When the community of a crypto project does not agree on which direction the project should go, hard fork can easily occur. From one coin, two to two different versions of the blockchain can be created. Supporters of Bitcoin Cash know this best because Bitcoin Cash originated just like the hard fork of Bitcoin, and then forked again a year later.
Bitcoin SV was created in the second fork, and now, exactly two years later, another fork has happened. This time the spears are breaking around a whole new topic. Find out below which part of the community will get the right to the name Bitcoin Cash and when it was supported by exchange offices and crypto services.
Previous Bitcoin Cash forks
Bitcoin Cash has a history of hard forks that cannot be compared to almost any other cryptocurrency. It was created as a hard fork of Bitcoin in 2017, and then re-forked on BCH SV and BCH ABC on November 15, 2018. Then Bitcoin ABC became the dominant blockchain and got the right to be called Bitcoin Cash.
The separation from Bitcoin arose as a result of a debate within the community about whether to increase the size of blocks on the blockchain in order to increase the number of transactions that can be executed in one second.
The second hard fork was the result of a re-discussion of an additional increase in block size from 32MB to 128MB. Bitcoin SV (Satoshi Vision) was created in this fork. Exactly two years later, on the same date, another fork happens.
New Bitcoin Cash Fork
The need for a new hard fork arose when part of the developers gathered around the Bitcoin ABC (BCHA) team decided to propose a reduction in the reward of each block by 8% in order to use these funds to finance the further development of Bitcoin Cash.
Proponents of this idea claim that there are not enough funds to finance developers, and thus no progress on Bitcoin Cash as a cryptocurrency. They claim that other cryptocurrencies have much better designed development financing systems and that a similar system needs to be implemented in order for Bitcoin cash to remain competitive in the market.
A large part of the community is against this proposal, led by Bitcoin millionaire Roger Ver, better known as “Bitcoin Jesus”. This group is gathered around Bitcoin Cash Node (BCHN). They claim that such a levy is unnecessary and that developers do not have the right to “steal” 8% of the mining reward from miners.
We will present the arguments of both sides, so that you can better understand what is happening with Bitcoin Cash.
What are the arguments for Bitcoin Cash ABC?
Bitcoin ABC developers claim that financing development in this way is good for the project because that way they are motivated to do their job as well as possible and to invest the maximum in the progress of Bitcoin Cash. Improvements in Bitcoin Cash will result in an increase in its market value. This also means that miners would have better earnings and would not feel an initial reduction of 8%.
One of the arguments is that the community is certainly not only made up of miners, but also people who actually receive and send BCH. This part of the community would not bear any costs, and would benefit the most from the progress on Bitcoin Cash.
These developers also point out that it is impossible to expect that they will be able to work on improving Bitcoin Cash without the funds for that, and that it is logical that they will be compensated for their efforts to improve the network.
What are the arguments for Bitcoin Cash Node?
Roger Ver and Bitcoin Cash Node (BCHN) believe that BCHA only wants a miner’s reward and will not contribute to the development of cryptocurrency. They point out that in this way, the miners who ensure the security of the BCH network are harmed.
They also state that Bitcoin Cash has been operating free of charge for developers for 11 years (8 years as Bitcoin, after the fork as Bitcoin Cash) and that it has been constantly improved during that period. There is no need to allow one group of developers to substantially change how BCH has worked over the years.
They ask the question to which developers exactly these funds will belong and on the basis of which they deserved them. They state that there are already enough cryptocurrencies with this type of fee and that developers who want it can work on one of those cryptocurrencies instead of imposing payment of fees.
A drop in mining profitability could result in a large number of miners leaving the network. This would make Bitcoin Cash less safe to use and potentially more vulnerable to attacks.
Which version of BCH is more accepted?
As things stand BCHN will be the dominant blockchain. BCHN has convincing leadership in processing power. BCHN currently has a total hash rate on the network of 1.99 Eh / s, while BCHA has only 0.03 Eh / s. This means that the team gathered around Roger Ver will have the right to use the name Bitcoin Cash.
Although most services accepted BCHN as the “winner” in this duel, BCHA still has a chance to be an independent coin like BSV. The BCHA must have at least 10% of the hash power that the BCH had before the fork in order to have the opportunity to list on larger crypto services. The current price of BCHA is around $ 10 per coin, which is about 94% less than the price of BCH, or BCHN.
If you owned a BCH at the exchange office or in a wallet that will support both parties during the fork, you can get the same amount of BCHA you had at your BCH address. You must check this with the service you are using. Most major crypto companies have already expressed their views on this fork and which Bitcoin Cash it will support.