Following last week’s massive surge of 22% for Bitcoin cash (BCH) there seems to be a minor pullback occurring. Fortunately, this retracement can be linked to the uncertainty revolving around what the upcoming hard fork. For those of you who may be unaware as to what a hard fork is or perhaps you’re joining us for the first time.
What is a hard fork and what does it mean for Bitcoin cash?
According to Investopedia;
“A hard fork (or sometimes hardfork), as it relates to blockchain technology, is a radical change to the protocol that makes previously invalid blocks/transactions valid (or vice-versa). This requires all nodes or users to upgrade to the latest version of the protocol software. Put differently, a hard fork is a permanent divergence from the previous version of the blockchain, and nodes running previous versions will no longer be accepted by the newest version.”
Usually, a hard fork would occur two times during the year as part of scheduled maintenance for Bitcoin cash. Regardless, this is normal as it is all part of a network upgrade, so you need not worry. As a matter of fact, Bitcoin cash came into existence as a result of a hard fork. However, perhaps this time is different.
Out of a hard fork usually, a new coin is created, i.e. Bitcoin cash. However, in the case of Bitcoin cash, usually, miners rallied behind forks. As a result of this, there was no need to create an additional coin as the hash power followed the fork.
Why is this time different?
History doesn’t repeat itself all the time and it seems to be the case right here. As a result of conflicts between various fractions relating to Bitcoin cash, this fork is going to cause a complete split. Furthermore, miners that previously would have followed the new chain on previous forks will not be doing so now with Bitcoin cash.
What are the potential outcomes of the hard fork?
A compromise has to be settled by the 15th of November and you will only receive new coins if you are already a holder of BCH.
Perhaps you’re wondering what are the possibilities of the upcoming hard fork? The most speculated features are as follows;
- Bitcoinunlimited – this will incorporate the sv & abc features to the same coin.
- Bitcoinabc – Similar to Ethereum, this would bring back new features such as smart contracts.
- Bitcoinsv – This variation would completely replace BCH scripts. Furthermore, it would increase the block size from 32mb to 128mb.
As far as we’re aware, many exchanges are supporting the hard fork however you should do your research for clarification as to which exchanges are supporting the hard fork. Again, to reiterate, you must be holding BCH in order to receive spilt chain coins.