Bitcoin "Cash" may cause chaos in the virtual currency market
A new version of Bitcoin, called "bitcoin cash", is expected to emerge, a kind of new virtual asset that allows for less time spent on electronic currency transactions.
Analysts predict that the bitcoin split into more than a type of asset will put pressure on the current value of the currency that has seen recent consecutive gains.
A group of top traders for this type of currency agrees with analysts' analysis of this asset class that the currency is more vulnerable than ever to a decline in value as it divides into more than one type of asset.
A financial expert said the new version, caused by the split of bitcoin, could create a huge mess in the virtual currency market.
Some trading platforms in bitcoin have rejected the new "bitcoin cash".
This refusal means that some Bitcoin-based investors will be deprived of the new features offered by the new version unless they change the trading platform they deal with in their default assets.
"No one can guarantee the short-term developments in this market," said Eqbal Gandham, director of eToro's e-platform.
Settlement plan
The idea of a bitcoin split has been unveiled just a week ago and has received support from a large number of interested parties, including a compromise plan aimed at repairing bitcoin.
The plan, known electronically as Segwit2x, aims to remove one of the most difficult obstacles faced by traders in the virtual currency market. The previous transaction log, known as the Volkschein or the block chain (a complex database based on bitcoin transactions), can be added to only one MB Every ten minutes.
The design of this data base depends on the currency trading in this way aims to provide some protection for transactions against electronic hacking attempts, but that means that a bitcoin waiting for long days to complete a deal on the platform in times of pressure on those platforms by a large number of Traders.
Two solutions were proposed for this problem; either increasing the size of each block chain to more than one megabyte, allowing further transactions in each new batch.
Or a second solution that involves changing the location of some cluster-specific information to separate the files contained in the databases, which in turn will be transmitted in conjunction with the transmission of information.
A number of "mining" practitioners, companies and individuals who are working on computers and computers for the currency of the Betquin, have shown support for the new idea.
The Segwit2x solution provided a solution to the data volume problem of each block chain, which is implemented in two steps. The first is the data split in August, followed by the second step, which increases the volume of the cluster to 2 MB, which begins in November.
An initiative called the "Bitcoin Improvement Initiative 91" (BIP91), which suggests that if 80 per cent of digital mining activity adopts the new cluster program, is used continuously between 21 July and 31 July, the wider community involved in transactions Bitcoin will accept this initiative as a compromise, which has already happened to adopt the bitcoin data split.
Replace old coins
With 95 percent of traders using the new software bitcoin, showing their support for the new split, some reassurance in the market after avoiding what was expected to be like a "civil war" among traders and a wide division among them.
Some interested in virtual currency markets, including former Facebook architect Amory Sekhit, have unveiled plans to launch the new version of bitcoin, a bitcoin cash, on August 1.
The real risk in the new scheme was that there was no guarantee that the process of data fragmentation would be a process of doubling the volume of the cluster chains.
In this case, a single data series can be up to 8 MB, which could damage the idea of data fragmentation.
The second problem that a bitcoin can divide into two types of assets is that a number of virtual currency trading platforms have not yet decided whether or not to allow traders to deal with bitcoin.
More seriously, some platforms plan to stop trading on all forms of Bitquin to ensure that potential chaos is avoided.
Possible chaos
There is a certain amount of uncertainty about the future bitcoin Cash, whose market price estimates have begun to indicate $ 267 for the new unit, a very small value compared to the original unit value of bitcoin.
Experts believe that with the launch of the new virtual currency, bitcoin Cash, there will be a great deal of convergence between the value and the value of the original bitcoin currency, which threatens to lose the significant gains made by the Pitcuin in the recent period, which amounted to 2,780 dollars per unit.
"There is a very high level of uncertainty about bitcoin futures, which requires caution in future trading," said Gary Hailman, a professor of alternative economics at Cambridge University.
"We will not be able to identify the real price bitcoin cash until a number of companies operating on the trading platforms in Bitquin begin trading the new version, which we do not know exactly when it will happen."
He predicted that the bitcoin market will be very volatile in the next few days, which requires traders to adhere to the default investment portfolios cautious during trading.
He noted that he has a sense that it is possible to manage the split of bitcoin into two types of assets and deal with them if everyone adheres to the rules of hedging against market volatility.
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