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‘Bitcoin Cash’ Support Grows as August 1 Draws Near

 ‘Bitcoin Cash’ Support Grows as August 1 Draws Near

 The user-activated hard fork (UAHF) on the Bitcoin network is looming around the corner. ‘Bitcoin Cash’ (BCC; BCH) is slated to break away as a new fork from the Bitcoin blockchain on August 1 at 9:20PM JST or 12:20PM UTC.

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Major Exchanges Embrace Bitcoin Cash

Multiple bitcoin exchanges have signaled support for ‘Bitcoin Cash.’ This news comes alongside the inevitability that a UAHF event will occur.

Last week, Bitcoin.com detailed many of the exchanges and platforms that will be rejecting Bitcoin Cash (BCC), but now more appear to be settling into the idea that it will exist as a legitimate digital token. At the time of writing, futures of BCC are being traded on Viabtc’s exchange for roughly $390.

Fork Watch: Bitcoin Cash Support Grows as Aug 1 Draws Near

Kraken

The large bitcoin exchange Kraken made an announcement yesterday in support of Bitcoin Cash. They said they will be providing users with the ability to trade it on their platform. They pledged to credit clients with an equivalent amount of Bitcoin Cash based on their current holdings of bitcoin.

Although the Bitcoin Cash fork is expected to be minor, it may be successful. Provided that unforeseen circumstances do not make it prohibitively unsafe or difficult for us to do so, Kraken will support Bitcoin Cash…

However, Kraken warned margin traders on their platform to “be very cautious across the fork.” They were told to either greatly reduce their position or cease margin trading altogether to ensure a smooth transition. In the least, they should set stops and not rely on Kraken to function optimally while the fork is in progress.

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Bitfinex

The bitcoin exchange platform Bitfinex also announced they would be supporting bitcoin cash. They plan on providing an amount of bitcoin cash tokens equivalent to that of bitcoin in their customer’s wallets.

Fork Watch: Bitcoin Cash Support Grows as Aug 1 Draws Near

They said, “A minority of Bitcoin miners will be forking on August 1st, 2017 to create a new chain called Bitcoin Cash. The fork does not impact Bitcoin balances, but it creates a new token. At the time of the fork, all Bitcoin addresses holding a balance will automatically have equivalent balances in Bitcoin Cash.”

The company, however, mentioned they will not be using “BCC” for the bitcoin cash ticker symbol. They said it is already in use on their platform. Instead, they will use “BCH.” The company will distribute BCH tokens with the UTC timestamp of the first forking block, which will occur August 1. Their page contains details on how they plan on ironing out the kinks and managing technical issues.

 Hardware Wallet Company’s Support Bitcoin Cash

Besides exchanges, major hardware wallets manufacturers are also supporting Bitcoin Cash. Both Trezor and Ledger have provided details on securing bitcoin cash in their wallets when the fork occurs.

Fork Watch: Bitcoin Cash Support Grows as Aug 1 Draws Near

Trezor wallet said they can safely adopt bitcoin cash functionality with their wallets since the currency supports replay attack protection. They said, “Bitcoin Cash has implemented the necessary protection against replay attacks, meaning Trezor can support the currency safely. We will provide an interface, accessible from Trezor Wallet, where you can access and safely claim your Bitcoin Cash coins. You will be prompted by Trezor Wallet once you select ‘Bitcoin Cash’ in the currency selector.”

As a result of the in-built replay attack protection, Ledger will also provide full functionality for bitcoin cash via their wallets. They say users will be able to gain access to bitcoin cash after the fork by using a special tool. They said users could view bitcoin cash currency as “free air-dropped money.”

As a result, all bitcoin holders will be granted a new duplicated Bitcoin Cash balance (literally airdropped free money) if the fork activates — this post and the follow ups will describe how you can best secure this new balance, then decide to trade it, hold it or sell it as you wish.

Both hardware wallet companies wrote details on their page explaining how to respond to the fork and gain access to freshly minted bitcoin cash.

Many Company’s Working With Bitcoin Cash; Protect Your Keys

Several other exchanges and wallet providers are also signaling their support for the hard-forked token. Exchanges include Quoinexchange, Viabtc, Kcoin, Btcbox, Bithumb, Kex, Mercury Cash, Huobi, Quadrigacx, Toubi, Korbit, Bittrex, and Btcpop. Wallet providers who are adopting Bitcoin Cash include, Bitcoin ABC, Bitcoinclassic, Electrum Cash, and btc.com.

Fork Watch: Bitcoin Cash Support Grows as Aug 1 Draws Near

The exchange Quoinexchange said, “We have also received many inquiries regarding BCC (Bitcoin Cash) crypto currency. As an exchange, our goal is to provide a fair exchange platform which is highly secure and compliant. As a result of the fork, users that hold BTC in their balances at the time of the fork will be credited equivalent BCC. If your account balance at the time of the fork holds 1 BTC, you will be credited 1 BCC.”

These announcements seem to suggest stronger community backing for the fork token. It does not look like the currency will die immediately in the rip and roar of the fork. The future of the digital asset remains uncertain, for sure.

However, the basic rules of forks still apply to everyone regardless of what happens: keep private keys safe. No matter what coin wins out, every bitcoin user should try to maintain their coins with their own securely held private keys. This ensures that control of both coins remain in the user’s hands.

Will bitcoin cash continue to grow after Aug 1? Will it have more supporters? 

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1 august bitcoin fork

What’s going on?

For a few years, there has been a large debate in how to handle scaling in Bitcoin – currently, most blocks are hitting the blocksize limit of 1 MB, resulting in high fees, low transaction throughput, and slow transactions.

There have been several attempts to solve this scaling issue. Unfortunately, none of them have been a clear victor, leading to multiple factions being formed. Each faction favours their solution and believes opposing factions will lead to the ruin of Bitcoin.

Currently, one of these proposals, known as the User Activated Soft Fork (UASF) is scheduled to go live on 1 August, 2017. Another group of miners has stated their intention to create another fork of the Blockchain if UASF is indeed activated, splitting the Bitcoin chain into two.

1August.org does not aim to pick sides in this debate. Our purpose is to help the regular bitcoin users safeguard their coins prior to a fork.

What should I do?

When a Cryptocurrency forks, it results in duplication. Any transactions, and coins that were present prior to the fork are valid on all subsequent chains. It is in your best interest to control your coins in a manner that gives you the flexibility to transact on both chains. A well-known previous example of this is the Ethereum and Ethereum Classic split.

The only way to protect yourself in the event of a fork is to ensure that your Bitcoins are under your control. If your coins are stored on an exchange such as Coinbase, Bittrex, Bitfinex etc. or on an online wallet such as Blockchain.info, you are forced to use whichever bitcoin fork they choose to support.

To completely control your bitcoin, you must be in control of your private keys. A private key is what allows you to spend your Bitcoin, and must be kept safe. There are two ways to be in complete control.

1. Wallet Applications – Also known as hot wallets, these are programs that run on your computer or mobile phone that are capable of generating Bitcoin addresses, creating transactions, and more. Most such programs allow you to export your private key, which can then be imported into another wallet application. These wallets allow you to make Bitcoin transactions without giving up the power to maintain control of your coins in the event of a fork. However, due to being stored on your device, they are more susceptible to theft through malware and hackers.

2. Paper Wallets – Also known as cold storage, paper wallets are Bitcoin addresses generated on a device with no internet access, and then printed out and kept safely. They have the advantage of being far more secure, as the only way to access your Bitcoin is to physically access the paper wallet. They also have the disadvantage of not being able to easily use your Bitcoin, as you would first need to import the wallet into a wallet application connected to the Bitcoin network, or manually create and sign transactions on an offline device, before broadcasting the signed transaction from a connected device.

I want to secure my Bitcoin!

    • WALLET APPLICATIONS
    • PAPER WALLET
    • HARDWARE WALLET

Wallet Applications

There are multiple wallet applications you can use to secure your Bitcoin. We provide steps for Electrum and Mycelium, but they are largely consistent across other wallets.

Electrum

Download Electrum

Electrum is arguably the best lightweight Bitcoin wallet available. To get started, download and install Electrum, and carefully note down the mnemonic seed generated by it. This seed is used as the root of your private keys, and can be used to recover your bitcoin in case your Electrum install, harddrive, or computer are destroyed.

Transfer any bitcoin from an exchange or online wallet to an address provided to you by Electrum. This must be done prior to August 1st, 2017 to allow you to work on both sides of the fork.

To export your private keys, simply go to Wallet->Private Keys->Export in the menu options. You must never share the output of this with anybody, as they will be able to access any bitcoin at any of the addresses in your Electrum wallet immediately.

Mycelium

Download Mycelium

Mycelium is one of the most stable Android and iOS wallets available. To get started, download and install Mycelium, and carefully note down the mnemonic seed generated by it. This seed is used as the root of your private keys, and can be used to recover your bitcoin in case your Mycelium install, harddrive, or computer are destroyed.

Transfer any bitcoin from an exchange or online wallet to an address provided to you by Mycelium. This must be done prior to August 1st, 2017 to allow you to work on both sides of the fork.

To export your private keys, simply go to Accounts, then select your HD Account and select “Export” from the menu options. You must never share the output of this with anybody, as they will be able to access any bitcoin at any of the addresses in your Mycelium wallet immediately.