Bitcoin Cash refers to the first split from the legendary crypto-currency market leading Bitcoin block chain. On August 1st the splinter group created its new crypto-currency Bitcoin Cash. The developer of this rival to the original behemoth is Calin Culianu. He explains that there are two principle noteworthy changes to the new bitcoin. These are an increase in the size of the block chain to eight megabytes and a removal of the SegWit code change that could activate on the bitcoin block chain by the end of August.
There are many detractors from this first Bitcoin splinter group who refer to the new Bitcoin Cash as merely an “altcoin.” This refers to a software fork which leads to a newer crypto-currency that has its own independent market. The splinter Bitcoin has already taken a severe beating on the crypto-currency markets by trading at only $461 to the real Bitcoin’s hefty price tag of $2,568. This represents approximately an only 18 percent valuation against the original on the futures market. It reveals the still limited level of confidence in and support for this altcoin which it boasts from current Bitcoin backers.
What gives the Bitcoin Cash crypto-currency some legitimacy is that it will maintain the same transaction history as the real Bitcoin does all the way up to the point of the split. This means that current users of bitcoin would have it on the two block chains. The newer project will also allow for multiple implementations of the new software. The first software that has implemented the Bitcoin Cash protocol is Bitcoin ABC. The splinter group’s ultimate goal is for many more such implementations in the future. In fact, developer Culianu is already working on Bitcoin Classic and Bitcoin Unlimited as future implementations which will boost the block size of the BTC. Their goal is to ensure that they are compatible with the original implementation of Bitcoin Cash.
While there are a few supporters who are eager to embrace the changes, the majority of Bitcoin mining pools, mining companies, developers, and users are uninterested. The leading firm that has enthusiastically embraced the new code is the Chinese-based mining company ViaBTC. They control a nearly four percent of all Bitcoin computing power today. ViaBTC even operates its own BTC exchange. It is the first one to list the new crypto-currency format and even has plans set to launch its own mining pool which is entirely dedicated to the new Bitcoin Cash.
Certainly the Bitcoin Cash has garnered much-needed support from those users who long to see an increase in the size of the block chain. This includes the developers from the new rivals Bitcoin Unlimited and Bitcoin Classic.
Many former supporters of the new rivals such as Bitmain and Bitcoin.com are hesitant to actually back the new breakaway efforts now that they have formally split off. They are still committed to the Segwit2x scaling proposal which is set to be implemented on the main Bitcoin by end of August.
In fact it was Bitmain that came up with the inspiration for Bitcoin Cash. Despite this, they announced that they will only switch over to the rivals if the conditions are right. They have left the door open to support both Segwit2x main BTC as well as the newer varieties going forward.
Meanwhile, Bitcoin.com has announced that it will permit its miners in the pool to decide if they want to mine the newer Bitcoin Cash tokens which go under the acronym of BCC. It will mine the traditional Bitcoin and its revised Segwit2x chain itself. Yet it threatened that it will support the rival forthwith should the block size increase planned by SegWit not materialize as scheduled.