Bitcoin Has Forked in 2 – What This Means For Bitcoin
The event that the Bitcoin world has been talking about has finally taken place. Bitcoin has forked, or essentially split into 2 factions. The major players behind Bitcoin were unable to come to a solution by Tuesday morning that would have kept the crypto-currency a single and unified one. Out of the dust comes the original Bitcoin, or BTC, and the new Bitcoin Cash, or BCC.
For those of you that don’t know, Bitcoin has been around for nearly a decade but is just now starting to be recognized by the masses. The developers of the new Bitcoin Cash ( BCC ) feel that they can bring some much needed improvements to the blockchain technology that might be hampering the original Bitcoin ( BTC ) like slower transaction speeds. In addition, the Bitcoin cash developers feel that if they increase the block size to 8 megabytes from just 1 megabyte will make the platform faster and more scalable. The original Bitcoin developers argue that while increasing the size of each block will increase speed, it will also make the block more susceptible to hacking.
How each of these factions will end up, only time will tell. There has already been some digital currency exchanges that have stated that they won’t be backing the new Bitcoin Cash ( BCC ). This might be devastating to the growth of BCC if many others follow suit. Kraken, a top notch Bitcoin exchange, is seeing lots of volume since the fork and is dealing with the situation in expeditious manner, assuring that all credits in Bticoin cash balances will eventually show on customer reports.
Even though those holding BTC have seen their holdings double since the split, the value of their holdings has not necessarily followed suit. For all intensive purposes the value of your Bitcoin portfolio is still in the same vicinity. As time passes and a clear winner between the 2 factions starts to emerge, the price , or value, of your holdings will reflect that. As to which one that will be, we just don’t know yet. One thing that all the insiders are saying is that this fork will definitely lead to a stronger Bitcoin in the long run after the bugs get worked out and the confusion dies down.
Trading Bitcoin and other crypto-currencies is tricky and you should definitely do your homework before entering the space. Just like any other market, it can be a gamble with both huge losses and payoffs. For holders of Bitcoin who like to gamble in a more traditional setting, you can learn everything you need to know on our Bitcoin and Gambling page.