Bitcoin Cash is Coming, What Will You Do?
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! =)))
The split is already effecting Ledger cold storage wallets. Look at all the options Im given after updating my Ledger wallet to the new firmware. Bitcoin, Bitcoin Cash, Bitcoin UASF or Bitcoin Segwit2x. I dont know what to select.
http://www.FlippyCoin.com is the #1 Cryptocurrency Exchange!
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...
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?