March 22 2018

Bitcoin is set to split in two, here's what that means

March 22 2018, 03:58 | Clarence Walton

Right now a single Bitcoin is going for more than double the price of an ounce of gold

Bitcoin Gold Coin

That step, set to occur in August, is backed by Bitcoin developers.

What emerged was a bitcoin rival called bitcoin cash, bucking a proposed solution called SegWit2x.

Bitcoin Cash is the result of months of debate and development over how the currency would continue to evolve. The bitcoin blockchain is a public ledger containing all the transaction data from anyone who uses bitcoin. So basically if you have a balance in Bitcoin right now, then you would have the exact same balance in Bitcoin Cash.

One expert said the process had gone smoothly so far and pointed out that trade in Bitcoin Cash seemed "robust".

The creation of Bitcoin Cash was the result of an ongoing debate regarding how to scale Bitcoin blockchain transactions, and experts are now divided on how the split will ultimately play out.

The bitcoin community tried to solve this problem by implementing a rule change to its software. As different wallets and exchanges are supporting Bitcoin Cash, you can place your bets and take some risks.

Today, the cryptocurrency, Bitcoin, has split in two as a "breakaway" group of Bitcoin miners and developers plan to create a new network that increases the transaction capacity of Bitcoin.

Crypto exchanges Kraken and OKCoin are offering live trading of the new bitcoin cash crypto.

Bitcoin cash is a fork of the bitcoin system: It's a new software that has all the history of the old platform - the main difference being it will have 8 megabyte blocks instead of 1 megabyte blocks, making it faster.

Heads up to those who own bitcoin via an exchange: If you haven't transferred your bitcoin to a "local wallet", you may not see the cash bitcoin. This has been compared to a stock split, but the similarities are fairly tenuous as there is no real link between the prices of the two cryptocurrencies.

This has a nuanced implication for Bitcoin owners. Exchanges such as Coinbase and Bitstamp have not shown support for the new proposal. Ever since ViaBTC announced they would be trading BCH tokens against both the Chinese Yuan and Bitcoin, people have been trying to influence the price of the nascent altcoin. Granted, Bitcoin Cash was trading at almost US$900 less than a week ago, and the ongoing price declines are not too positive when looking at the bigger picture.

Q: What is bitcoin cash?

"Bitcoin cash has a chance to become the dominant cryptocurrency contingent upon its ability to gain trust and support from both current and new players as well as security of its network".

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