On August 1st (East Time), a new digital currency called Bitcoin Cash, has emerged, it was separated from Bitcoin by a “hard fork”, which we called bitcoin cash fork. This news has caused a lot of controversy in the cryptocurrency community. Although the proponents of the original Bitcoin have resisted Bitcoin Cash and believe that it poses more threats than interests, the relevant scholars believe that its emergence is justified. At the same time, Bitcoin Cash developers believe that regardless of its success, it will benefit users to a certain extent.
Although the debate about the future of Bitcoin has lasted for two years, the emergence of Bitcoin Cash is still very shocking. The total Bitcoin value has reached $47 billion, but it is still a niche product. Proponents of the new currency say this step is necessary if Bitcoin really wants to change the way the world uses the money.
The confusing origins and names of Bitcoin Cash may make it difficult for more people to accept. Pantera Capital, a venture capital firm that invests in bitcoin and digital currency startups, founder and CEO Dan Morehead said: "Bitcoin is too famous, and now it is divided into different categories, which will make regulators and consumers confused." Morehead claimed that he is neutral on this issue.
What makes this situation even more confusing is that not everyone who holds Bitcoin will receive Bitcoin Cash immediately on August 1. Some well-known Bitcoin storage service companies say they will not recognize the new currency. If customers want to buy the currency, they must transfer their business.
The debate among Bitcoin supporters stems from their disagreements about the blockchain capacity limitations that Nakamoto has designed and how to deal with them. The Bitcoin network can only process about seven bitcoin trading per second, while traditional financial networks (such as Visa) can process thousands of transactions per second.
Bitcoin Cash is a variant of Bitcoin design with larger blocks that allow for more transactions at specific times. Its proponents say that their project is necessary because it is not enough to expand the capacity of Bitcoin by the way it is currently available. Former Facebook engineer Amaury Séchet developed the code for the emergence of Bitcoin Cash. He said: "As far as the current situation is concerned, everyone's differences are irreconcilable and forks are inevitable."
The holder of the bitcoin before the fork is recorded as having cryptocurrency on both blockchains. Some Bitcoin exchanges said they would support Bitcoin Cash and customer accounts holding this new currency, but some would not.
The Bitcoin Cash value and its impact on the digital currency sector depend on the number of investors and users moving from traditional Bitcoin to this new currency. Emin Gün Sirer, an associate professor of research on bitcoin design, said Bitcoin Cash's adjustments to Nakamoto's original work helped solve the capacity problem of the currency. According to our observation, the emergence of this situation is reasonable. But more importantly and even more tricky is whether there are enough people to use and invest in Bitcoin Cash to make it grow. Sirer said:“The key is how much economic benefit this new currency can bring.”
As to whether the success of Bitcoin Cash will damage the original Bitcoin ideal? The answer depends on who you are asking. Supporters and opponents have different opinions about this, so some people who want to do business on Bitcoin are frustrated by this ongoing debate.
Although the debate about the future of Bitcoin has lasted for two years, the emergence of Bitcoin Cash is still very shocking. The total Bitcoin value has reached $47 billion, but it is still a niche product. Proponents of the new currency say this step is necessary if Bitcoin really wants to change the way the world uses the money.
The confusing origins and names of Bitcoin Cash may make it difficult for more people to accept. Pantera Capital, a venture capital firm that invests in bitcoin and digital currency startups, founder and CEO Dan Morehead said: "Bitcoin is too famous, and now it is divided into different categories, which will make regulators and consumers confused." Morehead claimed that he is neutral on this issue.
What makes this situation even more confusing is that not everyone who holds Bitcoin will receive Bitcoin Cash immediately on August 1. Some well-known Bitcoin storage service companies say they will not recognize the new currency. If customers want to buy the currency, they must transfer their business.
The debate among Bitcoin supporters stems from their disagreements about the blockchain capacity limitations that Nakamoto has designed and how to deal with them. The Bitcoin network can only process about seven bitcoin trading per second, while traditional financial networks (such as Visa) can process thousands of transactions per second.
Bitcoin Cash is a variant of Bitcoin design with larger blocks that allow for more transactions at specific times. Its proponents say that their project is necessary because it is not enough to expand the capacity of Bitcoin by the way it is currently available. Former Facebook engineer Amaury Séchet developed the code for the emergence of Bitcoin Cash. He said: "As far as the current situation is concerned, everyone's differences are irreconcilable and forks are inevitable."
The holder of the bitcoin before the fork is recorded as having cryptocurrency on both blockchains. Some Bitcoin exchanges said they would support Bitcoin Cash and customer accounts holding this new currency, but some would not.
The Bitcoin Cash value and its impact on the digital currency sector depend on the number of investors and users moving from traditional Bitcoin to this new currency. Emin Gün Sirer, an associate professor of research on bitcoin design, said Bitcoin Cash's adjustments to Nakamoto's original work helped solve the capacity problem of the currency. According to our observation, the emergence of this situation is reasonable. But more importantly and even more tricky is whether there are enough people to use and invest in Bitcoin Cash to make it grow. Sirer said:“The key is how much economic benefit this new currency can bring.”
As to whether the success of Bitcoin Cash will damage the original Bitcoin ideal? The answer depends on who you are asking. Supporters and opponents have different opinions about this, so some people who want to do business on Bitcoin are frustrated by this ongoing debate.