Update 14:50 UTC: The Bitcoin hard fork has happened and it actually happened two hours after the scheduled time. According to information available, the hard fork happened at 14:24 UTC when a 1MB BTC block was mined and was rejected by the Bitcoin Cash (BCC) nodes thereby creating a new chain with its own nodes, miners, and its own network.
We will come up with more news on this in some time, so stay tuned.
There is no saving the bitcoin (BTC) hard fork as it is destined to happen in a matter of hours from now splitting into Bitcoin Core, which will retain the BTC ticker for now, and Bitcoin Cash (BCC or BCH or XBC – depending upon how the exchanges decide to go about it).
The bitcoin (BTC) hard fork will be happening on midday in London i.e. 12:20 UTC – very early morning if you are in the US.
As per the plan, once a block is created on the Bitcoin Cash chain, the split will happen. Once that happens, the BitcoinABC nodes, some of the 800 Bitcoin Unlimited nodes, the Bitcoin Classic nodes and the XT nodes will fork off from the Bitcoin Core nodes and the segwit2x btc1 nodes thereby creating their own network that will operate independently.
Anyone having bitcoin (BTC) at that particular moment will be getting an equal amount of Bitcoin Core and Bitcoin Cash (BCC). The two currencies will then operate independently of each other from there on; however, because the two cryptocurrencies will have the same Proof of Work (PoW) algorithm, bitcoin miners will be able to move freely between the two or share the hashrate dependent on price.
The new cryptocurrency, BCC, may initially get a surge owing to the possibility that miners may be drawn towards it and so BTC may loose hashrate. This in turn will slow down the network to some extent for a period of about a fortnight during which there will be difficulty re-adjustment.
During the first few days after the hard fork, exchanges will cease trading while also not accepting deposits and withdrawals shortly. If you are planning to carry out any on-chain transactions, it is recommended that you avoid them until a couple of days after the hard fork just to be on the safe side of things.
Coinbase has opposed the BCC and will not be supporting the new cryptocurrency. It will also not allow users to withdraw their BCC and this is something that has angered bitcoiners around the world.
Not allowing bitcoiners withdraw their BCC has been equated to an act of theft and chances are that the exchange will have a hard time sticking to its current position. Whatever the case may be, users aren’t adopting a wait and watch stance and have been leaving Coinbase for other exchanges.
This mass exodus cause massive delays in withdrawals – up to 12 hours – with Coinbase blaming it on the bitcoin network, which we believe was a sham.
BCC has already started trading in futures with ViaBTC being the first one to offer that option. Some exchanges including the OKex will list BCC for trading immediately after the fork. Kraken will also be listing BCC, but it hasn’t revealing a specific timeline.
Trading in the first few days will be very volatile as users move from one cryptocurrency to other. However, if you are in it for the long haul, the initial volatility shouldn’t be a cause for concern because in the long run both the currencies will offer you a return much higher than a single currency alone.