The Bitcoin wallet provided by Bitcoin.com is defaulting to Bitcoin clone Bitcoin Cash (BCH) instead of Bitcoin (BTC). Users sending Bitcoins to a BCH address could potentially lose their coins.
The controversy was brought to light on a posting on Reddit’s /r/Bitcoin, where one user claimed that the Bitcoin.com wallet defaulting to a BCH wallet is a “scam”. The move is certainly confusing, as the Bitcoin.com wallet which defaults to Bitcoin Cash is called a Bitcoin wallet and not a Bitcoin Cash wallet.
Reddit user /u/Renben9 posted:
I share your concern. Lots of people will send BTC to the BCH address. To all the geeks who don’t think this is a problem, view it from the perspective of a newbe:
- Go to exchange and buy bitcoins
- Download bitcoin wallet
- Send your bitcoins to your bitcoin wallet
- Nothing happens.
The controversial Bitcoin fork, Bitcoin Cash – or BCH, is a clone of Bitcoin which has already been described by The Keiser Report host Max Keiser as a “fraud“;
Bitcoin cash is an alt-coin that has its fans just like many alt-coins. I don’t think anyone who uses bitcoin’s name and applies it to an alt-coin like bitcoin cash does is adhering to acceptable business practices. In other words, bitcoin’s brand is being stolen by a competitor that calls itself bitcoin cash and this is outright fraud in my opinion, just like it’s fraudulent to use Coca-Cola and Nike’s name to sell soft drinks or shoes.
The naming confusion expands further with the newly forked Bitcoin Cash using the website Bitcoin.com, and the Bitcoin most are familiar with uses Bitcoin.org. The chance of buying or even reading about the “the wrong bitcoin” is therefore increased, especially to those only just beginning to dabble in cryptocurrency.
How Exactly is BCH different from BTC?
Bitcoin Cash’s main difference from the core Bitcoin code is the adoption of a larger blocksize, which was increased to 8mb in a move deemed as important in trying to help Bitcoin transaction processing speed and bottlenecking issues. The downside of this is that it will make it harder for those running their own nodes such as on Raspberry Pi’s, deemed essential to keeping Bitcoin decentralized, no matter how small their contribution it can make a real difference in poorer countries lacking internet infrastructure.
Bitcoin core’s (The Bitcoin) answer to transaction speed is not increasing blocksize but instead introducing off chain solutions such as those provided by the Lightning Network. While this solves transaction speed and bottlenecking issues, including being able to swap Bitcoin for other currencies such as Litecoin, it does mean that those mining Bitcoin will not make as much money processing lower fee driven transactions.
All can agree that the waters have been muddied, but with traditional investors and the world’s largest trading platform CME Group due to start trading Bitcoin futures, it would appear BCH has a lot of catching up to do which may explain some of it’s potentially dirty and brand confusing tactics.
At press time, the price of Bitcoin Cash currently sits at $1186, compared to Bitcoin’s $8240.
Are Bitcoin.com and Bitcoin Cash abusing users by misusing the Bitcoin name? Let us know what you think in the comments below.
Images courtesy of Bloomberg, Reddit,Show comments