Another week has passed with so much happening in the crypto world. The headlines were dominated by the Bitcoin hard fork that finally happened on 1st August, 2017. This move was unprecedented and opened a new chapter in the Bitcoin’s future.
The Fork finally happened
Bitcoin Cash (BCC) was the name of the new forked currency as opposed to the Bitcoin (BTC) and it has since hovered around the $400 mark while Bitcoin’s futures have taken no noticeable decline at all. Maybe the market had already corrected itself heavily to brace for the hard fork.
How does a fork work?
The way a fork is expected to work is that instead of creating a new blockchain and new currency altogether, Bitcoins users develop an identical, alternative blockchain and declare independence from the rest and lay out future plans. All past directions are completely identical to the previous bitcoin ones but future is different and thus it is regarded by many as a renegade Bitcoin. While the approach has certainly caused confusion for that part of the blockchain, it is not entirely without reason.
Why did the fork happen?
As we know, Bitcoins are not centrally hosted or managed by someone. So, the future decisions regarding its blockchain, transaction and mining needs to have a complete consensus among stakeholders and miners of the popular cryptocoin.
Now that is where the problem started. The developers had launched an update called BIP 91 that aimed to increase the block size for speedier transactions. Since it was a revolutionary move, many other developers and Bitcoin owners opposed it.
Since there was no consensus and a seemingly majority wanted to implement the new changes, a part of blockchain owners eventually decided to separate from the main bitcoin altogether. While separating from the original system had many risks associated with it, there are also many opportunities for the forked coins. They can become a special bitcoin and that is where things get interesting.
The bitcoin fork happened exactly when Bitcoin was having major upgrades due to the BIP initiatives. In a way both are bitcoins and the original bitcoin is actually different from its history due to the upgrade while the Bitcoin Cash is the very same blockchain with the same transactional protocols involving same block size. For some of you, it might be really confusing but don’t worry.
It is just like as if Facebook got a user interface upgrade that they thought was better but the previous version along with the database was saved and published. Now we have a same-face split version with relatively fewer users and the same system and we have a new-look main facebook that not all people can come to terms with. Also, many major blogs refuse to use the split version. Which one would you choose?
Coinbase refuses to deal with BCC
Right now, Bitcoin Cash is not looking good with major coin providers like CoinBase having come strongly against the fork and have refused to deal with the Bitcoin Cash users for a while at least. If your bitcoin was in that part of the blockchain that got separated and you had it on Coinbase, you are out of luck for the time being. If you held your own coins in the form of cold storage or any other option, your coins are safe and you can access the new Bitcoin Cash blockchain here.
Just to be clear, this is no attempt at stealing your bitcoin cash from Coinbase but rather shows the struggle in the aftermath of the fork. They need to update their system and many are the opinion that they are doing it for discouraging future forks. Well, they might be right about this part.
Can BCC Last?
Bitcoin Cash in all practicality is just another modified cryptocurrency. But, it can easily make a place of its own and stand out in the crowd. The reason behind this is that it wasn’t made from scratch. It is historically attached to the bitcoin blockchain and even though other currencies have forked from the bitcoin before, they will never be able to match the value of the Bitcoin cash.
The $400 price for BCC is significant even though its users are finding it extremely hard to trade it. With this valuation, the total market cap of BCC is close to being the fourth largest in the market! Such is the power of the Bitcoin.
But, expect it to drop significantly when it will be available for trading across the board. There is no liquidity in the market as well. Now the price of the bitcoin cash’s future is extremely hard to predict but there is increased optimism that this time, the fork will work and draw attention.
Is there room for two Bitcoin’s in the market…who knows?
Other news in Crypto
No week in cryptocurrency would be finished without some guy telling us it is all a bubble and it will burst anytime soon. This new hocus pocus from the Financial Times has once again tried to predict that the bitcoin and cryptoworld is going to fail.
The reason they are giving this time around is that Bitcoin and other alternative currencies are mirroring the models of banking crashes of the past. We know when that happened. Once in 1929 and the 2008. They were the biggest banking crisis in history and changed the face of the world as we know it.
But, why just target Bitcoin? According to other reports, the stock exchange and banking sectors are going to sink soon enough as well since they are too following the previous crash trends. So, on one hand we have old, defunct and slow currency systems that have failed before and might fail again. On the other hand we have the future of the currency that is decentralized, fast and dynamic. It might overinflated but it is not going anywhere in my opinion.
Cloudwith.me has got a great ICO in which they are offering in exchange for a stake in a futuristic distributed cloud computing services network. Their aim is $300 million and they want to install grids across the world in order to realize this dream. Is the timing ripe for a real cloud computing company to rise from the current swamp?