Bitcoin Split Yields New Cryptocurrency

The Bitcoin landscape is shapeshifting radically. Not long ago we reported on a temporary halt in bitcoin use in Japan, due to instances of forking . A big split has recently occurred and is sending seismic waves of an enormous measure, leaving users and operators in a state of anxiety as the events unfold. However, the split seems to be very stable and no side is at loss – for now, at least.

Here is the gist: the Bitcoin network capacity, being limited to just 1MB, was a years-long issue within the community, which has been actively seeking a method of increase. Early this week, a split from the Bitcoin blockchain was announced through the use of a new software, incompatible with the traditional mechanism. This, effectively, created a new kind of cryptocurrency, called ‘Bitcoin Cash.’

With this new digital currency, the network block size will rise to 8MB, with one benefit for users being the fact that both the original and new type of cryptocurrency originate from the same blockchain. Individuals currently in possession of Bitcoins will be allowed to receive and use the equivalent amount of cash coins on the new blockchain.

The move is the result of actions taken by a group of insurgents, dissatisfied with the way block size increase was to be handled.

Almost immediately after the forking and the birth of the new cash, ripples…well, more like shockwaves, were sent across the financial realm – albeit, very well controlled shockwaves. Right now, the value of the new digital cash stands at around $500, after climaxing at one point at $628. The original Bitcoin value has remained unchanged and is light years ahead still, at $2700.

Already, necessary measures are being taken left and right for the new cryptocurrency to begin operating on every level – this includes exchangers and operators who are enabling their customers to buy and sell their Bitcoin Cash coins, and particularly a good piece of news for us here is that some operators in the gambling industry are already hard at work to make this new creation a permanent payment option.

Did you see this outcome coming? What are your thoughts on the split and what will happen next? Let us know in the comments below.

Source:

"Bitcoin fork watch: New digital currency takes off post-blockchain split“, calvinayre.com, Solana Jasmine, August 2, 2017.