After multiple ongoing debates over how to scale Bitcoin, the digital currency, miners have finally decided to make an entirely new form of digital currency called Bitcoin Cash.
Before we understand what the Bitcoin split means, it is essential to understand the entire concept of Bitcoin currency. Here is an infographic that can facilitate this.
“The course of the summer has been a battle between competing visions,” said Zaki Manain, an independent cryptocurrency expert.
In order for bitcoin to become a simple global payment system for anyone to use, it needs to overcome the hurdles in its way. Because the bitcoin network is becoming too congested, payments made through bitcoins take hours to be approved and processed.
The bitcoin community wanted to overcome this major hurdle by implementing a rule change to its software called “Segregated Witness.” This rule change will allow people put more transactions on each block. This, in technical terms, is called a “soft fork,” and would result in an entirely new cryptocurrency. The new rule is supposed be enacted this month.
The new form of cryptocurrency, Bitcoin Cash, is not worth the same as bitcoin. Per reports, a unit of Bitcoin Cash is valued at around $240, but one Bitcoin is worth more than $2,700.
“This will be informative for how we deal with these systems in the future. Without a doubt this is going to be a blueprint, and we are going to learn a lot from this process,” Manain said.