After years of intense debates, the Bitcoin community might split the cryptocurrency into two. So what we should expect?
After years of intense debates, the Bitcoin community might split the cryptocurrency into two. This means that users would witness the launch of an alternative token named Bitcoin Cash.
Bitcoin Cash is supposed to have a bigger “block size” than Bitcoin, while giving it more capacity to handle transactions with low fees. Bitcoin holders will be entitled to an equal amount of Bitcoin Cash, as bitcoincash.org wrote.
“All current Bitcoin holders will automatically own Bitcoin Cash. The existing ledger at the time of the split is preserved, thus users retain any balances they had before the split.”, according to their statement.
However, the “user-activated fork” remains a controversial topic in the bitcoin community. With the fork day becoming a reality, it is good to know what may happen in the next few days.
The cryptocurrency exchanges, wallet providers and mining pools are preparing for the fork. Some exchanges like ViaBTC, OKCoin, Coinfloor and others have announced they will credit bitcoin cash to traders holding bitcoin.
However, there are exchanges that may not be eager to support the trade of Bitcoin Cash. As Coinbase stated on their website:
“In the event of two separate blockchains after August 1, 2017 we will only support one version. We have no plans to support the Bitcoin Cash fork. We have made this decision because it is hard to predict how long the alternative version of bitcoin will survive and if Bitcoin Cash will have future market value.”
“This means if there are two separate digital currencies — bitcoin (BTC) and bitcoin cash (BCC) — customers with Bitcoin stored on Coinbase will only have access to the current version of bitcoin we support (BTC). Customers will not have access to, or be able to withdraw, bitcoin cash (BCC).”, as they elaborated.
Bitcoin Cash`s launch is expected to be official on August 1, shortly after 12:20 pm UTC. Miners that are mining Bitcoin Cash are to create a transaction block greater than 1MB in size and fork the bitcoin network.
It is to be seen whether the miners would get behind it. There are different scenarios depending on the percentage of hash power that the new blockchain receives.
“If less than 16% of bitcoin’s current hash power transitions to Bitcoin Cash, the first block will likely take over an hour. This won’t affect the bitcoin blockchain that much, though on average, blocks should take a little longer than 10 minutes.”, as coindesk.com explained.
“If more than 50% of hash power is mining Bitcoin Cash, the first block will likely take less than 20 minutes. This will slow down the bitcoin blockchain significantly. Blocks on bitcoin will take longer than 20 minutes on average.”, the online media added.
It is uncertain at this point what will happen after the split. In case bitcoin cash gains traction, investors might rush to sell.
Also, it remains to be seen what will be bitcoin cash`s debut in the market cap ranking, and how this may affect the bitcoin price.
“It is likely that bitcoin cash will pull at least some of its value from the bitcoin market cap, but how drastic and immediate will the transfer be? If the bitcoin cash price opens at $300, for instance, will the bitcoin price decline in response?”, as cryptocoinnews.com speculated.
The whole community is waiting to see whether and how the hard fork will be realized into practice. The issue is to be closely followed.