On August 1, Bitcoin will fork into BTC (the original coin) and BTCC (new coin, called Bitcoin Cash). This article will guide you on the necessary steps to take if you hold Bitcoin on 1st August. (Read more about an easy eplanation of forks and hard forks here: Guide to Forks: Everything You Need to Know About Forks, Hard Fork and Soft Fork)
Bitcoin cash will be created on Aug 1, supported by those who are opposed to the new proposal (Segwit implementation) and wants a drastic change to the block size limit (increase to 8mb). Bitcoin cash will be an altcoin for sure. But it is far from a distraction. Usually, altcoins are a software fork of the bitcoin core protocol which requires no mining consensus and almost always creating their own genesis block; essentially, they’re creating their own chain with no prior history. (Read more: Coins, Tokens & Altcoins: What’s the Difference?). But Bitcoin Cash (BTCC), though technically an altcoin due to a change in protocol, shares exactly the same history with Bitcoin. That’s what makes it so controversial. BTCC is the manifestation of the civil war that’s been plaguing Bitcoin for years. (See more: Bitcoin’s Civil War: How and Why?)
Now remember that the 2mb increase for the Sewit implementation (Segwit 2x) only kicks in 3 months from now, requiring all supporting miners to upgrade their nodes. Anything can happen till then; there’s always a probability that miners who’ve been advocating for bigger block sizes change their mind and support BTCC. Dont forget Bitmain – the entity that conceived BTCC in the first place – has explicitly stated that they’re following up with the developments on both side. If Bitmain jumps over to BTCC, you can expect a full on battle. And frankly, there are merits to the changes advocated by BTCC.
State of Bitcoin on 1st August
There are some exchanges and wallets that support the new currency, BTCC. What it means is that if you have Bitcoin stored in exchanges/wallets that SUPPORT BTCC, then you will AUTOMATICALLY receive the equivalent amount of BTCC. Example: If you own 10 Bitcoins on August 1st (stored in exchanges/wallets that SUPPORT BTCC), then you will receive exactly 10 BTCC. Therefore, you will own a total of 10 BTC and 10 BTCC. (See also: Guide to Cryptocurrency Wallets: Why Do You Need Wallets?)
Summary: Due to the fork, you will receive equal amounts of BTCC for every BTC you hold (only if you keep your BTC in exchanges/wallets that SUPPORT BTCC).
WARNING: IF YOU CURRENTLY STORE YOUR BITCOIN (BCC) IN AN EXCHANGE THAT DO NOT SUPPORT BTCC, THEN YOU WILL NOT RECEIVE ANY BTCC COINS! I would strongly recommend you transferring your coins to an exchange/wallet that support BTCC, since you’ll be receiving free coins! You can sell them off immediately or hold on to them as you wish. The list of exchanges/wallets are shown below:
Exchanges that Support BTCC
Exchanges that DO NOT Support BTCC
Exchanges that are Undecided
Wallets that Support BTCC
Trezor (Hardware Wallet)
Ledger (Hardware Wallet)
Wallets that DO NOT Support BTCC
PLEASE NOTE: 24 hours prior to the BCC UAHF time on August 1st, 5:20am (12:20pm UTC), withdrawals and deposits will be frozen for most exchanges to get ready for the event. IT MEANS YOU CANNOT SEND AND RECEIVE BITCOIN DEPOSITS 24 HOURS BEFORE AUGUST 1. Some exchanges would also CANCEL all your open orders and disable margin trading (please check your exchanges).
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