BCH Risk

BITCOIN CASH (BCH)

INTRODUCTION
‍
‍There have been no expressed opinions by a regulatory authority in Canada about Bitcoin Cash or any of the other Crypto Contracts or Crypto Assets made available through Satstreet Inc., including an opinion that Bitcoin Cash itself is not a security and/or derivative. There may be sudden changes without notice to applicable laws that may adversely affect the value, use, transfer, or exchange of any of your crypto assets.The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other provinces and territories of Canada would not apply in respect of a misrepresentation in this Crypto Asset Statement or the Satstreet Inc. Services Risk Statement. The below provides a summary of risks associated with Bitcoin Cash and is not a complete list of all risks and does not take into account an individual’s specific risk tolerance or situation. Investors are encouraged to conduct their own research prior to trading any crypto asset. Satstreet Inc. clients should read the Satstreet Inc. Services Risk Statement for the general risks associated with crypto assets made available through Satstreet Inc.
A copy of the Satstreet Services Risk Statement is available at https://satstreet.com/services/risk-statements
‍
DESCRIPTION

Bitcoin Cash (BCH) is a cryptocurrency that emerged as a result of a hard fork from the original Bitcoin blockchain in August 2017. It was created with the aim of addressing some of the scalability issues faced by Bitcoin and enabling faster and cheaper transactions. Bitcoin Cash follows the same underlying principles as Bitcoin but implements a larger block size (8MB initially, later increased to 32MB) to accommodate more transactions and improve scalability.

The main motivation behind the creation of Bitcoin Cash was to provide a cryptocurrency that could be used for everyday transactions. By increasing the block size, Bitcoin Cash aimed to lower transaction fees and reduce congestion on the network, in the hope of being more practical for everyday use. Bitcoin Cash aspires to be decentralized and immutable, to allow users to securely send and receive funds without the need for intermediaries.

Bitcoin Cash (BCH) Whitepaper: https://bitcoincash.org/
‍‍
RISKS OF BCH

Any investment in cryptocurrency and digital assets, such as BCH, can include the following general risks:(i) volatility risk and liquidity risk(ii) short history risk(iii) demand risk(iv) forking risk(v) code defect risk(vi) regulatory risk(vii) electronic trading risk(viii) cyber security risk

For additional information of risks associated with cryptocurrency and digital assets, you may refer to the Satstreet Inc Services Risk Statement. In terms of specific risks, as BCH has no central working group or authority to disclose material information to the public regarding BCH. Please note that these risks and the associated summaries or overviews provided for each herein are not intended to be a complete overview of all such risks and, in addition, there may be other risks that come with exposure to BCH. We encourage all users to perform their own due diligence to assess the risks associated with BCH and to determine whether this level of risk is acceptable to them. Neither BCH nor Satstreet guarantees the value of BCH, and holders of BCH will not have any recourse to BCH or Satstreet if the value of BCH declines for any reason whatsoever.

SATSTREET EVALUATION OF BCH

Satstreet Inc. has reviewed and assessed BCH prior to making it available through our services and has concluded that BCH is not a security or derivative under Canadian securities legislation; however, there is a risk that this conclusion could change in the future and that, in such event, Satstreet will be required to halt, suspend, and then remove BCH from its platform as described in the Satstreet Inc. Services Risk Statement.

Further, as indicated above, no Canadian securities regulatory authority has expressed an opinion about BCH, including an opinion that BCH is not itself a security and/or derivative. Based on publicly available information Satstreet has reviewed BCH, including, but not limited to, a review of the following: The creation, governance, usage, and design of BCH, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created BCH. The supply, demand, maturity, utility, and liquidity of BCH. Material technical risks associated with BCH, including any code defects, security breaches and other threats concerning BCH and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them. Legal and regulatory risks associated with BCH, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of BCH, and (ii) statements made by any securities regulatory authorities in Canada, other regulators in IOSCO-member jurisdictions, or the regulator with the most significant connection to BCH about whether BCH, or generally about whether the type of crypto asset, is a security and/or derivative.Last Updated: June 2023

Risk Statements

Interested in learning more?