Bitcoin traders may soon be able to bet on their preferred version of the blockchain.
As if a years-long debate over the network's technical roadmap wasn't dramatic enough, Tuesday could see yet another twist in bitcoin's scaling debate. That's when a group of miners and developers say they will go as far as to create an alternative network to prove bigger blocks are the best solution for increasing network capacity.
Called Bitcoin Cash (BCC), the effort will effectively fork bitcoin's existing software and transaction history, and in the process, give every bitcoin user new cryptocurrency tokens on a new blockchain with different rules.
Should users own 2 BTC, this means they'll now be able to claim 2 BCC on the Bitcoin Cash blockchain, a move that could generate millions of dollars in new value for traders.
Not without precedent, a similar event took place on ethereum last summer, when members of that community created a new cryptocurrency to protest a design decision by developers.
Yet if you were expecting that sort of uncertainty to be scaring away traders, according to Ripple gateway operator Rafael Olaio, the end result is anything but. Given the creation of the new network, Olaio and others expect traders to hold steady before claiming their new funds.
What to expect
As for what could happen now, it seems it's anyone's guess.
While miners and developers are claiming a desire to go through with the split, it's still possible that the code necessary to create the break won't be introduced at all. Others worry that if it does go through, it could usher in a period of high volatility that, while benefitting advanced traders, turns off more casual investors.
Investor Vinny Lingham, long known for his bitcoin price predictions, indicated that he'd be keeping most of his capital out of the markets ahead of what he expects will be a "turbulent few months" for the protocol.
"High risk equals high reward but also chance of portfolio damaging losses. I don't like what I'm seeing so I'm going to sit on the sidelines a bit longer," he said.
As for practical advice, Zhou, like others, stressed that traders who want to take part in any trading should withdraw their bitcoin from exchanges on the off-chance they aren't offering support for the new cryptocurrency.
Source: coindesk
Interesting times are lying ahead of us!
I think most investors speculate on receiving some free bitcoin cash at the moment, that is why bitcoin price went up and alts down.
I am behaving anti cyclical and thus bet on altcoins in august. All the best to you !
Yes I think august is going to be a great month for crypto. Everybody is waiting for tomorrow announcement. All the best as well
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