August 1st marked the birth of a new form of Bitcoin – Bitcoin Cash.
Many were concerned that the current bitcoin price would tumble, and although it did lose a few hundred dollars of its value over the hours of the fork, it did recover to its current state of around $2800.
The big question is.. will this new form of Bitcoin be worth anything?
To answer that, we need to look at a few different factors.
- The number of miners who are actively mining it (against the ones mining BTC)
- The number of exchanges and other services that will be supporting it
- and the increased frustration of the slow transaction times of Bitcoin!
First of all, Bitmain – The largest ASIC miner manufacturing company/pool – is not currently supporting Bitcoin Cash, however they did release this statement
“We are closely observing the “BCC” movement and do not rule out the possibility of supporting both Segwit2x and BCC,”
This suggests that they will support the strongest currency, (which is currently Bitcoin) rather than both. With the introduction of Segwit2x in a few months, it may be enough to solve Bitcoin’s current downfalls and even wipe out Bitcoin Cash. BTC.TOP (the second largest mining pool) has said that they will be portioning the mining power depending on the price of each currency.
Regarding the current state of services that support the new currency.. they are lacking to say the least. People believed that Bitcoin Cash was going to fail, but at least for now its popularity is increasing daily.
BitPay – Who give services like Steam the ability to accept Bitcoin – have said that they have no immediate plans to support Bitcoin Cash, and that users will have to pay in Bitcoin if they wish to use their service.
Bitfinex and Kraken – two of the major exchanges – have announced that they are supporting the fork, and have already credited, or are in the process of crediting users with their new currency depending on how much Bitcoin was in their account at the time of the fork.
GDAX, Gemini and Bitstamp however, have stated that they currently do not have plans to support Bitcoin Cash, another major blow to the new currency.
The soft fork of Segwit2x is still planned to go ahead in the next few months, which could provide the solution that will be sufficient to most people. Therefore.. I don’t suggest investing heavily in Bitcoin Cash. If you have some.. great. Be sure to keep it, its ‘free money’ and you have no idea which way it’ll go, but my guess is up in the short term. If you can ‘make some money from free money’, go ahead.. but i’m sceptical as to whether Bitcoin Cash will be the future of Bitcoin.