Economy

First block of Bitcoin 'hard fork' Bitcoin Cash mined

First block of Bitcoin 'hard fork' Bitcoin Cash mined”

Because of this, August 1st will see a significant change to to the digital asset; more specifically, Bitcoin will be splitting in two, spawning a new currency called Bitcoin Cash. Blockchain is the technology used for verifying and recording digital currency transactions. They created a new currency, known as Bitcoin Cash, which allows block sizes up to 8 MB and should have a much faster transaction speed.

The bitcoin network can only support around seven transactions per second, compared with thousands per second piped through conventional financial networks such as Visa. Currently, the Bitcoin network has a limit of 1MB block of transactions every 10 minutes, with a plan to scale Bitcoin by evolving it into a settlement network containing only large transactions.

Other exchanges like Coinbase have said they would only support one version of Bitcoin. In the future markets, bitcoin cash is trading at approximately 13% of the bitcoin's current price. Just as the new day started in the USA, Bitcoin Cash vigorously went up.

Bitcoin Cash will have a block size of 8MB - far larger than the 2MB that Bitcoin will increase to in November under the Segwit2x initiative.

One reason for this is Coinbase and others dislike the idea of Bitcoin Cash because it relies on a so-called "fork" of the software which runs the bitcoin blockchain, and on which all transactions are recorded.

This has a nuanced implication for Bitcoin owners.

Essentially, there is nothing that you have to do to get your bitcoin cash - as long as you already own some bitcoins. Also, its critics say that it's easy to make spin-offs but what matters is protecting and growing bitcoin's value in ways that benefit the entire ecosystem of decentralised online currencies.

"A market seems to be emerging for Bitcoin Cash that looks to be relatively robust", he added.

You can find a list of the exchanges and wallets that support the new fork at this link.

The spike in its value led to a boom in Bitcoin transactions that the cryptocurrency's decade-old system struggled to cope with.

As a precautionary measure to ensure no one loses their bitcoins in case of a network disruption, exchanges will suspend the sending and receiving of bitcoin on August 1.

According to commentators, this was significant as the new Bitcoin Cash was expected to be worth real money.

Anyone who owns bitcoin will also own the same number of Bitcoin Cash units.

Enter Bitcoin Cash, or BCH, a new cryptocurrency based on the bitcoin blockchain but diverging from it significantly from here on out.



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