Instead their new currency would have a block size of 8MB and ditch the data-dividing idea.
"I'm not as concerned about this except for the administrative nightmare that some people are going to have to go through or have gone through already pulling out of the various exchanges that weren't going to support it", ARK Investment's Wood said. The price has firmed since the US Securities and Exchange Commission ruled that so-called initial coin offerings being used to raise funds by blockchain projects, could in many cases be considered securities.
Direct holders of Bitcoin should receive both versions of the currency after the split, but details are still emerging after the software update began today.
By now, however, fears of a sudden split by way of BIP 148 have been avoided.
In this way, BIP 148's activation importance is arguably more symbolic, marking the avoidance of a split. The increase in block size is something that bitcoin miners have been pushing for with the fork. But bitcoin cash has yet to be mined.
Coinbase has tried to counter the outrage from its users by conspicuously advising its customers that it does not intend to support any new currency.
The group behind Bitcoin Cash is of the opinion that the world's first cryptocurrency - Bitcoin - was not fulfilling its intended goal of being a mode of transaction and aims to have a currency where transactions will be settled in minutes at just a nominal fee.
In order to find some middle ground, some business executives and miners came up with a proposal known as SegWit2x, which would increase the size of bitcoin blocks to 2 megabytes.
Bitcoin Cash isn't yet actually available, but should be once block 478559 gets mined.
Bitcoin Cash is different from its parent in two ways, 1) it directly increases the block size to 8 MB and 2) it does not implement SegWit. This "fork" might just be what is needed to take Bitcoin mainstream.
It's also possible to exchange bitcoin for USA dollars and other currencies.
But many developers - those working on Bitcoin's code or that of associated software - preferred the latter. That last point matters: if a client of an exchange makes a mistake when moving their bitcoin, they could end up suffering an unrecoverable loss. Following soon after Switzerland's financial market regulator authorized a Swiss bank to manage Bitcoin for its clients while in the U.S. the first Bitcoin options platform was approved last Monday by the Commodity Futures Trading Commission. What's more, it added that if the company decides to support Bitcoin Cash, it will spread the balances that accrue at the time of the split.
"Coinbase is not the best product for more tech savvy people who want 100% control over all aspects of their coins".
Regardless of how things play out with Bitcoin Cash, there will be a fair amount of confusion over the next few days. Don't forget to share your own views and suggestions with us.