Bitcoin faces split, clone digital currency a possibility

Adjust Comment Print

As to what they even want, the developers want to limit the size of the blocks in order to make hacking less of a threat. These nodes are what facilitates messages to be sent across the Bitcoin network, maintaining continuity in the blockchain.

The blockchain is a shared online ledger of all bitcoin transactions and has spawned a range of financial and business applications. This is because cryptocurrency wallets will be treating the hard fork in a different manner.

A similar move had been expected to happen two weeks ago, but was averted when developers and miners agreed on a software upgrade called the Bitcoin Improvement Proposal (BIP) 91. Coinbase's decision against supporting the new version, however, means its customers will not receive this benefit.

[W] e chose to temporarily stop accepting bitcoin deposits and withdrawals at each exchange due to the possibility of the branching (split) of the bitcoin protocol.

If you own Bitcoin but don't control the keys, then it depends on whether you've chosen to keep your bitcoins on a Bitcoin Cash-friendly platform or digital wallet. The thing is there's no free money anywhere.

At the moment, BCC has an estimated 0.26% support of the total bitcoin mining hashrate and as of the beginning of the week, was trading at 12% of bitcoin's value.

Best is to stay out of the market till the volatility and confusion subside. Experts are now advising to avoid making any Bitcoin transactions until the future of Bitcoin seems clear.

Meanwhile, Ethereum, rose to $229.07, up 14.82%.

That's one reason the community-supported website had warned users not to accept any bitcoin up to two days prior to Monday's deadline and to wait for confirmation the situation had been resolved before trading again. There are two main schools of thought. Those who have been backing this fork believe that it's good that Bitcoin Cash has been created and that it's going to address some issues related to the Bitcoin network that people have been facing, such as very slow transaction speeds.

Earlier this week, bitcoin analyst and Civic CEO Vinny Lingham stated, "If I were running a hedge fund, I'd buy a ton of bitcoin and short them simultaneously".

Others beg to differ.

"Bitcoin cash has a chance to become the dominant cryptocurrency contingent upon its ability to gain trust and support from both current and new players as well as security of its network", he said.

And where there is confusion there is opportunity for bad actors. Furthermore, within the company's user agreement there is a part on fork protocols which states that the exchange has discretion in supporting forked currencies, or not.

Last week, the group behind Bitcoin Cash (BCC) said, "On August 1st, 2017, We the People will breathe new life into Bitcoin".

One of Voorhees' Tweets references a YouTube video from the account Chronos Crypto on the hard fork change. Besides, as a general rule, bitcoin holdings should not be kept on exchanges, except for the amounts being actively traded.

The Blockchain Education Network's bitcoin airdrop began as a small event held outside of the main library at the University of South Florida past year, for which Alberto Jauregui hid paper wallets throughout the campus.