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by filmackay 3244 days ago
It's not a stock split (which would issue you more BTC), but a demerger - or a spin-off. This is where a company gives out shares in proportion to existing shareholding. It's like BTC has "spin off" BCH which was part of BTC - but now trades independently. I'd say a LOT of people do not understand this, because the price of BTC should have fallen, which I guess makes sense since this BTC has no entitlements and therefore is driven, a little like gold, on future expectations or speculation.

https://en.wikipedia.org/wiki/Demerger
2 comments
nullc 3244 days ago
Except that many people believe these new shares are worthless, so the price drop should be ~$0. Don't assume the market doesn't know this and isn't telling you this already.

(And before you say something about the bcash price not being zero: right now there are no functioning markets where you can deposit any to sell it.)

link
clarky07 3243 days ago
it's not a spin off though. nothing is leaving btc. no value is going away. someone else just created something out of thin air. also, bch was never a part of btc. it's simply something new that is using the past history of btc as a starting point, which creates new coins out of thin air, and distributes them to all the holders of btc.

No part of this makes sense for a short to have to go and buy bch.

link