Bitcoin went through a major upgrade on August 1 that saw the popular cryptocurrency split into two, Bitcoin and Bitcoin cash.
Nodes were required to send messages across the bitcoin network, but Bitcoin ABC was able to use a different set of rules, causing the blockchain (the digital ledger which records every Bitcoin transaction) to split and create two separate digital assets: the original Bitcoin and Bitcoin Cash.
Why did Bitcoin split?
The split was caused by the division on how to solve its scaling issue. As of then, only 1 megabyte of transactions were processed at any one time, leading to delays in their services. The demand for Bitcoin was so huge that those that created it couldn’t keep up, thus leading to slower transactions.
The slowdown had to be addressed before the cryptocurrency has the potential to become a globally used currency. There were attempts by Bitcoin miners to solve the problem earlier by signaling support for SegWit2X. This was intended to introduce "segregated witness" to the block chains, which would move some of the data outside the main Bitcoin network to increase its capacity, and later increased the number of transaction to 2 megabytes. The move was rejected by most investors and miners felt that the solution wasn’t going to solve the whole issue.
The creation of Bitcoin cash now came to play and it has increased the transaction limit to 8 megabytes
Who is supporting Bitcoin Cash?
Initially. Bitcoin exchanges were divided on whether or not to support Bitcoin Cash. Several exchanges, such as BitMEX, Bitstamp, and Coinbase, have reiterated that they will not support or allow trading of Bitcoin Cash on their exchanges, which means investors holding bitcoins on these sites will not receive any new tokens. After it has been finalized though, there are hopes that their stance will change
What is Bitcoin Cash worth?
At this point in time, Bitcoin is worth a fraction of Bitcoin. Here is the current market value for the cryptocurrencies.
From the data above, it is clear that Bitcoin Cash is now the third in terms of market value. It is also analyzed that Bitcoin cash will not pose any threat to Bitcoin.
What is the Bitcoin cash price?
Bitcoin cash closed at $452.66 on Thursday after reaching a high of $756.93 and a low of $309.33. The bitcoin price closed much higher at $2,729.51.
Dr. Garrick Hileman, a research fellow at the Cambridge Centre for Alternative Finance, said this data makes Bitcoin cash the third largest cryptocurrency on paper.
But he said: “I don’t believe that proper price discovery has occurred yet. The big question, and it is still an open question, is what a fair price for Bitcoin cash is.”
How Bitcoin Cash will trade over the coming weeks is everyone’s guess. However, one thing are for sure, Bitcoin will not disappoint. Only some Bitcoin exchanges will support the new cryptocurrency, but some Bitcoin owners will find their stash automatically cloned into both types. It remains to be seen what the schism will do to market values."