Bitcoin was split in two on 1 August: the original version and the new Bitcoin Cash.Despite the fact that experts expect the digital currency to get tricky, Bitcoin Cash is already the third most valuable cryptocurrency of the moment.
This is shown by information from Coinmarketcap , a party that keeps track of the price and value of cryptocurrencies. In the first place Bitcoin is worth 44 billion dollars, followed by Ethereum and Bitcoin Cash with a value of 20 and 11 billion dollars.
What is Bitcoin Cash?
The Bitcoin community has long been engaged in a discussion about changes in the underlying technology: the blockchain. Critics want to adjust the blockchain to process Bitcoin transactions faster, but a large group of users want to keep Bitcoin as it is.
Those two groups had reached an agreement last month. But for many fanatical Bitcoin supporters that was not enough: they have continued the split, which many tried to prevent.That has become Bitcoin Cash.
Payment blocks much bigger
The big difference between Bitcoin Cash and the normal Bitcoin is the size of the payment blocks. The original Bitcoin has blocks of 1MB that fill up quickly with orders, so that processing payments takes so long. With Bitcoin Cash, the blocks are no less than eight times larger, making payments much faster.
The advantage of Bitcoin Cash is that people who already had bitcoins automatically have the same coins in Bitcoin Cash. However, this only happens with people who manage their bitcoins themselves or who are at a Bitcoin Cash-friendly Bitcoin exchange.Coinbase, currently the largest Bitcoin exchange, does not support this, for example.
Experts, however, expect Bitcoin Cash in the long term to get difficult to grow. The current version of Bitcoin has, for the time being, much more support and the price seems to remain stable despite the split.
Power of miners
It remains exciting times for Bitcoin. In November, a big decision is made about the original Bitcoin. Then it is all about the size of those blocks: they may be increased from 1 to 2 MB. This means that the Bitcoin is split up again: one with blocks of 1MB, and one with blocks of 2MB.
The question then is: which version will the miners support? Bitcoin miners use the enormous computing power of their computers to ‘discover’ new bitcoins. To be able to do this they are obliged to verify payment orders. They act as processors of the bitcoin payments and are therefore essential for a reliable system.
It is possible that all Bitcoin miners switch to the new version, making the old variant is no longer functional because there is no one to check the assignments. But there is also a chance that only a part of the miners will switch. Maybe then even have three versions of the Bitcoin.
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