Bitcoin has not been able to evolve the consensus that was needed to implement the technology called SegWit2x, which though has been adopted by key players, still lacked a total agreement.
This has resulted in the launch of Bitcoin Cash, which is rival to the SegWit2x technology. While SegWit2x involves taking Bitcoin’s transaction data out of the block and allowing more transactions to happen that way thus increasing the speed of transactions overall, Bitcoin Cash would keep the data within the block but increase the size of a block to 8MB.
Bitcoin Cash reached a market cap of over $7 bln in less than 48 hours of its total existence seeing the hard fork of the original Bitcoin the third biggest digital currency in the world.
Bitcoin is still miles ahead, with its cap sitting at over $44 bln. Coming in second is Ethereum with a large haul of its own, sitting on $21 bln while Bitcoin Cash’s $7 bln overtook Ripple, with a market cap of $6.7 bln, for third place.
A freshly re-opened Australian exchange has seen a massive uptick in Bitcoin Cash interest as people sell their original Bitcoin to cash in on what has been speculated as ‘the next big coin.’
Blockchain Global, who just re-opened its exchange, the Australian Cryptocurrency Exchange, says that there is a huge demand for Bitcoin Cash as people put in off-market orders.
Speculating on the boom
Sebastian Quinn-Watson, a venture partner for the Australian exchange, says there have been lots of questions and interest in surrounding Bitcoin Cash since they recently reopened their exchange.
“People are selling their Bitcoin positions and buying Bitcoin cash as a proposition that it is the ‘new coin’ that has more value in the future. It’s a bit speculative.”
Considering that the scaling debate on Bitcoin had been raging for years, with threats of a rather large hard fork looming over it, this fork to Bitcoin Cash has been pretty minor.
The fork has not been supported by many mining pools, or even exchanges, as the hashing power sits around two percent for the rival chain.
However, because it is indeed a fork of Bitcoin, there is a shared transactional history between the two new currencies, and as such, holders of Bitcoin are entitled to an equal amount of the breakaway currency.
While Bitcoin has remained relatively stable for what is essentially a huge change in the digital currency, Quinn-Watson still predicts that Bitcoin will drop a little more as people look for fresh opportunities through the hard fork.
The drop should not be more than 10 or 15 percent over the next 36 hours, according to the Australian.
Therefore, users who owned Bitcoin before the fork, and owned their private wallet keys, will have an equal amount of Bitcoin and Bitcoin Cash – with their duplicate balances existing on each Blockchain.