Bitcoin Has Forked Into Two Separate Currencies

Discussion in 'Alternative Thought Forum' started by Helios, Aug 2, 2017.

  1. Helios

    Helios Apprentice Premium Member

    Original Poster
    Lots of stuff going on with Bitcoin this week. I'll try to clarify the situation as best as I understand it.

    There's been a civil war going on in the bitcoin world. Bitcoin, which is now over 10 years old, is having difficulty adapting to its recent surge in popularity. The problem is that currently, Bitcoin underlying code limits its to seven transactions per second. Compare this with Visa, that can handle about 2,000 transactions per second. Do you see the problem? This will make millions of people trying to buy gum and soda at gas stations with Bitcoin a very time-consuming ordeal.

    So, two separate groups have emerged on how to handle this problem.

    The first group wants to upgrade the original Bitcoin (BTC) by implementing something known as Segwit2x, which will move some of Bitcoin’s transactions outside of the block and onto a parallel track. It is thought that this should allow more transactions to take place in a shorter amount of time.

    A second group has created a new rival currency called Bitcoin Cash (BCH). Instead of moving transactions to s a separate track, Bitcoin Cash will increase the size of each block to 8MB.

    Bitcoin Cash is getting some resistance from "classic" Bitcoin wallets and exchanges, but some have stated that if BCH proves to be popular, secure and stable, then many of these companies will begin to support it.

    Right now if you have private keys for Bitcoin, you can redeem your free Bitcoin Cash, but from what I'm hearing, it's best to wait a little while until a safe and stable wallet has been developed.

    If you have your Bitcoins on a online wallet or exchange, that site is going to hold the private keys and it's too late to move your Bitcoins to a private wallet, so you'll have to check with the company that holds your coins to find out if you can redeem your Bitcoin Cash.

    Here's a really good article outlining everything in much more detail.

    Bitcoin Cash: Price of new currency rises after bitcoin's 'hard fork'

    It's important to note that this isn't the same as a stock split, and here's why:

    Why a Bitcoin Fork Is Not a 'Stock Split' - CoinDesk

    Essentially, as with all cryptos, the whole thing is one giant gamble. Bitcoin and Bitcoin Cash are now two separate currencies, as different as Ethereum is to Monero. Bitcoin may fail while Bitcoin Cash takes over. Or, Bitcoin Cash may burn to the ground with the original Bitcoin standing over its ashes. Or, both may thive; or, both may fail.

    Who knows what the future holds?