Bitcoin Cash (BCH) has been the center of attention over the last few weeks because of the November 15th hard fork. It will be ‘tasting its own medicine’ given the fact that BCH came into existence out of a hard fork from Bitcoin (BTC) in 2017. BCH wanted to solve Bitcoin’s scalability problem by increasing the block size.
Is the difference of opinion as strong for Bitcoin Cash to be split into two? Roger Ver, one of the most vocal supporters of Bitcoin Cash claims that there is no real need for a hard fork.
The two opposing sides in the Bitcoin Cash hardfork are Satoshi Vision group and the ABC camp. It all started when ABC’s Bitcoin Cash developer Amaury Sechet announced the inclusion of a new software alteration to a planned upgrade back in July 2018.
Sechet’s idea included a new transaction ordering protocol which he defined as a ‘set of technologies allowing network participants to agree as much as possible on what the next block is going to look like.’
Sechet was under the impression his pre-consensus idea will help Bitcoin Cash, instead it led to two different sides with one supporting his idea while the other opposed it completely. One side called the ABC camp while the other was called the Satoshi Vision camp led by NChain.
What is crucial in such a hard fork is to realize which major groups support and oppose the idea. Bitmain, the mining giant who is a major holder of BCH is seen to support the ABC upgrade while the controversial Craig S Wright opposed the idea of the upgrade mainly due to his displeasure of Bitmain’s powers of burning BCH tokens. It led to Craig Wright releasing a paper called the ‘Satoshi Vision’ which outlined original specifications of the Bitcoin whitepaper by Satoshi Nakamoto but with a much larger block size of 128MB.
Satoshi Vision (SV) which is the opposing side of ABC’s idea has the strong support of Coingeek which is another mining powerhouse involved with BCH. According to Coingeek, most of the miner’s won’t approve Bitmain’s direction.
At the time of writing Bitcoin Cash is ranked 4th with a value of $518.01 and market capitalization of $9,041,189,729. With a hard fork, it could be detrimental to its already sloppy 2018 where there were slow adoption rates especially from merchants.
Two of the most prominent cryptocurrency exchanges which are Binance and Coinbase have supported the potential BCH hard fork. Binance was the first exchange to announce their support by ensuring that there will be a suspension of BCH deposits and withdrawals one to two hours before the hard fork is expected. Coinbase also announced their decision to support the hard fork in a post.
With a hard fork to be scheduled, similar to historical hard forks like Bitcoin Cash from Bitcoin, many cryptocurrency traders and investors are flocking to buy BCH. These individuals will benefit from the additional coins they will receive after the fork.
The two different implementations of Bitcoin Cash will be Bitcoin ABC and Bitcoin SV.
Certain exchanges such as BitMEX announced a one sided support on their Bitcoin Cash policy. The Bitcoin Cash contract on the platform will settle at the price of Bitcoin ABC and not include the value of Bitcoin SV.
The major deciding factor in the run up to the BCH hard fork are the technological advancements the miners are pulling out. For example Bitmain which is supporting Bitcoin ABC has deployed around 90,000 Antminer S9 machines to the Chinese region of Xinjiang. Bitmain has been talking to all local mining farms since late October to persuade them to host the 90,000 S9 machines.
Miners supporting Bitcoin SV like BMG and SBI have plans of mining Bitcoin SV as early as November 10th as a warm up to ensure maximum efficiency by the time the fork is initiated.
The Bitcoin Cash hard fork on November 15th is going to be very interesting with two sides of equal prominence in terms of marketing strategies and technological advancement.