For all the success Bitcoin has had over the past several years, the cryptocurrency has struggled to adequately manage the rapid growing number of transactions and spike in demand. Those who understand the technical aspect of Bitcoin have long recommended an alternate implementation of the cryptocurrency to remedy its back-logging challenges. Indeed, this suggestion has become a legitimate solution that is now a reality. Bitcoin has split into two: Bitcoin Cash and regular Bitcoin, now referred to as Bitcoin classic.
The Promise of Bitcoin Cash
Similar to the original Bitcoin, Bitcoin cash makes use of the cryptocurrency’s main innovation: the Bitcoin blockchain. This is a permanent ledger of each transaction conducted with the Bitcoin currency. The recent split has created two versions of this ledger. It will greatly improve efficiency by heightening transaction capacity. Bitcoin Cash blocks have already been created on their own blockchain. The currency is currently trading around $375 USD for each coin. Orders are pouring in left and right. Yet some doubters argue practical issues could arise such as disappearing coins. There might also be philosophical tiffs like the general overarching agreement that the blockchain represents the single true Bitcoin.
The hope is that the new iteration of Bitcoin makes it easier to utilize Bitcoin for purchases and sales. Those who mine Bitcoins are particularly happy about the split. These miners control Bitcoin’s supply. They welcome the technological improvement brought by Bitcoin Cash. They believe this development will help the cryptocurrency perform better in competition against other payment networks ranging from traditional credit card systems to PayPal.
The Catalyst for Bitcoin Cash
The lengthy dispute regarding the addition of Segregated Witness, a code of software designed to ameliorate transaction processing, is largely responsible for the creation of Bitcoin Cash. Those who held Segregated Witness in disfavour believed its software limitations constrained the cryptocurrency’s utility. They argue the coders responsible for Segregated Witness designed the software to block AsicBoost, another program that helps miners solve mathematical challenges in a timely manner. If these mathematical problems are not solved in haste, it takes longer to produce Bitcoin. Miners earn the majority of their income through Bitcoin production.
Bitcoin Cash Value Versus Bitcoin Classic Value
At the moment, Bitcoin Cash’s value pales in comparison to that of Bitcoin Classic. Bitcoin Classic is valued around $2,700 while Bitcoin Cash is valued around $375. Industry experts anticipate the market for Bitcoin Cash to be quite volatile in the coming weeks and months. However, these fluctuations are temporary hurdles that will likely be overcome with ease. It will certainly be interesting to see how Bitcoin Cash and Bitcoin Classic values trend in the coming days, months and years.
Will Splitting Bitcoin Prove to be a Wise Decision?
The bottom line is two versions of Bitcoin will likely prove better than one. Bitcoin Cash will reduce conflict within the Bitcoin camp. As long as Bitcoin Cash attracts miners, it will almost certainly prove successful in the long run. Bitcoin Cash will dramatically increase the number of transactions. The Bitcoin system will no longer be limited to seven transactions per second thanks to the split. Bitcoin Cash solves the capacity challenge. It boosts block sizes from a single megabyte all the way up to eight.
Look for Bitcoin Cash to attract a steady stream of miners that allows the new version of the popular cryptocurrency to gain traction. The end result will be a heightened network speed that increases transaction capacity eight times over. This heightened production will also dramatically expand current Bitcoin holdings.
Check Bitcoin Prices on MyGold
We invite all investors and traders to check Bitcoin prices on MyGold. We provide Bitcoin prices in USD as well as NZD. Our Bitcoin prices are updated in real-time. MyGold Bitcoin price quotes are also accompanied by percentage gained/lost, highs, lows and helpful charts.