While the Bitcoin community was eagerly anticipating SegWit2X, Bitcoin Cash, a competitor system emerged to the fore, much to the surprise of everyone. On August 1, the hard fork happened, dividing Bitcoin into two separate strands – Bitcoin Cash and Bitcoin.
Bitcoin Cash, which started at $700/unit, is now trading at $500 approximately. The value of Bitcoin on the other hand, has seen quite a few ups and downs since August 1, reaching $4300 now from its earlier $3,500 value. It stood at $750 during January this year.
With the ecosystem strengthening day by day, users now have more places where they can spend their Bitcoins. And a proper infrastructure is being planned for the currency system with investors becoming more aware about Bitcoins and their value. Speculation is now more on usage rather than on the price factor.
So, what do Bitcoin users have in store now after the hard fork?
Let us have a closer look.
Trading Frenzy among Users
With Bitcoin being in use for nearly a decade now, a high percentage of increase in Bitcoin users due to its surging popularity has created the necessity for a more robust system that meets with the growing demand.
While the hard fork is crucial to alleviating the inefficiency as well as drawbacks faced in Bitcoin use, it has also created great chaos among users. Any individual who had owned cryptocurrency before the hard fork would have a comparable Bitcoin Cash value. If you wish to have Bitcoin Cash, you can do so by accessing the Bitcoin assets you had prior to the fork.
Basically, the private keys used to acquire Bitcoins can be used for unlocking the blockchains of Bitcoin Cash. However accessing in this way is not easy. One dependable way is using, ‘Full node’ . This is a software program that can be used to download the whole blockchain of Bitcoin Cash, and also verify the active Bitcoin transactions. With the software, you can import your private keys and acquire the Bitcoin Cash funds.
If you do not own private keys, profiting from the fork is based on wallet type you have chosen – a digital mode or other cash centric system. Exchanges like CEX.IO, Bitfinex, Bittrex and Kraken allow automatic Bitcoin Cash crediting for users who had Bitcoin assets prior to the fork.
Bitcoin Cash is being traded now at major exchanges including CEX.IO, Bittrex and Kraken. The hard fork has triggered heavy traffic in the exchanges, as users continue to deposit or withdraw funds including the new Bitcoin Cash.
The Opposition to the Hard Fork and Bitcoin Cash Use
In response to the hard fork, only a few of the popular trading exchanges had the right contingencies in place with CEX.IO being the most prominent. In the wake of the hard fork, it split coins for customers and now offers Bitcoin Cash trading too. According to Eugene Kovalyk, CMO of CEX.IO, the listing of new Bitcoin Cash depended on demand. However, he maintains that none of CEX.IO customers will lose Bitcoin Cash.
Not every exchange has welcomed the hard fork. Coinbase, for instance, does not support the new Bitcoin Cash. The exchange reasons that the big revamp needed for the new Bitcoin Cash is not worth the effort, as its future value is unknown as of yet. The exchange however states that if it changed its stance in future, it would distribute Bitcoin Cash to the customers who had Bitcoin balances during the fork. It had earlier allowed customers to withdraw their Bitcoin funds prior to August 1.
SegWit2x vs. Hard Fork
SegWit2x still continues to have staunch support across the Bitcoin community. The key function of the software upgrade is to increase the scalability of the network and to avoid potential damage that a split could bring on.
But Bitcoin Cash supporters led by Amaury Sechet, Facebook engineer, believe that the scaling capacity of SegWit2x is limited. This is the reason for the hard fork to happen. The advantages of Bitcoin Cash include:
- Larger block size than what Bitcoin would have post SegWit2x;
- More capacity for handling transactions;
- Low fees for transactions.
Bitcoin Cash has its own drawbacks. The Bitcoin Cash fork will not be able to increase transactions that are taken care of by secondary network systems, which only the SegWit2x upgrade can implement.
How CEX.IO Handled the Hard Fork
CEX.IO was among the first exchanges to trade Bitcoin Cash. As the exchange had informed earlier, it was fully prepared to deal with the hard fork. Now customers will not have to wait for deposits or withdrawals, as the exchange has enabled them fully.
Moreover customers can benefit from the new trading pairs offered at the exchange. CEX.IO had started to trade Bitcoin Cash immediately ensuring customers did not face any inconvenience. The exchange credited Bitcoin Cash coins to its users based on the balance of BTC they had at the moment of the hard fork. Unique BCH wallets have been created for users and all BCH deposits are free with withdrawal fee being 0.001 BCH. The exchange also offers cold storage benefit just like it offers for other cryptocurrencies.
Best Time for Bitcoin Users to Trade
CEX.IO with its years of experience in Bitcoin exchange is well equipped to meet with the demands set off by the hard fork. As a profitable step for traders, the exchange has made the following trading pairs available to its users:
For customers looking to BCH buying or selling for fiat currency, CEX.IO offers a hassle free and profitable trading platform.
While Bitcoin Cash value has dropped drastically, since the hard fork and the initial euphoria surrounding it, customers can still gain benefits from Bitcoin trading, as Bitcoin value has risen to a new high of around $4,400. And with Bitcoin mining showing great promise, the value is expected to move up further in future. Regardless of the type of cryptocurrency you trade in, CEX.IO is a reliable exchange that makes it easy for customers to do a quick and successful trading option and greater returns.