Bitcoin Civil War Could Create Cryptocurrency Clone

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Bitcoin Civil War Could Create Cryptocurrency Clone

We suggest you stock up on popcorn.

However, prominent and well-respected developers including Paxos principal architect Jimmy Song and bitcoin developer Andrew Desantis explained that simply holding onto existing bitcoins and not jeopardizing private keys to receive newly credit BCH is the most secure way to deal with the hard fork.

Recently, a group of miners announced that they would create a new cryptocurrency based on bitcoin, called Bitcoin Cash, which increases the size of bitcoin blocks to eight megabytes (in the original system, they're only one megabyte). As a result, on August 1, the vast majority of bitcoin exchanges are shutting down for almost a full day to process BCH payouts.

The two rival proposals - Segwit2x and Bitcoin Cash - are attempting to solve this problem in different ways. From around $36 billion in June, Ethereum's market cap almost halved and at the time of reporting, Ethereum is valued to be $20 billion.

However, he said that bitcoin cash could "dilute bitcoin's dominance of the cryptocurrency space".

Moas has reportedly already purchased 10 of the top 20 digital currencies by market capitalization. That said, the currency split is not without setbacks. Will Bitcoin Cash turnout to be valuable or near-worthless?

Bitcoin was created by a pseudonymous coder (or coders) known as Satoshi Nakamoto, who released the software that powers the currency in 2009. Transactions are added to "blocks" or the links of code that make up the chain, and each transaction must be recorded on a block. "For bitcoin to continue to scale and have the potential to become a globally used currency, this slowdown in transactions has to be addressed", said Iqbal Gandham, UK Managing Director at eToro. The exchange warns that the outgoing BTC transactions may be delayed by up to 12+ hours due to backlog processing.

Bitcoin Cash won't include SegWit, either, a step some disagree with and want to avoid. The currency's foundation, a permanent, public ledger system called the blockchain, was too slow to accommodate the number of transactions per second it needed to. It is expected that any such distribution would be made only after allowing time for evaluation of the market for Bitcoin Cash and consideration of the manner in which to liquidate such Bitcoin Cash, which may be months after the fork occurs. "This means your funds will be safe but you will be unable to access your bitcoin (BTC) for a short period of time".

According to the community-supported website Bitcoin.org, the limited size of the legacy blockchain caused the currency to hit an "invisible wall" in 2017. But others will not. Alternatively, it is likely that Bitcoin Cash will be worth something but who knows how much, so there is no easy answer. Bitcoin Cash prices on Kraken are similar to Viabtc's futures at the time of writing. "But you also have a lot of people who can't stand bitcoin cash, and as soon as they have the ability to get those coins they're going to sell them on the market". "The science to the extent we've measured it aligns with their reasoning", he says. "The crucial part is the amount of economic interest in this new currency", says Sirer. He encourages investors to take the risk with the new financial concept, saying "I think investors should take a shot on this and hold for a few years".

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