Bitcoin Cash does not propose moving transaction data outside of each block, but wants to increase the size of each to 8MB.
A group of existing bitcoin users and companies are launching bitcoin cash in a bid to increase transaction capacity. The original plan was to increase block sizes to 2MB each. As a result of the power struggle, the currency could split and create a clone that could divide the investor community driving Bitcoin's prices.
For the first time in Bitcoin's eight-year history, its digital ledger split over ideological differences concerning the structure of the blockchain.
"Bitcoin cash has a chance to become the dominant cryptocurrency contingent upon its ability to gain trust and support from both current and new players as well as security of its network", he said.
He added: "Because millions of people are going to hold bitcoin cash, it is probably going to be around for some time". Bitcoin Cash, also known as BCC, is supported by a group of miners who refer to themselves as "We The People" in an online statement, because of its 8 megabyte block, which is meant to improve the entire network speed.
"There are some very large holders who own bitcoin, who don't like bitcoin and do like bitcoin cash", he said.
Bitcoin cash came out of left field, according to Charlie Morris, the chief investment officer of NextBlock Global, an investment firm with digital assets. Is Bitcoin Cash an entirely new digital currency? While the funds exchanged were in Bitcoin, all the figures were worked out in Australian dollars, since the wild swings in Bitcoin's value make it an uneasy fit for such deals.
Even at the time of the report, there is plenty of uncertainty over whether Bitcoin exchanges will support the creation of Bitcoin Cash and allow transactions under Bitcoin Cash, with some exchanges looking to suspend Bitcoin transactions until the dust has settled.
It's a bit complicated for those who aren't in the bitcoin weeds. "Provided that unforeseen circumstances do not make it prohibitively unsafe or hard for us to do so, Kraken will support Bitcoin Cash".
At 12:20 UTC (17:50 IST) on Tuesday, bitcoin will split in two and a new currency called "Bitcoin Cash" will be born.
Bitcoin Cash's value, and its effect on cryptocurrency's place in the world, will be determined by how many investors and users switch from traditional bitcoin.
Putting to rest speculations that Coinbase will keep BCC for itself, David Farmer, Director of Biz Ops at Coinbase, said that they are not intending to interact with the Bitcoin Cash blockchain, or to access bitcoin cash (BCC). As long as you control the private keys of your bitcoin wallet - or have your coins on an exchange which has pledged support for bitcoin cash - you will be able to claim your bitcoin cash.
Let's start with why scaling bitcoin is tough.
As the most likely turn out, it's expected that Bitcoin is going to lose a lot of its value shortly following the split. BTC is presently trading at around $2,750 on the CoinDesk Bitcoin Price Index. Morris told Business Insider that bitcoin cash was trading in the futures market for about $200 to $400 last week, suggesting that's the range it would fall in during regular trading. "Either is a win for bitcoin users".