At 12:20 UTC (17:50 IST) on Tuesday, bitcoin will split in two and a new currency called "Bitcoin Cash" will be born. At the time of writing this article, Bitcoin Cash was trading at $502. Each platform is treating the new Bitcoin Cash differently. That led to a higher volume of transactions, which the blockchain technology - the cryptocurrency's ledger that verifies and tracks transactions, recording the latest in unchangeable "blocks" - was struggling to keep up with.
So one group made a decision to break off and create "bitcoin cash".
Yesterday bitcoin split into two cryptocurrencies: bitcoin and "bitcoin cash". However, if your Bitcoins are stored by a third party such as an exchange, then it depends on whether the exchange will support both the versions or not. People are selling their Bitcoin positions and buying Bitcoin cash as a proposition that it is the "new coin" that has more value in the future.
Bitcoin Cash will have a block size of 8MB: more coins will be available and the transaction fees will be lower.
In the event of two separate blockchains after August 1, 2017 we will only support one version. The discount was applied because the exchange claimed customers were manipulating its peer-to-peer margin financing system to inflate the amount of bitcoin cash they would receive. The earlier prices were based on a tiny sample of trades so the more recent ones, between $200 and $300, may be a better indication of its underlying value-though given the enormous volatility in digital currency markets, tomorrow may be a different story. Despite this split, Coinbase isn't going to allow users to access bitcoin cash because it doesn't support it. Shortly after the introduction of the new currency, was trading at around $2,680, even though it didn't move much on Indian exchanges. However, this price on HitBTC shows there is some potential bullish momentum for Bitcoin Cash on the horizon. To cope with the security implications of this, merchants accepting Bitcoin should temporarily increase the number of confirmations they require before they accept a transaction.
Dominic Williams, president of DFINITY, says that the bitcoin prices are likely to become more volatile.