Bitcoin Cash, big deal or not?

in #bitcoin4 years ago (edited)

Cointelegraph reported that not even Bitmain, the original creator of Bitcoin Cash, is sure whether they will support the Bitcoin Cash hard fork or not.

If you were worried about the possible coming HF on August 1st, this should at least give you some reassurance that even if it happens it isn't much to be worried about, at least at first. 

Even the main idea men behind it are not sure they want to go through with it.

Instead Bitmain said that creating Bitcoin Cash was only done as a precautionary measure in case BIP 148 activated. Well, BIP 148 has been avoided so Bitmain is saying that they are not sure if Bitcoin Cash is even a good idea. 

What is Bitcoin Cash?

Bitcoin Cash is a hard fork that is being developed and launched by a few mining pools in response to the SegWit implementation on the main chain. 

The goal of Bitcoin cash is to mine 8 MB blocks, which would be 8 times larger than that of Bitcoin, and to also maintain a network without using the SegWit fix. 

SegWit is seen as a temporary band-aid by some and somewhat goes against some of the core principles of what makes Bitcoin, Bitcoin.

SegWit is likely to increase the block size to 2 MB, with the possibility of holding almost 4 MB of transactions in the most optimistic case. 

Even then, Bitcoin cash blocks would still be 2-4 times larger than even Bitcoin with SegWit activated.  

Is there reason to be concerned?

Yes and No.

It is becoming clear that many are not recognizing Bitcoin Cash as an official part of Bitcoin but instead are classifying it as a separate coin.

Specifically, Coinbase has come out and said that it does not intend to interact with the Bitcoin Cash blockchain.

That is a big deal as Coinbase is currently the largest wallet operator and one of the largest exchange operators of Bitcoin.

Slush Pool also had this to say:

"We want to let you know, that we currently have no plans to support the emerging Bitcoin hard fork called Bitcoin Cash (BCC) scheduled for August 1st. As for now, we do not see a real demand from miners and the costs of creating and maintaining a separate Bitcoin Cash infrastructure would be too high."

That is great news, but there is one section that really sticks out to me...

"As for now..."

Even if Bitcoin Cash doesn't gain a lot of traction at first, the 8 MB block size is going to be very alluring as Bitcoin attempts to scale.

Soon the 2 MB limit will become a problem again and we will be back to the drawing board.

At that point the creators of Bitcoin Cash are thinking people will slowly start to migrate over to Bitcoin Cash.

In Conclusion...

While it might not really be a big deal at first, there is always the chance that people start to flock to that chain in the future when scaling becomes an issue yet again.

There is also the possibility that Bitcoin Cash dies on the vine long before the 2 MB block limit becomes an issue again with Bitcoin, which would mean an entirely new proposal would have to come about at that time to solve the new scaling issues...

Either way, it is an interesting time to be alive.

Stay informed my friends!

Sources:

https://cointelegraph.com/news/slush-pool-will-not-support-bitcoin-cash-in-august-1-hard-fork

Image Sources:

http://www.investopedia.com/news/bitcoins-price-falls-after-group-says-it-will-activate-hard-fork/

https://www.betcoin.ag/bitcoin-hard-fork-approaching-what-are-benefits

Follow me: @jrcornel

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Why not try all three? Bitcoin United is Bitcoin on the BitShares blockchain. Like BCH, it belongs to Aug 1 Bitcoin owners but it runs at light speed (3 second blocks) and is scalable to infinity when EOS comes out.

This is the only thing that keeps Bitcoin relevant in the long run - a multi-platform upgrade strategy.

The Third Bitcoin is the one to Watch

Free money is always a big deal in my world. So yes!!! Get bitcoin just to earn free BTC Cash!!!!

We will just have to wait and see after August 1st it seems (I think BTC is going to dip from those buying into to BTC just trying to cash in on BTC Cash) at least temporarily.

TL;DR = HODL BTC FOR MAXIMUM GAINS.

It's really hard to predict on what is going to happen , if it's going to be the same story as what happened to ETH than people holding BTC are in for a treat.

Well, if you have 1 BTC now ($2700) and after the fork you have 1 BTC and 1 BCC but 1 BTC = ($2300) and 1 BCC = ($400), you'll really have the same purchasing power.

That is not to dissuade you; this is exactly what I am doing :P Just bear in mind, the market will likely adjust such that the $$ in BTC is just split. What we need is more of that tasty mainstream revenue up in here.

'Free money' depends on whether BTC and BCC together will be worth more than BTC now under equal circumstances.

However, because BCC at least seems a try to scale Bitcoin, it at least gives the market an idea of how the chosen solution works in practice. That will provide interesting feedback for other Bitcoin camps.

Very interesting, thank you. I hope BTC will win

it has won already. no doubt.

lol yeah early adopter are all winner here but the difficulty is to stay a winner ;)

do what your name implies and it´ll work out :-)

If anything, we should be happy to have a competing bitcoin, with a different solution to the scaling problem that has been crippling bitcoin for years...

Good point. It seems a HF is necessary at some point, whether be it now or in the future.

Agreed but there would be no scaling problem had Blockstream not intentionally prevented a block size increase. Increasing the block size is the intended way to scale bitcoin. There was time bitcoin transactions were almost free and instant. Now I pay heavy fee's and wait minutes to hours for coin to move. All this is a result of Blockstream working to cripple bitcoin so they can profit by offering a private centralized solution.

We are witnessing a 'voting event'. Indeed exciting that new ways will be tested for the scaling issue. It may get messy, but this is Bitcoin (=free market).

I guess it's best to hold the private key and keep Bitcoin safe... Let's the market decide

The sell off will happen so fast that only a lucky few will get even close to what the bcc futures is trading at. It wont be worth the risk sending your real bitcoin to an exchange to cash out bcc for peanuts! Nothing is free.

Bitcoin

Bitcoin Cash(somewhere in China on August 1st 2017)

This reminds me of the whale they blew up in Oregon. The chunks rained back down injuring some as they ran for survival. A parked car over a quarter mile away had it's roof flattened.

The more you know! I bet somewhere in the future, aliens are watching this thinking we're such primitives

Just shows you, when you try to stick a fork in the big whale you get shit spewed all over yourself.

1st of August then :-D

Haha that's pretty funny.

There´s just one powerful thing outhere. And no fork is going to replace it.

Again, nice one. I actually think people who get in BTC now by selling altcoins are in for a nasty loss. I explained it in my blog yesterday as well. Check it out if interested:
https://steemit.com/bitcoin/@attalis/3-reasons-why-buying-bitcoins-now-from-your-alt-coins-is-a-losing-trade
In any case thanks for the interesting read!

Yes, I think so as well. I think the market will likely move too fast for them to realize any gain from that strategy. By the time they get out of Bitcoin and back into the coins they sold, they will be paying higher prices... that is my guess at least.

Exactly my thoughts too, no doubt we will see the reactions next month.

Just read yours and I basically agree. Would add that the "dividend" could be priced a lot closer to zero than most expect.

And now if Alts start to rally into the 31st, they all get more expensive to buy back even before hand. 😵

yeah good point. thanks for the comment!

Therebwill probably be a happy few that get the timing exactly right but to me it seems it will not be very easy to get rid of BCC 'earned' that easy. After all, for every seller there's a buyer. Where will deep liquid BCC markets arise spontaneously?

i buying bitcoin and tether(that way i can trade immediately when bitcoin settle down again)

I have a feeling a lot of people are going to try and cash in on BCC and its really going to hurt Bitcoin for a couple of weeks... that is until everyone dump BCC and tries to get back into BTC!

Prepare for a wild roller-coaster ride everyone!

People trying to dump BCC should have no effect on BTC - they are separate blockchains as a hard fork. Unless you are saying people will sell all their BTC to speculate in BCC which seems unlikely. The fact is BTC can go up and BCC can go up. Bitcoin is getting a bit more distributed and traded by a large number of people so I doubt "whales" can manipulate it at will. Would be interesting see what whales exist in bitcoin. Even if someone controls one million bitcoin that is less than 1/16 th of the total supply now.

It's going to be an interesting few weeks/ months! If everyone is holding btc just for free BCC and intend to sell, then BCC will drop like a stone as soon as it's live! That will give miners no incentive to mine it, exchanges no incentive to hold it and it will die out!!

That could happen. Hopefully the speculators in BCC futures provide some buying in BCC.

I'm just going to hold my bitcoin and not worry about it, hopefully nothing major happens

That depends on how your hold your bitcoin... if you don't have access to the private key directly or through a hardware wallet seed you miss out on this bitcoin cash "dividend" from bitcoin.

I had no idea about Bitcoin cash until now. Thanks for the info @jcornel. Upvoted.

I plan to keep a close eye on the new version, 8mb sounds pretty good.

Bitcoin cash became another alt coin.

Yes Bitcoin cash will just be another alt coin. Question is will it be better than the others like ltc, dash or eth? It think it does not

But it could become an important altcoin. No one knows. That makes it exciting.

I think it's the right time to invest in ripple, ethereum and lite coin, prices of these crypto will rock in August. Ripple ethereum are down now, so buy immediately

Where's Bitcoin Cash going to get its hashing power to match the diff?

It'll be the first coin to start out with a frozen blockchain! 😧

WIth BTC in the name, i'm sure they can get enough contributors to keep it alive.

Thank you! Interesting time to be alive is right!!

i think dont many effect segwit on btc

There's no such thing as a free lunch. These people who buy BTC at $2700-$2800 are going to get dumped on hard, by both whales who'll quickly dump BCC, and then by those same whales who will then proceed to cash out their BTC. This is gonna be fun to watch.

BCC is a separate blockchain selling it has no direct effect on BTC...And yes everyone holding BTC is getting a free lunch. I've had a few free lunches in my life - they do exist...

Well said, I really like this that you've laid out. And I definitely share the viewpoint with you. I also hope to leave my legacy here on steemit, and what I share here is what I would want to be remembered for. I think we can all look for something new! Thank you for being here. :)

Yes I had receive the notification from coinbase that are not willing to support bitcoin cash, but still is not clear to me how I will be affected. Just in case I moved my money to another wallet.

Dang man you get upvotes like a boss!

Here's a vote for you :-)

Nice Article! Worried about your Bitcoins and where to store them? How to get free Bitcoin Cash? Come check out my blog!

Thanks for sharing...👍

I think the final result is going to be a hard fork that will not be a real menace to BTC in the short term but it will not be all bad to have this latent "competition" so BTC does not take so long to make a decision to scale.
Waiting 3 years to scale again will not be feasible anymore because BCC (or BCH) will be there to remind everyone not to get sleep for too long.

Not to mention with platforms like EOS coming out that tote significant improvements on transaction speed and scaling, there's the slightest chance BCH may actually be a more eligible competitor. In a world of 7 billion people and 1 million transactions a second, scaling matters.

oh gush!!
upvoted cause this useful post but....
what can we do then ??!! will I lose all of money :( :( :(
@jrcornel

some coin do survive after segwit and make it to the one of the top altcoin right? for example ethereum clasic and monero. bitcoin cash will be another altcoin in exchanger. if it does happen, lets see if its powerful. well if not, we still in a better shape .

Great post , Upvoted & Followed

Very good information friend, thank you very much kind enough to share info to us all

better move to wallet which support the fork, e.g. coinomi. I just open a new one and planning to transfer.
https://www.bitcoincash.org/

Coinomi is a solid wallet, should support monero soon as well.

I think we should wait and see how market goes and not jump from one coin to another.

Geez! These days look an eternity to me hahaha I would have preferred to go to a cave until 20th of August or so when all this noise is over.

I'm here for the long term anyway, but still, you can't avoid to being pending on all these news. Thank you for sharing @jrcornel, at least I can be calm the first weeks after the 1st of August hahaha

Thanks for explaining in brief. But one thing i noticed there is no surety in crypto-market . Any rule can be changed any time. More than 90% people are trading only the basis of news/ youtube videos. Very few are trading on technical analysis. But sometime they also getting fail. Because crypto-market is controlled by developers / miners. whenever they need profit they are turning out the market in seconds. No matter it is bitcoin or altcoins.

some big going to happen in coming days

Thanks for sharing such a lot of information. Nothing can be predicted, lets wait and watch.

@jrcornel My concern with bitcoin cash is that as soon as the HF occurs and people holding BTC get an equivalent amount of Bitcoin Cash on Aug 1st (on those wallet services supporting both coins), a lot of people will sell Bitcoin Cash, causing it to plunge. While that may be a good opportunity to pick up the coins as investment, I would hesitate because the new, smaller market cap coin would be very susceptible to 51% attacks and pump/dump operations. Your concern about the Bitcoin cash may not survive till the 2 MB block again becomes a problem is also very valid. Thanks for this article with a heads up of possible outcomes of the Aug 1 HF. Upvoted.

I request you to visit my latest blogs when you have some free time. You valuable comments and feedback will be very much appreciated. Thanks

Most people will just sell bitcoin cash. It is effectively an altcoin. Is it any more risky than about 800 other altcoins and tokens? Anyone's guess.

hey @jrcornel. Two questions! :)

  1. I think i read somewhere about the block size increase in October. Is that still an option Or was it ruled out with segWit?

  2. If i understand correctly, bitcoin cash needs to get miners to sustain the network? If there won't be enough of miners, than the fork should die?

A very good post and quality greetings from @abupasi.alachy

Yes, big deal

for now its all speculation, we will know is it worth it or not after august fork. Now all sells altcoins and invest for bitcoin and bitcoin market dominance is ` 51.7% , but its all speculation, we dont know will bitcoin cash be big deal or not.

If you forget the link to bitcoin and the hard fork and just view bcc as a new currency about to launch, it has a lot of publicity, futures selling at over $400 and is available for free. So yes its a big deal.

Cool I want Bitcoin cash ! Nothing is free in this world.

bitcoin love!!!

Thank you for the news!

I think many folks are gearing up to sell the resultant BCC for more BTC

bitcoin cash has to be supported by third parties in order to compete with bitcoin

Bitcoin Cash is just another crypto stunt by miners. Another stunt to keep people interested in Bitcoin as a lot of alt coins out there. This coin will do nothing except sold out by everyone the very first day and will increase the price of Bitcoin wiith same amount. I mean come on, people are just flocking for Bitcoin Cash, rather they should invest in Altcoin in these time. They could easily get the same benefit from Altcoins.

Another way of seeing this is that Bitcoin is so stable, that rogues have to hard fork it in order to push through major changes. No special treatment for lobbiest or favoured parties. Bitcoin, the Honey Badger, does not care.

I think the value of bitcoin (BTC) will rise a fair bit after the fork when all the people selling bitcoin cash (BCC/BCH) to buy bitcoin (BTC) and causing bitcoin cash (BCC/BCH) to drop to almost nothing but may rise again but no where near the level it is now

I m so worried about that
Bitcoin hard fork
@abutaleb365

It feels impossible to predict what's going to happen with bitcoin cash. I'm not even gonna think about it until August... although it does seem like a possible long-term value investment once the 2MB blocks get too slow... like you said in your post.

It is certainly interesting but I feel like there will be more interest in it than people expect. I think Bitcoin will come out strong after the Segwit implementation but also I think Bitcoin Cash will get attention. I fully expect it to be a top 10 Crypto on CoinMarketCap so people will be looking at it. Then if it is on the exchanges and all that then it will live on.

Honestly it is kind of the most exciting thing that has happened in the Bitcoin space for me.

thank you for this post it is a great job

BCC, although it may have some advantages over BTC, also creates more confusion and, I think, is hindering Bitcoin's ascent.

bitcoin cash will be supported with no doubts... greed should never be underestimated.

Hey thanks for the info and now i understand this bitcoin cash thing,thanks mate. :)

Have to wonder if there will be a selling frenzy once people get their Bitcoin cash, wondering if now is a good time to sell and get back in after August 1, but there is the fear of being shaken out.

Thanks. I'm currently waiting for my pending Coinbase withdrawal to an Electrum wallet just in case BCC has any value after the fork. It's been almost 2 hours now and still pending. I'm just a little more than annoyed by this.
Update: the transfer finally went through after a few hours. Phew!

Where do I put my paper wallet funds to get some BCC?

Great timing post!

Thank you. I upvoted 100%.

I think, developers and enthusiasts of bitcoin cash have good points in terms of scalability. However, I don't see these people thinking about anyone else but them. They haven't known how to reach their counterpart with their points of view. I won't deal with that, just for the hide interests these people have shown.

Introduce my name @ata27. I want to ask, why every time I post, my post is not much paid.
Can you help me. @jrcornel

How can i have that bitcoin...? @jrcornel please help me to find the bitcoin..

Please follow me back and upvote me @yusnadi

Of course the big players such as Bitmain are going to play dumb when it comes to Bitcoin Cash, and why wouldn't they?

Their goal is to get everyone to sell their Bitcoin Cash, so their vested interests can all swoop in and buy it all for themselves on the dirt cheap.

Wake the fuck up people... you're being played!

It would be perfect that we could live normally by working on steemit.

Thanks for this explanation !

I think there will be no problem with the SegWit and we won't even need this Fork. We don't have to worry at all !

Just have a seat and watch the market to make the best transactions we can ! Because it will bring tons of oportunity to make some cash, Let's Charts friends !!!

great article.. I am waiting anxiously .. I think nothing major will happen. but never know..

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