‘Bitcoin Cash’, a proposed cryptocurrency that could result from a hard fork in August 2017, is already trading around ¥3,250 CNY ($480 USD) in China. It’s an indication there is still significant interest in a non-SegWit version of Bitcoin — at least to speculators.
Bitcoin Cash Worth $400+ but Doesn’t Exist Yet
Bitcoin Cash (BCC) technically doesn’t even exist yet. Although the project is real and has stated its intentions, no hard fork has happened yet.
Shortly after trading launched, the hypothetical asset leapt as high as ¥5,634 ($832) on ViaBTC before settling down to hover around half that. At press time it was ¥3,257 ($481).
As Bitsonline reported previously, ViaBTC promised to make Bitcoin Cash (mined by running “Bitcoin ABC” software) available to its mining pools, cloud miners, and exchange traders.
Miners must wait for a fork to begin. However ViaBTC created two new assets called BCC and “BTC_FROZEN2” to live on its exchange until the real thing comes along. Traders can exchange BTC for BCC 1:1, and trade it against CNY. BTC_FROZEN2 represents “frozen” BTC value only and isn’t available for trading.
Support for Non-SegWit, On-Chain Scaling
BitKan co-founder Edward Liu told Bitsonline he thinks there is still opposition to activating SegWit for Bitcoin in any form. He said:
“Some users in the Bitcoin community do not agree with SegWit technology and its evolutionary route. They want scaling directly in a hard fork, and don’t want to add the features of SegWit. So, these users plan to use the Bitcoin ABC software on August 1 for a hard fork to Bitcoin Cash, or BCC. The growth of the value of BCC matches the needs of this part of users, so it will be valuable.”
“Forks are an inevitable part of Bitcoin’s evolution. Bitcoin and its community have to face up to it. For the community, we should prepare and be ready for the the fork outcome.”
Eventually the market will decide which chain is more valuable, Liu said. He added that he anticipates other exchanges will soon begin offering BCC trades.
China Could Decide Bitcoin’s Destiny… Again
Even its supporters predict Bitcoin Cash will be the “minor chain” in the immediate aftermath of a fork, making it technically an altcoin. The chain with more hashing power would still be the “real” Bitcoin. In time though, that claim may not matter. Miners and investors could switch at any future point, and users who hold their own keys will automatically have both coins.
China has for several years led cryptocurrency in some interesting and unexpected directions. If its cashed-up speculators sense potential value in an interesting asset, they won’t hesitate to jump in. Chinese miners are also unlikely to refuse an opportunity.
BitKan will host an event in Beijing on 10th September that will focus on China’s unique role in Bitcoin history and future. If a hard fork leads to two “Bitcoins” with significant market caps, it’s guaranteed to be an interesting meeting.
What will become of Bitcoin Cash? Let us know in the comments below.
Images via BitKan, Pixabay