"In the event of two separate blockchains after August 1, 2017 we will only support one version", David Farmer, the director of Biz Ops at Coinbase, a cryptocurrency exchange, wrote in a blog post. Now, the currency is set to split into two, leading to the creation of an entirely new currency called Bitcoin Cash.
The creation of Bitcoin Cash was the result of an ongoing debate regarding how to scale Bitcoin blockchain transactions, and experts are now divided on how the split will ultimately play out. It is a fork of the Bitcoin blockchain ledger, with upgraded consensus rules that allow it to grow and scale. It is essentially a new software that takes up the histories of its older counterpart in cryptocurrency, but holds 8 megabytes instead.
Bitcoin Cash will have a block size of 8MB: more coins will be available and the transaction fees will be lower.
The new currency was trading above USD400 about twelve hours after it was created, while the price of bitcoin proper was around USD2,750.
However, if their Bitcoin funds are stored in third party company's like an exchange, they must inquire about their cash on the said exchange. He also says that Bitcoin Cash is likely to trade at around 10 percent of the price of bitcoin, according to CNBC. The explosion propelled Bitcoin Cash's price to over $700 doubling the asset once again. On the other side are the miners, who want to increase the size of blocks to make the network faster and more scalable.
Bitcoin.org states that anyone who owns bitcoin will automatically own the same amount in Bitcoin Cash after the fork.
Bitcoin Cash is the result of months of debate and development over how the currency would continue to evolve. Starting yesterday, ViaBTC gave the users an option to mine Bitcoin Cash using Bitcoin ABC, which is an open source fork of Bitcoin Core. In case of Ethereuem's hard fork, both Ethereum Classic and Ethereum have survived and thrived, and the same can be the case with legacy bitcoin and the new comer as well. Nakamoto designed it so that its smallest sub-unit, nicknamed the satoshi by the bitcoin community, is one hundred millionth of a bitcoin.
As long as you still have access to your private bitcoin keys, you should be able to do what you want with your new tokens. Trading got off to a volatile start, with the value of bitcoin cash initially surging before experiencing a dramatic fall later in the day. Bitcoin is now around $2,726. Each platform is treating the new Bitcoin Cash differently.