A bitcoin split sounds pretty ominous for people who are still very unsure about the cryptocurrency that seems to be sweeping the world. For people who have little faith in cryptocurrencies it may seem like a validation of their skepticism but such conclusions may not be warranted yet.
The bitcoin split in question refers to the expected Bitcoin “hard fork” that is meant to take place on August 1. It does not, however, mean that the cryptocurrency is in any real danger, in fact the value of bitcoin seems not to have been severely affected by the announcement of the bitcoin split.
Here is all you should know about the bitcoin split ahead of Tuesday;
- Bitcoin cash is the big deal in the Bitcoin split and it is simply a slowly rolling upgrade to the current Bitcoin network that should make things move far more quickly on the network.
- Bitcoin cash is the implementation of Bitcoin Improvement Proposal (BIP) 91 or BIP 91 and the move is supposed to put Bitcoin on the path to support SegWit2x, an improved method for managing transactions.
- It will not affect anyone who is using an exchange that is explicitly in support of the Bitcoin Cash or anyone who owns private keys. For people keeping their bitcoin on an exchange, like Coinbase, that does not support Bitcoin Cash, then it may be wise to transfer your bitcoin immediately unless you don’t want to deal in Bitcoin Cash.
- All holders of Bitcoin are meant to recieve the same amount of Bitcoin cash on Tuesday, in theory.
- Bitcoin is expected to remain unaffected by the creation of the new cryptocurrency. David Morris wrote on Fortune that “A futures market for Bitcoin Cash has already emerged, and currently values it at around 13% of Bitcoin’s price. That means that when the split happens, something like $6 billion in new market value will be created from thin air.”