The creators of this new currency promise users low fees, high transaction speeds, a low congested network and reliable confirmations. The new cryptocurrency will be trading using the symbols 'BCC or XBC'. The creators of this new coin also say that it is a continuation of the Bitcoin's blockchain ledger. The current price of Bitcoin cash is $395 from its introductory price of $376 on August 1. Its price has traded to highs of $734 and lows of $313 since its introduction. Its supply is 16,482,438, this is similar to the supply of Bitcoin while its current market capitalization is $6 billion.
Why create Bitcoin cash?
The new currency seems to have been created after developers split the price of Bitcoin by seven. Bitcoin is currently overpriced, and its high price could be keeping away potential users and buyers who want to speculate on a cheap Crypto Currency. According to coinmarketcap.com, a website that tracks the market activity of crypto currencies, Ethereum and Ripple offer a better price to buyers compared to Bitcoin.
According to CNBC news, the new currency was created after some members of the Bitcoin community disagreed on how to increase Bitcoin's blockchain capacity. Bitcoin's blockchain was previously recording high transaction rates. Bitcoin's transaction data was thus moved outside its blockchain to allow multiple transactions to take place at any given time.
Recording of transactions on the two blockchains will, however, run on a parallel track.
The future of Bitcoin and Bitcoin cash
The future value and acceptance of Bitcoin cash will depend on its acceptance, its price as well as the price of Bitcoin. Bitcoin cash seems to have been created as a result of an overvalued Bitcoin.
Its increase in price in the future will reduce its relevance and diminish the reason as to why it was created. Its importance and reason for creation will also diminish if the price of Bitcoin is similar to its price. It will also award users a wider cryptocurrency choice to choose from.
The future of cryptocurrencies
The future of cryptocurrencies is still unknown since cryptocurrencies are not widely regulated.
According to coinmarketcap.com, there are 836 cryptocurrencies in the cryptocurrency market. The number of crypto currencies continues to increase in number. Coinmarketcap.com have added five new cryptocurrencies on its cryptocurrency tracking platform since the beginning of this week. It is still not known whether other cryptocurrency developers will develop a similar crypto currency. The central bank of Estonia called the crypto currency market a 'pyramid scheme' while investor Warren Buffet warned investors against 'engaging in the currencies.'
