Hey, have you been keeping an eye on crypto? You’ve likely heard about this big deal called the ‘bitcoin supersplit‘. It’s a significant event in Bitcoin’s history, dividing into two separate chains: Bitcoin and Bitcoin Cash. Very intriguing, and I’m here to discuss what I’ve discovered.
Bitcoin Cash
So, in August 2017, the major Bitcoin split occurred, resulting in Bitcoin Cash. This new cryptocurrency aimed to address issues Bitcoin faced, such as high fees and slow transaction times.
Bitcoin Cash increased block sizes to allow more transactions to be processed simultaneously. This was done to accommodate the growing number of people using Bitcoin for purchases, rather than merely for storing wealth. CoinDesk reports that Bitcoin Cash has gained significant traction since its inception, with millions of users worldwide.
Block Size Debate
The Block Size Argument was at the heart of the Bitcoin supersplit. Bitcoin’s initial creator, Satoshi Nakamoto, set a maximum block limit of 1MB.
However, as the network grew, numerous users and developers felt that this restriction was overly limiting. They thought making blocks bigger would let Bitcoin handle additional transactions and retain its utility for transactions. However, there were concerns among some people it might get too big and centralized, so they wanted to keep it small. This conflict ultimately led to a division, as Bitcoin Cash adopted larger block sizes while Bitcoin remained at a 1MB limit.
Blockchain Fork
A blockchain split is similar to creating a new iteration of the blockchain which divides the network into two separate parts. During the Bitcoin fork, the majority of miners and computers followed the new Bitcoin Cash protocols, while a portion remained adherent to the old Bitcoin protocols.
So, now we have distinct chains, each with unique set of rules. Forks can cause a lot of debate and transform the cryptocurrency landscape. The university of Cambridge says this Bitcoin division had a considerable impact on the cryptocurrency market. Bitcoin Cash even became one of the leading market participants.
Market Impact
The Bitcoin division really rocked the cryptocurrency market. Bitcoin Cash’s worth skyrocketed after the split, hitting above $4,000 at one point.
But don’t worry, the entire market stayed fairly stable, with Bitcoin still on top. This just showed how volatile cryptocurrency market can get with rapid fluctuations in prices. CoinMarketCap platform shows that Bitcoin Cash’s worth has been all over the place since the split, showing how there is ongoing debate and uncertain about its future prospects.
Personal Insights
As a crypto fan, I observed the Bitcoin fork very closely. I remember how eager and nervous everyone was about it.
It was a fantastic incident to understand more about crypto’s progressnology and views. And it was very impressive to see how the industry doed. It was a reminiscence that the cryptocurrency realm is all about collective and how important it is to be frank on items.
