Bitcoin Hard Fork, creation of Bitcoin Cash and its impact on Bitcoin.

What impact will the Bitcoin Hard Fork and creation of Bitcoin Cash cryptocurrency have on Bitcoin?

  • For the last several years, the Bitcoin infrastructure has been struggling to handle a growing number of transactions hence technical experts recommended a new cryptocurrency creation that will solve its back-logging issues.
  • Since then Bitcoin miners and developers opinions were split over their vision on Bitcoin’s technical roadmap for the future.
  • These differing opinion within the community had been a prominent cause of the recent Bitcoin price fluctuations.
  • Eventually, on 01.08.2017, a Hard Fork created a split in Bitcoin resulting in the creation of a new cryptocurrency called Bitcoin Cash (BCH).
  • Although BCH will be based on blockchain technology, however, BCH is technically superior to its predecessor Bitcoin since it offers eight fold increase in transaction capacity and will combat high transaction fees that made mining larger blocks invalid.
  • Creation of BCH from Bitcoin through Hard Fork implies that Bitcoin owner will now own equal quantity of BCH as well (please note a similar event occurred last year as well on the Ethereum platform when a cryptocurrency Ethereum Classic was created).
  • Therefore, this Hard Fork also generated millions of dollars in new value for Bitcoin investors and at the time of writing, BCH is valued at USD 430.78 and Bitcoin is valued at USD 2737.50.

Leave a Reply

Your email address will not be published. Required fields are marked *