November 15th saw the hard fork of Bitcoin Cash, the fourth highest-ranking cryptocurrency, but what exactly happened?
Within Bitcoin Cash, there was a clash between some of the visionaries within. Bitcoin ABC, a node software provider, wanted to implement smart contracts and have functions that would allow more practical applications outside of just transactions. Meanwhile, Craig Wright’s nChain wanted Bitcoin Cash to improve scalability and transaction speed by increasing the block size from 32MB to 128MB. This clashing of ideas is what caused this hard fork to take place. As soon as this hard fork happened, it not only caused Bitcoin Cash to split into two but involved another as well. BCHABC (from Bitcoin ABC), BSV (from nChain) and Unlimited, that is from another provider, is trying to combine the visions of the other two coins.
Where are we now?
All exchanges froze the trading of Bitcoin Cash right before the fork, and since the split that hasn’t changed. Exchange’s seem to be waiting to figure out who will win this fight and be declared the true Bitcoin Cash. Some of the exchanges are allowing people to trade in the “futures” of BCHABC and BSV; however, they can not be withdrawn.
There are some severe trials ahead no matter which coin you’re backing. BitMEX Research reported that to mine BSV it costs 280 000 US per day, relative to what you are getting out of mining. Although the cost is leading people, even more, to back BCHABC, BitMEX Research posted that it is more difficult to mine BCHABC and therefore even more expensive.
Photo by Thought Catalog on Unsplash
The market seems to have, at least in the short term, favoured BCHABC, as today it was trading at $284 against BSV’s $69. BCHABC's higher price, as well as the fact that they have reached 100 blocks before BSV has shown BCHABC is definitely ahead in this battle. However, BSV has not conceded.
Craig Wright tweeted early this morning “In our hash competition, we have seen the ABC team bring on their strongest sprinters. We are just at the trials and not yet on the finals to Marathon and they have made a remarkable burst to do a 9.9 second 100m (unfortunately in the wrong direction)”
Although this situation is stressful, even if a little exciting, we can all be thankful it hasn’t, as of yet, affected Bitcoin. As with any war, it is hard to see a clear winner while it is ongoing, we will just have to wait and see.
-Written by James Hepburn
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