A man walking past a display cabinet containing models of Bitcoins in Hong Kong on August 3, 2016 (AFP / Anthony Wallace)
New York: Bitcoin’s underlying software code could be split to create a clone called “Bitcoin Cash,” potentially providing a windfall for holders of the digital currency.
The initiative is being led by a small group of mostly China-based bitcoin miners - who get paid in the currency for contributing computing power to the bitcoin network - who are not happy with proposed improvements to the currency’s technology.
They have initiated what is known as a “fork” - where blockchain, a public ledger of all bitcoin transactions, splits into two potential paths - that is set to be activated on August 1. A fork, if it goes ahead, would be significant as it could create a new competitor for bitcoin, which remains the oldest and most valuable digital currency. It is not clear if the fork will happen and how much the new coin would be worth.
If the fork goes ahead on Tuesday, anyone owning bitcoins before the split will have access to an equal amount of Bitcoin Cash for free, which they will then be able to trade for fiat currencies - legal tender backed by an issuing government - or other digital currencies. “This is somewhat like a stock split,” said Jeff Garzik, chief executive and co-founder of Bloq, a blockchain company.
