Bitcoin split and Bitcoin Cash created

Bitcoin dispute produces split-coin. A dispute between virtual currency developers gave birth to a new version of crypto coins after they failed to agree on software changes. On Tuesday a group backed a new protocol that allowed increased transaction volume and created a new variant called "Bitcoin Cash".

Tinuku Bitcoin split and Bitcoin Cash created

Bitcoin software code can be divided to create new variants. The initiative is led by a small group of Bitcoin miners who are mostly based in China. They have started what is known as a "fork" where the blockchain splits into two potential channels and starts active on August 1st.

A fork will be significant because it can create a new competitor for Bitcoin which remains the oldest and most valuable digital currency. Anyone who has Bitcoin before the split will have access to Bitcoin Cash.

Bitcoin made or "mined" by computer code and not regulated by any national central bank can be used to pay for products and services online and more and more in real stores. Miners run digital ledgers as blockchains to keep track of transactions that are theoretically impossible to manipulate.

But some developers have become impatient with the original technical protocol since its launch in 2009 in limiting the number of transactions. The new protocol support group allows an increase in transaction volume is likely to create a new variant is Bitcoin Cash.

The value of Bitcoin is very volatile, but the last few months have become a virtual commodity peer-to-peer traded close to US$3,000. After Tuesday's announcement, its market value was virtually unchanged at US$2,775.03.

The new unit is traded on the futures market for about US$300. Among other virtual coin floods that have appeared in recent years is Ethereum in July 2015 and Zcash which was launched in October.