Virtual Currency: Split of Bitcoin causes accounting confusion

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The virtual currency Bitcoin is now split into two different parts which are the original Bitcoin and the new Bitcoin Cash. Customers that have the original Bitcoin should now collect the equivalent amount of Bitcoin Cash. However, this causes complicated questions regarding how it is to be declared for tax and legality purposes.

In order for Bitcoin to become a user friendly payment system that anyone can use worldwide, it needs to develop a new currency using comparable software, i.e. the new Bitcoin cash. The developers of Bitcoin Cash are unveiling the new software which permits 8 times the number of transactions per block, therefore making Bitcoin Cash transactions faster and efficient.

According to CNN Tech, one unit of Bitcoin Cash is worth about USD $240 whereas one Bitcoin is worth more than USD $2,700. Bitcoin Cash will only be successful if customers create the blocks for the Bitcoin Cash blockchain with the first block that was launched on Tuesday 1st August 2017.