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So assuming BTC and BCC are both viable and tradeable for some period after August 1st, is it not inevitable that some people will double spend, by trading a coin on BTC and also the same coin on BCC?
Any ideas what that will look like from an arbitrage perspective while the fork works itself out?
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A coin on either fork is distinctly a coin on its respective fork. Sure you can send someone BTC and then send someone else BCC that spent the "same" input, but no one will care because that is entirely a different coin using a different blockchain. With the kind of fork that will be happening, no sort of fraud (outside of any normal fraud) can occur. The fork implements two way replay protection so receivers cannot replay transactions and get money on both forks, and double spending cannot happen because this will be a persistent chain split with no possibility of blockchain reorganizations.
That there is $40 billion of market value in Bitcoin, how can they not care if it is forked? You can't maintain that stored value in both chains, or you will end up with an $80 billion market cap across the two, instantly creating $40 billion from nothing. That can't happen. Any market value that is found in BCC must, of necessity, be subtracted from BTC eventually, and vice-versa. My question is about arbitraging the liquidity between the markets for as long as both forks have any market value and liquidity at the same time. – Smack Jack – 2017-07-29T06:01:01.533
2It becomes two separate entities, so yes, there can be stored value in both chains. Creating a fork does not take anything out of the chain it forked from, it becomes two completely separate things. It becomes two completely separate coins. There is no necessity that market value of one coin be subtracted from the other as they are just now two completely different coins. – Andrew Chow – 2017-07-29T06:12:13.540
@SmackJack - The market will decide exactly what value is invested in each fork. If people value BCH more than BTC (or anything else), then they will buy BCH with BTC, EUR, USD whatever. They have been doing this to some extent since the fork happened. BCH now has a notable value, but most seems to be coming from fiat as the BTC value (in fiat) isn't really decreasing. – Jonathan Cross – 2017-08-03T17:28:46.190