Will Bitcoin Cash BCash be the reason for the hard fork that is expected in the next few hours?
Is Bitcoin Cash going to impact the future of Bitcoin? How will Bitcoin Cash impact Bitcoin? How big is the competition between Bitcoin Cash and Bitcoin? In this article, we will continue feeling the pulse of the divergence in opinion between supporters for Segwit2x and Bitcoin with the opinion of those who are supporting Bitcoin Cash!
In our recent article about the impending transition to Segwit2x we explained that Segwit2x is the scaling proposal that will facilitate the manner by which Bitcoin transactions are recorded in the open ledgers of the block chain in a speedier and more efficient manner.
Bitcoin transactions have been slower in the more recent months. This has necessitated the implementation of a system that will speed up the transaction system. However, this is not a simple process. The implementation of Segwit2x has been faced with a lot of debate. SegWit2x is now just a few hours away from activating on Bitcoin. Despite the fact that it has gained majority favoritism, not all Bitcoin users are happy about it.
Segwit2x proposes to increase the Blockchain size from 1MB to 2MB. However, some of the original backers of SegWit2x are now hesitant about the size increase, challenging that this increase will not be sufficient for the growing demand of transactions. Therefore some groups have now taken the decision in hand and decided to create a new version of Bitcoin which they will call Bitcoin Cash!
One of the developers of Bitcoin Cash is Calin Culianu. In an interview with CoinDesk, he made it very clear that unless Segwit2x managed to increase the block size as has been intended, then on August 1, at exactly 12.20 UTC (a few hours away from writing this article) he and a group of supporters, will split from Bitcoin. In turn, they will create a new crypto currency called Bitcoin Cash.
What is Bitcoin Cash and How Does it Vary from Bitcoin?
Bitcoin Cash proposes to
- Increase the capacity of Block size transactions from 1MB to 8MB – per ten minutes. They are not shying away from spectacular byte size!
- Completely remove SegWit as the manner of code keeping.
SegWit is supposed to activate by the end of August, but the supporters of Bitcoin Cash will be keeping the identical records of Bitcoin Blockchain up to the point of segregation, and from there on creating a new “altcoin”.
The current price for Bitcoin Cash is around $450. This means that it is about 20% of the price of Bitcoin. It follows that there is about 20% of the Bitcoin influencers who are supporting Bitcoin Cash. Although so far, up to the minute of writing, the probable fork has not affected the price of Bitcoin itself, it is, in fact, leading into a lot of confusion on how the technical fork will affect Bitcoin holders.
Bitcoin Cash at Odds with Current Bitcoin Network
In order to understand why Bitcoin Cash is gaining all this warranted or unwarranted attention, we need to see who supports Bitcoin Cash.
Bitcoin Cash supporters are those groups who are disagreeing with the technical direction of Bitcoin. Primarily we are looking at ViaBTC, which is just one of the twenty mining pools that is divergent.
But ViaBTC is not the only influencer that is supporting Bitcoin Cash. Other supporters include entrepreneurs and researchers as well as users. The technical proposals being made by the developers of Bitcoin Cash are making waves.
How Will the Fork Effect Bitcoin Holders?
In a recent post by Trezor – one of the leaders in cold storage for Bitcoin – the company assured its users that they will be providing an interface that will be accessible from Trezor whereby you will be able to gain access and safely claim your Bitcoin Cash coins.
What appears to be the general consensus, is that once there is a hard fork, every Bitcoin holder will be given “free Bitcoin cash” coins, aka Bcash (BCH) which you will claim. Later you can decide whether to exchange them to a different currency even Bitcoin itself. Finally, ViaBTC has confirmed that it will offer BCH to BTC exchanges.
It will appear that despite the split Bitcoin and Bcash could live side by side. Bitcoin Cash has already implemented all the necessary steps for protection. As such, this will provide against replay attacks. For this reason, Trezor has already declared that it can support the currency safely.
August 1st Historical Bitcoin Fork – It Has Already Happened – Conclusion
In this very second at the time of writing, the Fork has already happened. The non-compatible upgrade that will remove SegWit and that will raise the block size limit of 8MB has been done.
As it stands now, we are left with Bitcoin that is activating SegWit through BIP91/BIP141 and its new clone called BitCoin Cash.
We can only wait with bated breath to see how the future will play out!
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Article penned by Mariela S.