BTC and BCC

This week, Bitcoin forks. About 99% of the network including the miners, exchanges, user nodes will continue to support the original BTC, which has agreed to roll in the Segwit2X patch for scaling. However, many of these exchanges have taken a stand that they will not support the BCC chain.

Bitcoin Cash

However, the rest will move onto BCC (Bitcoin Cash), an alternative currency supported by a few miners, and, developers. ( Read more about BCC at its website https://www.bitcoincash.org/. ) There are quite a few main exchanges like Kraken that are neutral to BCC.

This has happened earlier with Ethereum – wherein two coins were born i.e. ETH and ETC, after the DAO hack. ETC continues to trade on several exchanges such as on shapeshift.io, but major exchanges do not support ETC.

In equity markets, when a stock splits or additional shares are issued as a bonus, the value of the equity does go down to reflect this – so as to retain the market cap of the firm issuing shares. Usually, in the short term, this increases the market cap because of each new share, becomes more amenable to the buyer’s “willingness to pay”.

In Contrast, with respect to Bitcoin – this is very unlike a stock split (or a bonus declaration). This is the creation, of a brand new coin and blockchain off the original chain. Ideally, every BTC owner can- after August 1st access both his BTC and BCC balance. The futures market of BCC, already shows the price of BCC to be between 0.08 and 0.01 BTC.