Bitcoin (BTC) withdrawals from Coinbase is taking up a long time – in many cases up to 12 hours – with users of the service leaving en masse because of Coinbase stance on Bitcoin Cash.
Coinbase says that the Bitcoin (BTC) delays are the result of “a large volume of outgoing bitcoin (BTC) transactions” as well as “significant congestion on the bitcoin network”. Coinbase is saying that because of this users will face delays in withdrawing their Bitcoins (BTC) from Coinbase.
However, those keeping a close watch on the bitcoin network claim that this is an outright false claim because there is no backlog in the network and it is operating normally. The fact is entirely different as Coinbase’s own system is clearly very congested as more and more users race to withdraw their Bitcoin (BTC) ahead of the August 1 hard fork and shift it elsewhere to ensure that they get their Bitcoin Cash.
Coinbase isn’t going to provide its users with the equivalent amount of Bitcoin Cash that will be generated post the hard fork and has made it very clear through statements where in it has reiterated that their “customers will not have access to, or be able to withdraw, bitcoin cash (BCC).”
Stance of other exchanges and wallet providers
Unlike coinbase there are those who have come forward in full support of Bitcoin Cash and have said that they will not only allow users to withdraw their BCC, but will also list it for trading. ViaBTC was the first one to list BCC for trading under futures and while the terms were to freeze the BTC until after August 1 in order to have your BCC now, quite a few users opted for it because of which Bitcoin Cash price reached a high of $900 at one time.
Coinbase’s stance is puzzling for its CEO has been a long time proponent of bigger blocks. The sudden change towards opposing BCC is not going to go well for Coinbase considering that it is effectively stealing BCC of its users by not allowing them to withdraw.