Bitcoin splits in two in blockchain feud – CNET

US-IT-FINANCE-BITCOIN

Bitcoin is splitting in two.

Karen Bleier / AFP/Getty Images

 Bitcoin is splitting in two. Disagreements about how to operate the cryptocurrency have led to a new strand called Bitcoin Cash, which will break off from the bitcoin system today.

Bitcoin Cash launches Tuesday in what is known as a “hard fork” from bitcoin, a virtual currency based on peer-to-peer transactions without any central authority or banks.

The new offshoot is a response to the increasing popularity of bitcoin, which is struggling to deal with massive numbers of transactions with its existing underpinning technology. The main bitcoin currency is adopting a system called Segwit2x that moves transactions out of the current blockchain, while Bitcoin Cash will use bigger blocks within the blockchain.

Only some bitcoin exchanges will support the new cryptocurrency — but some bitcoin owners will find their stash automatically cloned into both types. It remains to be seen what the schism will do to market values.

Leave a Reply

Your email address will not be published. Required fields are marked *