Please Help Me Understand The Fork?
I'm slightly confused on this. Many exchanges are providing bitcoin cash on a 1:1 basis. For instance 1 btc = 1 share of bitcoin cash.
Where is this money coming from?
If BTC is worth $2800 will it suddenly be worth $1400 when the fork occurs and you'll have $1400 worth of bitcoin cash?
If this is the case, won't alt coins lose half their value instantly since bitcoin is their dictator?
So if you own 500 coins of "coin X" and coin X is currently worth 0.05 bitcoin and the value of a bitcoin is worth $2800 then coin X individual value is $140 giving you a total value of $70,000.
Now if the value of bitcoin is suddenly cut in half and you own 500 coins worth 0.05 bitcoins then suddenly your value of Coin X goes from $70,000 to $35,000.
If you're invested in an ALT coin on the exchange do they still consider you to have ownership of BTC? For instance in the above example, you technically own 25 btc (70k/2800). Do they credit you with 35k in bitcoin cash and the other 35k would be your alt coin that lost half its value instantly? Or do you ONLY get bitcoin cash if you own no bitcoin? Which then would give you a value of 35k bitcoin and 35k bitcoin cash for 70k total?
Or am I thinking about all this completely wrong? Please help thank you so much.
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