In just a matter of hours an entirely new cryptocurrency is likely to be created.
If you haven't be following along, reading the news, or basically been living under a rock for the last couple of weeks, August 1st is the date I am referring to and Bitcoin Cash is the new currency set to be created.
Poof, just like that out of thin air a brand new Bitcoin competitor will be born.
No, this coin won't be Bitcoin and it won't be part of Bitcoin, well other than it's transaction history being the same as Bitcoin's transaction history, but going forward it will be completely independent and separate from Bitcoin.
Some more about it can be read here:
https://steemit.com/bitcoin/@jrcornel/bitcoin-cash-big-deal-or-not
Why will it be created?
Ever since SegWit was signaled and started to be implemented, some of Bitcoin's players were not happy with that outcome.
Their belief is that SegWit doesn't go far enough to solve Bitcoin's scaling problems and believe that a hard fork will be necessary at some point any ways, so might as well do it now.
SegWit is set to increase block sizes from 1 MB to 2 MB. That is nice and all but Bitcoin Cash's block size will be 8 MB. It goes much further in solving the scaling problem.
What happens August 1st?
Well, on August 1st, at 12:20 PM UTC, Bitcoin is set to split into two separate chains.
Bitcoin and Bitcoin Cash.
Holders of Bitcoin will automatically get a corresponding number of Bitcoin Cash.
That means that if you own 10 Bitcoins in your wallet at the time of the "split", you will automatically receive 10 Bitcoin Cash as well.
*Keep in mind that some exchanges will not credit bitcoin owners with the newly created Bitcoin Cash, so make sure you have your Bitcoins on an exchange that will or in a personal wallet.
That sounds great and all, but doesn't that make it more like a Bitcoin dividend than an actual split?
Kinda, sorta, yes.
As of right now Bitcoin Cash is trading for 13% the price of Bitcoin.
That means that as of August 1st 12:20 PM UTC roughly $6 Billion dollars of new market cap will be created basically out of thin air.
Anytime someone gets something for free, what do you think they will do with it?
There is also the possibility that Bitcoin will pull back in a corresponding amount of the value of Bitcoin Cash. Meaning that if Bitcoin Cash is worth 13% of Bitcoin at the time of the "split", the price of Bitcoin will likely pull back roughly 13% from it's price at the time of the split.
There is no free lunch...
Many are thinking that once Bitcoin holders receive this roughly 13% "dividend/split" they will immediately dump it, especially since some of the major exchanges are signalling that they will not support it.
However, the much larger block size of Bitcoin Cash could prove to be very attractive in the future, so much so that at some point if Bitcoin Cash survives long enough it is feasible that we could see the majority of Bitcoin users move over to Bitcoin Cash because of the larger block size and the ultimately faster and cheaper transactions.
The question becomes, will that be enough to overcome the selling that will likely happen when Bitcoin Cash is credited to Bitcoin owners on August 1st?
In order to think about what might happen, try to think about what you specifically will do with your newly credited Bitcoin Cash.
What will you do?
Will you sell for the nice little bonus, or hold for the potential long term benefits that may or may never realize?
Let me know in the comments section below.
Stay informed my friends!
Sources:
http://fortune.com/2017/07/30/bitcoin-cash-fork/
Image Sources:
https://themerkle.com/bitcoin-cash-is-not-free-money/
http://josephhoran.com/what-will-you-do/
Follow me: @jrcornel
Pleeeeeeeeeeeeeeease, tell me this: Should I move my BTC if I store them on Blockchain.info, or will I get the corresponding BitcoinCash amount even if I keep them on there? Also, I read something about Electrum officially not supporting the SegWit, so I don't know where to move them, if we assume I need to. Not much time left. Please help. Thank you! =)))
Blockchain.info keeps your private keys. You need to send to a paper wallet, jaxx, or Kraken asap!
So if I had Bitcoins in Blochain.info - it's too late to do anything? I just lost opportunity to get Bitcoin Cash?
Yes. Sadly yes.
So basically Blockchain will have my part of Bitcoin Cash?
I think that's the jig...
This post received a 3.5% upvote from @randowhale thanks to @gliten! For more information, click here!
Buying Bitcoin Cash would be very risky, but holding free tokens doesn't hurt. I resisted to sell my free ETC for $1 and sold later for $20.
I sold out of ETH awhile back... but you just made me wonder if I have 500 ETC tokens in somewhere... now that would be a nice Sunday surprise! I am sure that I had 92 of them (ETH) sitting in a JAXX wallet on my old phone during the time of the fork. Fuck I gotta pay more attention! The cryptoverse rains more money than one expects is logical or just.
Five years ago, bitcoin was also very risky. (And still is)
.. me just thinking about all these new coins!
You sold your ETC? Sorry for you, man :/
Segwit is a compromise coin. I don't own it. I am buying #BitcoinCash on ViaBTC because I think that it's the real Satoshi token. Strangely though, I am hoping for a devastating drop in #BitcoinCash on #Forkoffday so that I can accumulate much more. Hopefully it falls below 10$ :)
My long term crypto speculations are EOS, STEEM, and Peerity.io (startup), I had to sell my Gridcoin position to get some #BitcoinCash :(
I guess I will have to sell a bit of STEEM and a bit of EOS if #BitcoinCash gets attractive enough. It's a tough call though as I believe in these projects so much. Maybe I can find a little more fiat to stick into the market. Anyways that's my thoughts.
Exactly what I have been thinking about doing. I just ended up buying all the sellout coins the last couple of days. When Bitcoincash drops hard, I'll have to put some more fiat i guess..
What do you do, invest more or keep switching crypro positions?
i might sell mine and buy BTC
Too many coins named BCC! Should have used a different ticker!
do nothing and keep both coins.
That's the safest way. I would expect an initial dump and recovery later on...
Ditto. Its too soon to know what any of this will become. For the most part its been mad money up until now but its starting to add to something interesting and I am enjoying the ride.
Same. I'm just wondering if most people will dump their BCC immediately.
I guess many people will dump immediately...
I am a huge core supporter and Bitcoin with Segwit is Bitcoin THE for me, but I will keep my BCC
https://steemit.com/bitcoin/@michiel/six-reasons-why-i-will-keep-my-bcc-after-the-fork-on-the-first-of-august-even-when-i-am-heavily-against-it
Very informative post, thank you!
Do nothing and keep both coin, but I am not sure if I want to use a private wallet or Kraken, as it could take a long time until I can put my Bitcoin back to the exchanges ...
I'm going to hold my "free" Bitcoin Cash. I've been investing with profits since early 2017, might as well continue to let it ride......I'm curious since Jihan Wu supports this, this is the Bitcoin that McAfee say's will be $500,000 in three years or he'll eat his dick on television?
All I know is to prepare for some volatility.
The Globalist One World Currency Will Look A Lot Like Bitcoin
Brandon Smith | Alt-Market.com
July 28th, 2017
http://www.shtfplan.com/headline-news/the-globalist-one-world-currency-will-look-a-lot-like-bitcoin_07282017
Why is this such a mystery? .... DON'T use the IMFcoin, or the Fedcoin, or the JPMcoin, or any coin they introduce.
That is true...
I'll probably dump it at the slightest opportunity for a quick profit, the future of it is too uncertain for me to risk holding it. Thanks for sharing and making this as clear as day!
Yeah it's a bit too risky ! Not gonna hold it either.
I think many are thinking like this...^
Yeah, the uncertainty kills it for me.
I thought: Nice 14% right away...but then I remember the story of Ethereum Classic and made me think twice...
The long term wins always, maybe is a good idea to unplug for 2 or 3 years hahaha thank you for sharing @jrcornel :)
Holding is a good approach in the crypto universe most of the time :)
Haha yeah I guess that's the safe option ;)
Yeah, I guess you can't expect to get rich over night :)
At the end of the day, protocol improvements (even if you think they are improvements) are not as important as market share. In the real world, the only crypto that matters is bitcoin (BTC) and possible Ethereum. Any interactions wit the world of crypto go through bitcoin and any merchants that accept crypto tend to only accept bitcoin! That will not change on 1 Aug.
I expect a mass dump on 1 Aug as anyone who manages to get their hand son it, sells for either bitcoin or other alts. It may limp on for 6 months or so afterwards but I'm not even convinced of that.
I understand that even the developers of BCC are not sure about it. It was designed to force the block increase in Segwit 2x and if that is achieved, it may well die at that stage!
Time will tell, but I'm not convinced this is the second coming that some are selling it as!
Yes, I think Bitcoin Cash will stay until blocksize is increased to 2mb. So wiser to hold till then
Still not sure if i should jump on the Bitcoin Cash waggon. I see it as ETH classic. It might be very little worth once the dust settles. At current price its pretty expensive still.
I will sell some BTC and use that to buy Bitcoin Cash. I won't sell all my BTC but my hope is people see through Blockstreams attempt to control BTC and buy the fork that takes control away from them.
I'm undecided still. I will see what happens. I had a small amount of bitcoin so look forward to some free Bitcoin Cash appearing in my wallet.
It will not appear in your wallet, you will have to import the keys into the bitcoincash wallet
ah I see. thanks.
The market could be very volatile after people receive their free cash. And i think that this can have some serious impact in the price of bitcoin. I will not be surprised to see the price of bitcoin drop to $2000 in the coming weeks.
I agree with you @adr1an0
Great downs are coming.
The supply hasn't changed. Bitcoins are still harder to get than they ever have been before. I think we will still see a rise. And HOLD your BCC.
Dump the bitcoin cash for LTC.
I am waiting patiently and watching the markets closely. The split will give other Alt coins some chance.
This hype is insane..all that's happening is a new coin being regulated aka controlled. Freedom?
Bitcoin is actually the one that's controlled (taken over by Blockstream), which is why this fork is happening. Bitcoin is "intentionally" not scaling properly, slowing down progress on purpose.. but why?
The true lovers of Bitcoin see through the BS and that's why they have insisted on 8MB+ blocks.
So you are saying that Bitcoin Cash is more decentralized then BTC?
Not only that, It's more secure (fact), has better fundamentals behind it (fact), and has a much better and brighter future (opinion).
I'm very excited about the new bitcoin getting started and things reaching a safe point where we wont be worried about losing our crypto cash.
Got to work on Steemit to make enough money to be able to buy Bitcoins.
I have the same strategy - to make money on Steemit and buy altcoins.
Hope it works for both of us
i hate this happen to bitcoinsorryy to say but bitcoin will still the founder of blockchain nothing can change and all big investor still belive in bitcoin
Google was the 13th Search Engine to hit the market. Do you even remember who the first one was? :-p
I got you point but Bitcoin cash will be disaster and make people confused why not just create new alt coin lol
In my opinion Bitcoin will remain strong although you will see an ex-dividend effect after the fork and you will see people pooring cash back into altcoins. Bitcoin cash will just be another altcoin and we have quite a few of those. Compared to some of those, Bitcoin cash is not nearly as good and we are better selling any bitcoin cash and putting it into Bitcoin or altcoins. Anyways, just my two cents. Cheers!
I am very new in the crypto world, but I bought a small amount of bitcoin with coincorner but was sent information stating coincorner will not support hard fork. Will somebody tell me why these exchanges will not support hard fork.
I moved my Bitcoin from Coinbase, which isn't supporting Bitcoin Cash, over to BitFinex. I will most likely hold onto my new BCC as it isn't a ton of money for me. since I'm playing with "house money", I'll just hold onto it and see what happens.
Maybe sell 50% and hold 50%... could be a good approach
is it wise to hold your money in an exchange? sorry, im new and trying to understand your reasoning
Definitely not long term, I have it on there to get the matching Bitcoin Cash, then I can move them around or reinvest them from there.
I think people underestimate Bcash. I personally will buy the dips, I believe that Bitcoin Cash can easily reach 500$-1000$ after that.
Ya, me too, I am not selling any of my legacy coins, and would buy a few more BCCs when its price is dipping.
I personally think BCC will overtake BTC in 2years and DASH will overtake them all in 5 years.
https://steemit.com/gaming/@vimukthi/how-mmo-and-e-sport-games-can-make-blockchain-mainstream-and-why-dash-would-soar
There is clear uncertainty of what the new BCC will end up doing. I would bet on selling it and converting it to BTC to just add to my investments. It may increase its value long term but short term it will go down on price as many investors will just sell.
Nice Article! Worried about your Bitcoins and where to store them? How to get free Bitcoin Cash? Come check out my blog!
Thank you for this post. It is a good summary of the Bitcoin versus Bitcoin cash situation.
If all Bitcoins are also now Bitcoin cash, then the value of the Bitcoin cash logically reduces Bitcoin by the same amount.
I'm a newbie to cryptocurrencies, but the things that I'm reading don't make logical sense to me.
The proponents of Bitcoin and cryptocurrencies will say I just don't understand, that's fine.
Its weird but im out of btc entirely now and have just been holding other coins. too much faith or desensitized?
meep
Very good article thanks, cheers mike
Hold onto it because if everyone tries to sell it , it will decrease if people hold onto it , there's a chance for success after all these falls this month . We need to hold on tight , the ride is almost over , we will find out if we throw up or not
May be dis coin compit of bitcoin coming few year..
for sure i will sell bitcoin cash and invest all that money to altcoins, altcoins got 1 week of red numbers so i think it will be good time to invest.
Interesting. Which coins specifically?
im thinking of monero , they was 50$ before that bitcoin cash news, and their site traffic is growing everyday from 200k to 800k visits, so more people interested in them , so i think it will be good one .
Good position @investwarrior. If you want to invest in long term think about Lisk and Golem. They have a huge innovation behind coins.
i was at lisk ico last year may , so i got thousand of them )
Oh, that's fantastic. I am trying to get some money on Steemit and then invest in Lisk and Golem.
Lisk price is about 1.8 dollars right now. Not exepencive, but also not that cheap.
if we go by the anecdotal evidence of eth then may be there might be a dip in pricing till the dust settles and the two bitcoin brothers or sisters go their own way and live happily ever after or till another hardfork does them apart. In short over time the sum of parts would add up to more then the initial value. Just a matter of time provided both the babies survive after all it is survival of the fittest and the law of natural selection that would apply here as well
Will this be an ongoing thing? Every time bitcoin gets updated will there another fork? Will there be more off springs of bitcoin? I'm guessing they have not fix the scalability problem with this recent update.
There will be a fork 3 months after segwit...
very great info,awesome post....
thanks for sharing
I am wondering if we could see Bitcoin back down to $2,000 or even lower next week, could be very volatile after people receive their free "cash".
Sell it as soon as it is available and buy back some later when the price will have decreased a lot, just to keep some for the future, just in case ;)
its an opportunity to gain and threats of losing..its all about risk calculation.I will to for alt coin before hard fork...
I will hold tight to my bitcoin....no one can predict the outcome...
I will buy altcoins.
My interpretation is that since Bitcoin prices have been soaring with all the buy activity as people rush to exchange whatever they're holding for Bitcoin, it's too late to bother with worrying over getting some low-value Bitcoin Cash. I was busy wringing my hands in angst about it the last couple days, but I've decided that it's just not something to be so concerned about, and that renewed my sense of calm. I'm new to cryptocurrency, so it's not the first hard fork I've missed, and it probably won't be the last. Life goes on.
Too much uncertainty with bitcoin at the moment. I would dump bitcoin and go for bitcoin cash, it has potentials and most importantly a bigger blockchain and faster transactions..
Not sure if that's a good idea...
I will probably do nothing because I'm
Sell it , if you want it long term , buy it at a lower price with the same amount of money . Nice and easy ;)
OK, but there is no guarantee that its price would go down. Maybe it keeps up climbing. What I would do is to keep my legacy coins, and buy a few more BCCs.
take a look on forums , groups , steemit. Everybody will sell his/her BCC . I could bet it will go down. Btc has a big comunity Bcc not so much.
His writing is very good. I am happy with this paper and it is very useful for me. Read your writing as if I have just been hit by heavy rain after a very long dry season. My greetings from Aceh; @fahrilzubir.