Bitcoin + cash? Aren’t Bitcoin and Bitcoin Cash the same thing?
Bitcoin Cash is peer-to-peer electronic cash for the Internet. It is fully decentralized, with no central bank and requires no trusted third parties to operate.
It sounds like the Bitcoin we know, but the answer is no. As of August 1st 2017, a small group of miners is about to launch a Bitcoin “fork” called Bitcoin ABC (Bitcoin Adjustable Blocksize Cap) or Bitcoin Cash (BCC).
Here is how the Bitcoin Cash team introduces their product:
A group of miners, developers, investors, and bitcoin users will upgrade the Bitcoin protocol as specified by the User Activated Hard Fork (UAHF).
Those who do not want to follow our lead are free to use whichever chain they like. Miners implementing the UAHF will safely split away, creating a new version of Bitcoin called “Bitcoin Cash”.
All current Bitcoin holders will automatically own Bitcoin Cash. The existing ledger at the time of the split is preserved, thus users retain any balances they had before the split.
Bitcoin Cash brings sound money to the world. Merchants and users are empowered with low fees and reliable confirmations. The future shines brightly with unrestricted growth, global adoption, permissionless innovation, and decentralized development.
These ideals can be achieved, but it depends on you to succeed. We need the support of miners, investors, and users like you. Join us to help achieve Satoshi’s original vision of Bitcoin as Peer-to-Peer Electronic Cash.
Why BCC and what does it do?
First of all, some investors and miners want to avoid SegWit – BCC eliminates it. Secondly, they want a block size increase that would contribute to the cryptocurrency growth – BCC increases it to 8MB.
In addition to that, BCC minimizes user disruption, and permits safe and peaceful coexistence of the two chains, with well thought out replay and wipeout protection.
Finally, BCC introduces a new way of signing transactions. This also brings additional benefits such as input value signing for improved hardware wallet security, and elimination of the quadratic hashing problem.
Where to get BCC from
The interesting (and unclear) part is if you already own bitcoins, you can get the equivalent quantity of BCC from partner exchange/wallets such as Kraken, ViaBTC, Ledger, BitcoinABC and more.
At this time, the BCC is about $360 per unit but take a look at coinmarketcap.com to get the current price.
Conclusion: Surprise, surprise
A split is about to happen and it’s a mess already. Bitcoin Cash announcement leaves us with a lot of questions. If you have bitcoins in a third party wallet, act before August 1st because after that, you’ll have to conform to the rules of your “landlord” regarding which one of the branches they’ll be using.