Starting August 1 at about 8:20 am EST, the Bitcoin blockchain split and there was a new set of tokens – Bitcoin cash (BCC) – on the new blockchain. Bitcoin price dropped over 10% from $2944 to $2632 in about forty minutes.
It was partially agreed in the Bitcoin community that this split was initiated by Wu Jihan, the co-founder and CEO of Bitmain. Founded in 2013, Bitmain builds computers using chips specially designed to do mining computations, and it has now become the world’s largest Bitcoin hardware mining producer.
Aggressive supporter for Bitcoin Unlimited
Bitcoin Unlimited is a solution to solve Bitcoin’s scalability issue. Under the current system known as Bitcoin Core, Bitcoin blocks have had a limited ‘storage’ capacity of 1MB since the beginning.
However, Bitcoin Unlimited argues that the size of these blocks should be increased, because as Bitcoin has grown more popular, the capacity limits have caused congestion and led to lengthy transaction delays.
Wu Jihan believes that Bitcoin will have to support very high frequent payments. He is an aggressive supporter for Bitcoin Unlimited. Wu explicitly told Bloomberg in March, “We will switch our entire pool to Bitcoin Unlimited…we can’t tell how the hard fork will play out. We will only know by the time we get there.”