The creation of a second Bitcoin asset, Bitcoin Cash this week did almost nothing to dilute the price of original Bitcoin Instead the value of the new crrptocurrency soared generating almost $US7.5 billion.
A group of Bitcoin developers created a new version of Bitcoin called Bitcoin Cash (BCH) as a result of a scaling debate.
Within a few hours of creatiom, the value of the new cryptocurrency -Bitcoin Cash touched almost $1400.
Bitcoin cash was rewarded to users who had stored Bitcoins on those exchanges and wallets that supported Bitcoin Cash.
(Click here to view a list of Exchanges and Wallets Supporting Bitcoin Cash)
Investors who holded Bitcoin and who clearly weren’t frightened off by the fork because are now credited with an equal amount of Bitcoin Cash.
The investors were rewarded Bitcoin Cash in 1:1 ratio who held Bitcoins.
“Everyone who has Bitcoin, now has Bitcoin Cash and because the market reckons this is worth $600, it’s almost like free money!” quoted by a Bitcoin user.
“Bitcoin Cash is simply like extra printing of fiat currencies” – says another Bitcoin user
It was expected that the price of Bitcoin may drop due to the issuance of new version of Bitcoin, But it didn’t happened.
Instead the Bitcoin price was stable around $2700 and Bitcoin Cash witnessed huge volatility.
Bitcoin Cash is a result of years of Bitcoin scaling debate. As the BTC was gaining huge popularity worldwide it attracted a lot of users. As a result, transactions got delayed and miners fees soared. Clearly the opposite for what Bitcoin was developed for.
The Bitcoin developers and community were worried about this issue and wanted to sort it out in order to again increase the speed of transactions at low cost.
A compromise was reached between the Core developers of Bitcoin – those that maintain the underlying technology – and the miners, but some miners decided to branch out and run their own software, that increased the blocksize quicker.
These new miners have developed Bitcoin Cash.
(Click here to understand about Bitcoin Cash in more details)
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