In August 2017, the Bitcoin blockchain is scheduled to split into two separate chains, one run by each faction of the Bitcoin community. This event, known as a hard fork, will result in two separate versions of the Bitcoin blockchain and two separate digital currencies: Bitcoin (BTC) and Bitcoin Cash (BCC).
How will the blockchain split affect Bitcoin users?
The hard fork will only affect users who hold Bitcoin at the time of the fork. If you hold BTC in a wallet that gives you control of your private keys (i.e. not on an exchange), you will be able to access and spend both BTC and BCC after the fork. However, if you hold BTC on an exchange that does not support BCC, you will only be able to access and spend BTC.
What is the difference between BTC and BCC?
Bitcoin Cash is a fork of the Bitcoin blockchain that is increasing the blocksize limit to 8MB in order to make the network faster and more scalable. Bitcoin Cash is not backwards compatible with the Bitcoin blockchain, so BTC and BCC will be two separate and incompatible digital currencies after the fork.
How will the blockchain split affect the value of BTC and BCC?
The value of BTC and BCC will be determined by the market after the fork. It is possible that the value of BTC will go down after the fork, as some users may sell BTC in order to buy BCC. It is also possible that the value of BCC will go down after the fork, as it will be a new and untested digital currency. Only time will tell what will happen to the value of BTC and BCC after the hard fork.
Other related questions:
Q: What happens when blockchain splits?
A: When a blockchain splits, or forks, two separate chains are created. One chain contains the original data, while the other chain contains the new, updated data.
Q: What happens when Bitcoin is forked?
A: When a fork occurs, the new blockchain that is created is an exact copy of the original blockchain up until the point of the fork. From that point onwards, the two blockchains diverge and operate independently of each other.
Q: Is it possible for Bitcoin to split?
A: Yes, it is possible for Bitcoin to split. This could happen if there is a disagreement among the miners about the rules of the Bitcoin network. If the miners can’t come to a consensus, then the Bitcoin network could split into two separate networks.