Bitcoin has just forked and has created Bitcoin Cash

A new dawn in the cryptocurrency movement has risen as a new player has come to the table. On Tuesday afternoon, 1st August, a fork occurred in the Bitcoin system which led to the creation of Bitcoin Cash. Bitcoin Cash is a result of a move by Bitcoin miners who opened a new block on a new blockchain and have therefore proceeded with the creation of a new cryptocurrency.

The name for this process is a fork. The Bitcoin fork has been expected for a while now and it seems as if it was only a matter of time. A fork happens when miners involved in the cryptocurrency create a new branch, separate from the original blockchain and continue mining with a new software that is not the same as the original one. This means that while Bitcoin Cash works in a similar way to Bitcoin, it is also unique in its own way.

Why did this happen?

Bitcoin, to an extent, has been a victim of its own success. The adoption of the cryptocurrency as a viable unit for the purchase of goods and services led to a massive increase in its use and exposure. Subsequently, as more people began using it, it took up more space and more power was needed to complete transactions. This, in turn, led to a slowing down in the processing of transactions and a solution was needed to address the speed problems that were occurring.

While solutions were proposed, no solution was uniformly accepted and the possibility of a new cryptocurrency to lessen the burden became a reality.

What does this mean for Bitcoin and Bitcoin Cash?

So far, the result of the fork has meant that Bitcoin’s price has taken a hit of about 5%, though this was fully expected. The new entity, Bitcoin Cash, was trading around $460 at the time of writing and had risen to become the third-most traded cryptocurrency behind its parent and Ethereum. It is expected that the price of both will continue to rise and this could be a shot in the arm for Bitcoin as it makes the cryptocurrency more attractive once again.

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