Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.
Two years after the infamous Bitcoin Cash hard fork of 2018, the news about the new one scheduled for November 15, 2020, is spreading, and this time, nobody seems happy about the new possible drama.
The Bitcoin Cash community is at the beginning of a new era – Bitcoin Cash hard fork may happen on November 15, 2020, splitting the network into two blockchains. The hard fork is a result of longstanding debates over development funding.
Three main implementations are working in BCH right now: Bitcoin ABC, BCHN, and Bitcoin Unlimited. There are several other ones. So far, the Bitcoin Cash network was running thanks to many developments made by the Bitcoin ABC team. Bitcoin ABC created the mining node that gathered a huge fanbase. It supports all the latest technology improvements for BCH, setting the way for Avalanche to come.
The reason why the community heats up is that the Bitcoin ABC development team is asking the miners to share 8% of the revenue with the coding team. According to the ABC announcement, 90% of the developer’s time goes to supporting BCH with the most secure code possible. Since the team cannot work for free forever, they have decided to change the core consensus rules.
Per the Infrastructure Funding Proposal (IFP), 8% of the miner’s block rewards will go towards the addresses of ABC developers. They are going to put the funds in place to keep making the BCH network a competing project. The funds will go to BCH community members, as well as to the team.
A number of notable BCH community members place votes against the ABC plan. They blame the development team for asking too much money. They mention “harmful attempt to split” the community, yet others praise the ABC team for incoming free money.
The Free Money Part
The beauty of the hard fork is that you get free coins. However, you must possess the parent cryptocurrency, in this case – Bitcoin Cash. When Bitcoin Cash has forked off Bitcoin, people were angry. However, the situation changed. Today, BCH has gathered a ton of subscribers, fans, miners, and appreciation. People in the BTC community received free coins in a new blockchain. They see that BCH works, is popular among traders, and it’s a legit coin.
Investment shark Tim Draper recently has bought some BCH. Unlike many, this longtime BTC supporter recognized BCH potential. Moreover, many of Bitcoin maximalists were praising Bitcoin Cash since 2019. They saw rapid evolution and growing community support around this coin. After Bitcoin SV, it will be the second BCH fork. Previously, Bitcoin SV was created via a similar fork in 2018. This time, the majority of BCH businesses and the community seem unhappy about the new drama.
Storing the Coins During Bitcoin Cash Hard Fork
Pay attention to a wallet where you store the coins. To receive free coins, your BCH must reside in a personal wallet. You can keep trading till November and withdraw from exchange two days before Bitcoin Cash hard fork begins. After the split, use the latest version of the ABC wallet to access your new coins. You can also return BCH to exchanges if you need it.
The simplest way to obtain new coins is to hold BCH at the moment of a hard fork.
However, if you’re an investor or a trader, you may need to watch the charts with extreme attention. During such forks, cryptocurrencies usually gain and lose in value, showing extreme volatility. Such chaos will likely occur with BCH too. Traders need to watch both coins and buy or sell carefully. The aim is to avoid losses after the BCH split, buying or selling both assets at the right time.
Where’s the Real BCH?
Looks like the exchanges will face a new type of challenge with this possible hard fork. Amori Seshe, the chief developer of Bitcoin ABC, states that ABC clients will support the BCH chain. This means the other chain will have to pick a name or argue over the old one with the ABC team.
Companies who won’t support the IFP say they are backing the real BCH by switching from ABC to BCHN node implementation. Since ABC clients will follow the new consensus rules, legacy block supporters could trigger a network split. This creates two blockchains, each calling itself BCH, as we see from the news. And the hash war threatens the stability of both coins.
What t do if supporters and haters of IFP gain equal hash power? Bitcoin Cash may be the first network in history where two different coins share the same philosophy, yet divide, or even disappear, over time.