According to Bloomberg, today some cryptocurrency miners started using software called Bitcoin Cash and splitting a new blockchain off the old one. Rival factions couldn't come to terms with how the cryptocurrency should work, so they agreed to disagree and fork the blockchain.
Some members of the bitcoin community, however, failed to signal support for SegWit2X, on the back of concerns that the proposed software upgrade doesn't adequately address the slowdown in transactions on the Bitcoin network. So now there are two versions: The original one and a new type of online money called Bitcoin Cash, which is now being bought and sold at online exchanges. The first Bitcoin Cash (BCH) block was mined only five hours later after the launch of the hard fork at 12:20 UTC. For example, the Bitcoin network can right now handle around 6 transactions per second which is ridiculously low compared to Visa that can process 1600 per second. Since then, four other blocks have been added to the Bitcoin Cash chain. On the other side are the miners, who want to increase the size of blocks to make the network faster and more scalable. Bitcoin Cash has been as low as US$214 but is now trading around US$606.
User dissatisfaction primarily stems from limitations to how Bitcoin now works.
"Bitcoin Cash has not solved scaling", Dash said.
However, Kraken and Bittrex have reported heavy traffic over the last couple of days, leading to problems with log-ins and withdrawing and depositing funds, including bitcoin cash. At its current valuation, bitcoin is capitalized at $45.1 billion. These involve a sort of public ledger that contains transactions from each and every bitcoin transaction. But it has struggled to find a way forward (see "Leaderless Bitcoin Struggles to Make Its Most Crucial Decision").
Currently, Bitcoin Cash is trading at $502 and the early trends are indicating further growth.
Anyone who owns bitcoin will also own the same number of Bitcoin Cash units.
Splitting Bitcoin means devaluing it.
"The real price of bitcoin cash is not certain yet", said Genki Oda, president of Tokyo-based virtual currency exchange operator Bitpoint Japan Co.
The miners are the powerful segment in the Bitcoin community.
It seems that, for now, it is up to the market to decide. What's certain is that there is uncertainty around the future of Bitcoin and the fork.