It is a crucial moment for Bitcoin, as investors are about to receive a completely new asset which is called Bitcoin Cash , after the blockchain supporting the cryptocurrency is forced to split in two.
Members of the bitcoin community are not feeling happy with the direction of the digital asset and because of that they have set up an alternative “node”, which is called Bitcoin ABC. Nodes are supposed to send messages across the bitcoin network, but Bitcoin ABC will use different rules and is about to cause the blockchain ( it is the digital leader which records every bitcoin transaction) to fork and create two separate digital assets: the original Bitcoin and Bitcoin cash.
Any investors with bitcoin tokens will receive the same number of tokens on the new blockchain, because Bitcoin Cash will have all the history from the old blockchain.
According to Charles Hayter, the founder of digital currency comparison website CryptoCompare, the creation of Bitcoin Cash is certainly a pivotal moment for Bitcoin and its community and the inception of Bitcoin Cash may prove to be exactly what Bitcoin needs.
However, Bitcoin Cash will likely only be worth a fraction of bitcoin.
Bitcoin exchanges divided in support giving
Bitcoin exchanges are divided on whether or not to support Bitcoin Cash. Several exchanges, such as BitMEX, Bitstamp and Coinbase, have said 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. Some exchanges are also suspending bitcoin trading, withdrawal and deposits around the time of the fork. Hayter advises bitcoin investors to check for any statements issued by their exchange to find out whether or not they will receive the new token.
According to Garrick Hileman , research fellow at the Cambridge Centre for Alternative Finance, once it launches Bitcoin Cash may gain more support.
He says: “Bitcoin Cash could be significant but we won’t know more until after it launches. If it fails to sustain support then it could fade away.”
What will Bitcoin Cash bring?
Aurélien Menant, founder and CEO of Gatecoin, a regulated bitcoin and ethereum token exchange based in Hong Kong, says parts of the community are referring to the new token as Bcash. He says the new coin will pose no threat to the future of bitcoin.
Fran Strajnar, co-founder & CEO of data and research company Brave New Coin, says most cryto currency funds and investors are looking forward to receiving their free tokens.
Strajnar predicts the price for Bitcoin Cash could be hit heavily once it is open to trading.
“If there’s any legs at all to Bitcoin Cash or if the miners backing it deploy large scale and sustained attacks on bitcoin, then Bitcoin Cash may survive its initial violent birth.”
According to Matthew Roszak, co-founder & chairman of blockchain enterprise software company Bloq, whatever happens, bitcoin will not disappoint in terms of creating drama.