If you just Googled “Bitcoin Cash to Bitcoin Wallet,” chances are you came across forum after forum with people freaking out because they accidentally sent Bitcoin Cash (BCH) to their Bitcoin (BTC) wallet. Though it can be a frustrating ordeal, just know you’re not alone and it’s not only noobies who make this mistake.
The first thing you need to do is calm down and relax. Depending on the circumstances, you may or may not be able to recover your money. Additionally, if you send Bitcoin Cash to a bitcoin receiving address, the receiver now has complete control over your private keys. More on that later.
Sending Bitcoin Cash to Bitcoin Wallet
Usually, Bitcoin Cash to Bitcoin Wallet issues involves sending Bitcoin Cash to a hardware wallet. The user sends Bitcoin Cash to the wallet in question while using a bitcoin receiving address. Various cryptocurrency wallet companies have sent users numerous warnings concerning problems of sending BCH to a BTC address. Nevertheless, complaints and panicked pleas for help appear all over the Internet nearly every day.
And the problem isn’t limited to new users; experienced cryptocurrency users have encountered the same problem. Other than hardware wallets, people have sent BCH via digital wallets, only to discover they accidentally transferred it to a BTC wallet. This means it can occur anytime and while using a hardware or digital wallet.
Receiver Has Total Control Over Your Private Keys
As stated above, sending a BCH to a BTC receiving address gives the receiver complete control over your private keys.
If you sent BCH to a friend’s BTC or an honest person, the receiver can help you retrieve your Bitcoin Cash. However, be prepared for others to not be as kind. In some cases, if you’re dealing with a company, it may be against their policy.
Like BTC, whoever gets access to your private keys now has full control over your coin. The only thing they need to do is import the private keys to that BCH address to any software that supports BCH. Once this is done, the individual can do whatever they want with your funds.
Beware of a Bait and Switch Fraud
“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.” -bitcoinist.com
The Deceptive Name ↓
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 newbie:
- 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.”
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.
Bitcoin Cash’s main difference from the core Bitcoin code is the adoption of a larger block size, which was increased to 8mb in a move deemed as important in trying to help Bitcoin transaction processing speed and bottleneck 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.
Courtesy of bitcoinist.com.