"Bitcoin cash," the cryptocurrency created as a result of a split in the bitcoin blockchain, may not have long-term potential, industry insiders told CNBC, but a key event down the road could give it more backing.
To recap, the underlying bitcoin technology known as the blockchain underwent a "fork", meaning it split to create a new digital currency. This happened because the community disagreed on how to increase the capacity of the blockchain, which was struggling with record-high transaction times for bitcoin.
As a result of the split, "bitcoin cash" was created. And it has had a volatile start. It hit a high of just over $727 on Wednesday before more than halving to just over $310 in the space of a few hours, according to price tracking site Coinmarketcap.com.
Many experts said there would likely be some short-term trading activity, but have expressed doubt over the longer-term potential of "bitcoin cash".
"Over the longer term, Bcash's prospects are limited due to the relatively small size of the community maintaining its blockchain, developing its software and using the cryptocurrency," Aurelien Menant, founder and CEO of cryptocurrency exchange Gatecoin, told CNBC by email.