Bitcoin Cash trades above $200 on first day:

in bitcoin •  7 years ago 

 Bitcoin, the world's most famous digital currency, split in two yesterday. So now there are two versions of Bitcoin: The original one and a new type of online money called Bitcoin Cash, which is now being bought and sold at online exchanges.

The new currency was trading at about $200 on 1st of August, and in what might come as a surprise, its arrival has not undercut the value of the original version. As of mid-afternoon, the price of bitcoin proper was around $2,700—not far below its all-time high of just above $3,000. 

 If Bitcoin Cash continues to trade at any significant value, it could create enormous pressure on COINBASE which is the most popular digital currency exchange, to distribute the new currency to its customers. 

 At this time, COINBASE is standing by its controversial decision of last week not to support Bitcoin Cash. This means many bitcoin owners using COINBASE, all of are entitled to receive Bitcoin Cash at a one-to-one ratio, are seeing their new "Cash" sit in a sort of limbo.

One reason for this is COINBASE and others dislike the idea of Bitcoin Cash because it relies on a so-called FORK of the software which runs the bitcoin blockchain, and on which all transactions are recorded.

The creation of multiple forks could undermine the network effects that help support the popularity of bitcoin. A source close to COINBASE, who asked to speak anonymously, also told Fortune that a new currency like Bitcoin Cash is akin to a new product, and it can be time-consuming and expensive to create secure infrastructure to trade it.

The Bitcoin Cash came about after a group of miners, who are responsible for recording bitcoin transaction records, decided to implement a new version of the software that governs the bitcoin blockchain. 

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

wow

Congratulations @joshidwarkesh! You have completed some achievement on Steemit and have been rewarded with new badge(s) :

Award for the number of upvotes

Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here

If you no longer want to receive notifications, reply to this comment with the word STOP

By upvoting this notification, you can help all Steemit users. Learn how here!

Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://finance.yahoo.com/news/bitcoin-currency-trades-above-200-205554839.html