Bitcoin Unlimited has been recently listed on HitBTC and is being actively traded. We have received many questions from you regarding this update. We would like to provide a simple explanation so that every customer can understand how it works.
Please, check this out (clickable image):
As you can see, there are 2 currencies on the same blockchain at the moment: BTU and BTC. That’s why you receive both of them while depositing BTC. After hard fork, followed by split, there will be two separate independent networks, who share the same past. It’s like cloning a BTC network into a new one. Your funds are being cloned as well.
- I deposit 1 BTC, receive also 1 BTU and sell it. Now I have more than 1 BTC. How’s that?
- In case you deposit bitcoins, it reflects in BTU and BTC at the same time. These coins operate on the same blockchain, they share the same income, but they are independent. And you can operate with these parts of your deposit independently: sell BTU, sell BTC and so on. Sum of these parts equals to the amount of your deposit.
- Do some new strategies come with these new conditions?
- Yes, you get more possibilities in arbitrage trading! That’s our mission: to give you more tools and provide you with flexibility of choice. To illustrate possibilities of our exchange let us show you an example: you can sell your BTU, buy altcoins with BTC, withdraw them to another exchange and sell there, deposit BTC back on HitBTC, etc. (This example should not be treated as an investment advice).
- But why altcoin prices on HitBTC are higher than average market prices?
- Prices are always set by the market, HitBTC does not influence them in any way. As you already know, in case you deposit bitcoins, it reflects in two networks. One part shows up as BTC, another part – as BTU. Altcoin prices are shown in BTC only. So once you sell your BTU, with resulting amount of BTC you can buy as much altcoins, as you can anywhere with your initial amount of bitcoins.
- How fast do exchange-to-exchange transactions proceed?
- It depends on the network load and network difficulty. For example, new Ethereum block is being created every 2 minutes, BTC block – every 10 minutes. Also hashrate and number of confirmations matter. Usually the lower hashrate is – the more confirmations are required. But most currencies’ algorithms are unique, it isn’t correct to simply compare them.
- Is there a point in buying BTU?
- We can not provide our traders with any investment advices. HitBTC is a trading platform, which allows users to make their own forecasts and trade at their own risk. Our mission is to provide you with a freedom of choice.
- Why have you locked BTC withdrawals?
- Network split contains the risk of so-called replay attacks. In a nutshell, an attacker is able to carry off BTU coins while withdrawing BTC. Hardfork can happen any time and the only way to secure funds is to temporarily lock withdrawals.
- What if hard fork never happens?
- On March 31st a survey is going to be arranged in our Twitter. We will let our community decide, what steps should we take next. Link to the survey will be posted in this blog and sent to our users via email. Stay tuned! We consider voting due date as of April 4th.
- I have another question.
- Please contact us here. Also feel free to question us in the comment section!