A minority of bitcoin miners are ‘forking’ to create a new version of bitcoin, called Bitcoin Cash (BCC), on August 1, according to Hong Kong-based digital currency exchange Bitfinex.
The fork – when the blockchain splits in two – will not impact bitcoin balances, but it will create a new token, Bitfinex said.
CoinDesk said that a group of miners and developers plan to create an alternative network to prove bigger blocks are the best solution for increasing network capacity.
“Called Bitcoin Cash (BCC), the effort will effectively fork bitcoin’s existing software and transaction history, and in the process, give every bitcoin user new cryptocurrency tokens on a new blockchain with different rules,” it added.
Amid concerns over the impact on bitcoin’s price and mining hashrates, here is a look at the latest bitcoin price and breaking news.
9.40 BST: Bitcoin splitting into BTC and BCC
With the fork scheduled for tomorrow, the Bitcoin blockchain will split resulting in two sets of tokens, bitcoin (BTC) on the original chain, and bitcoin cash (BCC) in the new one.
Anyone who already holds bitcoins will have coins in both sets, the BCC and BTC.
8.40pm BST: Finance expert draws similarities with Ethereum
Charlie Morris, the chief investment officer of NextBlock Global, said: “Bitcoin cash basically came out of nowhere.
“A group of miners who didn’t like SegWit2x are going to opt for this new software that will increase the size of blocks from the current 1 megabyte to 8.
“It will be similar to what happened with Ethereum when Ethereum came to the scene.
“The two currencies marketcap equaled out to the marketcap of the original Ethereum.”
7.50pm BST: Bitcoin could surge to $5,000 claims analyst
Independent research analyst Ronnie Moas believes that bitcoin could surge to a staggering $5,000 price target in 2018 – an 80 per cent gain on its current price.
Mr Moas published a 122-page report on bitcoin and other cryptocurrencies, where he also expects ethereum to double in value.
“In my view, the genie is out of the bottle, and cryptocurrencies will continue to rise and take market share away from stocks, other precious metals, bonds and currencies,” he wrote in his report.
“I think investors should take a shot on this and hold for a few years. If you lose a few bucks, at least you took a shot,” he added.
“In life, you miss every shot that you do not take. It will probably be more upsetting to watch it (from the sidelines) go up another 1,000%.”