Bitcoin cash which is just another modified crytocurrency has hit the market, and has been mined for the first time in the crypto-currency’s history. Bitcoin cash was developed as a currency that increases the capacity of Bitcoin’s underlying technology – the blockchain (the digital ledger that keeps track of every single bitcoin transaction).
Instead of creating an entirely new currency (and of course its own digital ledger i.e. blockchain ) and starting at block 0, bitcoin’s blockchain forked instead. This means that a duplicate version of currency that shares the same history as bitcoin. So, every past transaction on bitcoin cash’s new blockchain are identical to bitcoin core’s blockchain, although futre transactions and balances will be totally independent from each other.
In simple terms, everyone who owned bitcoin before the fork now has an identical amount of bitcoin cash which is recorded in bitcoin cash’s forked blockchain. Because of the need for the continuous evolution of Bitcoin, Bitcoin Cash came after months of both debate and development.
One of the major improvements with Bitcoin Cash is that blocks can now be as large as 8MB unlike the old bitcoin that could only have 1MB of data added to it every 10 minutes. And this had caused transactions to be processed at very slow rates, but Bitcoin Cash now hopes to solve this problem. At the launch of the currency, BBC reports that block number 478559 which was just under 2MB in size was mined.
Even though there are still fears by some exchangers concerning the future of the coin, the crypto-currency was comfortably trading about $400 just about 12 hours after its creation and this makes it the fourth largest crypto-currency by market cap right now.
Providers such as Coinbase have insisted that they have no plans of distributing Bitcoin Cash to users or even interacting with the new blockchain at all. This is because companies such as Coinbase and Germini do not think Bitcoin Cash is going to be worth anything in the long run, even though it started trading on a high note. They still feel it’s a distraction.
Update for customers asking if Coinbase is keeping their bitcoin cash (BCC) pic.twitter.com/gamiKDTVmx
— Coinbase (@coinbase) July 28, 2017
So currently, it’s still very hard to sell Bitcoin Cash. The liquidity is very low. The ones trading with it are users who have their Bitcoin Cash inside exchanges that support trading. The ones that don’t are still very much stuck.
Just like most crypto-currencies, it’s difficult to predict what might happen next. It is believed that most people would sell their Bitcoin Cash as soon as they get the chance to, at the same time, it’s also possible that a lot of people would flock to it, thereby increasing its value exponentially. We’d just have to find out which one it would be.