What is Bitcoin Cash (Aug 1st Split)

What's up everyone? Today I want to talk about Bitcoin Cash. And that's right, it's Bitcoin Cash in a nutshell. I'm going to review a lot of the fear that's spreading right now and I'm going to talk a little bit about what exactly is Bitcoin Cash. I know there's a lot of advice right now to talk about not trading Bitcoin after August the 1st, not using Bitcoin, stop using it, lock it up safely. I'm going to explain the reasons behind this and why you might want to do this. And if you don't do this, what are the kind of repercussions that can happen? So let's start off with what is Bitcoin Cash first of all. So Bitcoin Cash is kind of another branch of Bitcoin. It's something that will happen on August the 1st by a group of miners who are so frustrated with the current situation, this current scaling debate that they want to create their own version of Bitcoin in their image. So this version of Bitcoin is actually quite interesting because it will be a fork of the current chain in a sense that if you own Bitcoin now, if you have full access to your wallet right now, you're going to have the same amount of Bitcoin on the Bitcoin Cash chain. That's what it's going to be called. So it's going to be just modes that are potentially going to run it. For example, VIABTC has expressed interest in running it. And because Bitmain controls quite a lot of their shares of VIABTC, it's possible that Bitmain will mine there as well. So you'll have some backing support from the miners. The normal chain will go on. So what we know as Bitcoin will go on. It will continue forward. It's just that there's a separate chain that's going to be created. And if you have Bitcoin right now, you're going to have two versions of Bitcoin. And you're going to have balances on both chains. So that's why there's a lot of people who are talking about, oh, this is just free money. You know, another chain is created magically. And now you have access to funds on that chain. That means you can sell your funds on that chain. And we've seen that on Chinese forums. They're like, why object to this? You know, Bitcoin Cash is pretty cool. It means that we have now, we can have a chance to sell Bitcoin and Bitcoin Cash. And so we're going to start trading that. So the potential is that if you don't backup your wallets, if you don't have access to your wallet, there's a chance that you might not get the benefits of the other chain. You might not be able to access Bitcoin Cash. Whether Bitcoin Cash is valuable or not, that's another matter. So it might be the case that if you just ignore everything that's happening right now, Bitcoin Cash might not be worth anything in the future. It might just die off. It might not even happen. And if that's the case, then you have nothing to lose. You don't lose anything. So it's just this kind of extra coin, this kind of bonus coin that's popping up. If you do want to take advantage of it, then you have to control your own wallet. So that means you can't leave your money on exchange. Because exchanges control... If you leave your money on exchange, if you leave your Bitcoin on the exchange, the exchange technically controls the private keys. They control full access to that Bitcoin. So it's up to them if they give you Bitcoin Cash or not. So that's why there's a lot of advice I've been seeing on the internet, telling people to just move their cryptocurrency out of their wallets and into their own... Sorry, out of the exchanges and into their own wallet. And that way you can take advantage of Bitcoin Cash if it's worth something. And that's the whole caveat there. So is it going to be worth something? Before we talk about that, of course, we're going to talk a little bit about the dangers of transferring funds after August 1st when this Bitcoin Cash is going to be formed. Because when Bitcoin Cash is going to be formed, there might be special rules put in place. For example, right now there's talk that if you send Bitcoin... So let's say you have access to a wallet and now you have Bitcoin Cash and you have Bitcoin. So say you have one Bitcoin right now, you're going to have one Bitcoin and one Bitcoin Cash in the future. So now you've got this extra coin and you want to sell it off. But if you do send Bitcoin by itself, there's a chance that hackers can use the signal that you broadcast and steal your Bitcoin Cash as well. So that's why a lot of exchanges are actually freezing their accounts before... or freezing Bitcoin transactions after August 1st because there's a slight risk of that. In fact, Bittrex has already stopped doing that. Just because there's uncertainty on the network. Just because they're not really decided on what to do with Bitcoin Cash. So moving forward, so there's two risks. If you don't have your Bitcoin on your own wallet, there's a chance that the exchange or where you're storing the Bitcoin will not give you Bitcoin Cash. That's one of the risks. The second risk is if you send transactions after the August 1st, there might be something called a replay attack where they steal your Bitcoin Cash if you're just sending it on the Bitcoin chain. So two risks right there. Now let's then evaluate how big are these risks. Well, that's really up to your own opinion because no one can really put a value on Bitcoin Cash right now. It's kind of this side project that really happened and it hasn't really happened yet. So if you're looking at the exchanges or whatnot, some exchanges support and already trading Bitcoin Cash, like the futures of this. Some exchanges are completely saying, we don't want any part of this. It creates so much confusion. This is just a trash coin. So the views of this are very polarized. No one's really sure how much it's going to be worth. If it's going to worth pennies, dollars or even thousands of dollars afterwards. That's up to kind of the market to decide. And that's why a lot of people are recommending you to take your money out and put it in your own wallet and also start trading Bitcoin or sending Bitcoin after August 1st. So do keep an eye out for what's going to happen. Right now there does seem to be a huge push to create Bitcoin Cash, to make this new thing because there are people who believe that Bitcoin Cash can solve a lot of the scalability problems we have now. It's going to create much cheaper transactions and people are going to use it. So if it gets used and it's popular, then it's going to be worth something. Other people view it as absolute trash. This is just such a fastly, hastily put together project. Why do it now? And I'm actually on this camp. So if you ask my personal opinion on this, I'm actually on a camp that why should we do this now? It's causing so much confusion. It's causing the community to split apart when we need to stand united. And we are already moving towards improved scaling. With SegWit coming soon, we're going to handle more transactions on the Bitcoin already without increasing the block size. And if you really want to push for a larger block size, why not push for SegWit 2x? So it does seem to me personally that this new Bitcoin Cash is just a grab for attention. A kind of a protest against what's happening right now by the miners. I would love to hear what you guys think. Leave a comment below. If you guys have any more questions, I would love to hear that. And maybe perhaps I can make another video. Guys, thank you so much for watching. See you next time. See you next time.