Post
Topic
Board Altcoin Discussion
Re: Bitcoin Segwit2X
by
illinest
on 03/11/2017, 23:34:34 UTC
I'm only a noob trying to learn. With that said, when Coinbase adopts B2X and gives identical amount, where does the money come from. I just don't get how they can split a blockchain and give people "free money." Do they just make up a price? Any links to articles help and any help in general is appreciated.

It's only "free money" if there is market demand to buy it. So, there needs to be B2X bids that you can sell into. If there is really market demand for B2X, then we should expect that this represents a dilution of BTC investment. So one way to think about this: if B2X has value, it is likely cannibalizing BTC (taking away some of its investors). In that sense, the money is not "free" -- it's coming from the pockets of BTC holders.

Now, that doesn't mean that BTC necessarily has to fall in value (although that's likely in the case of a major split). It could just rise slower than it would have otherwise.