All the cryptocurrency market is closely following the events that will take place in the Bitcoin Cash (BCH) network. The fourth largest virtual currency in terms of market capitalization will be experiencing a hard fork that has divided the community between Bitcoin SV and Bitcoin ABC.
The network was undergoing upgrades every six months. Most of the times, the community agreed to support the same proposal. However, this time is different and the community is divided between the two upgrades that have been proposed. That means that the chain will split into two separate blockchains that will have, each of them, its own cryptocurrency.
At the beginning of November, during the first week, Bitcoin Cash experienced an impressive bull run. Its price grew 50% in just a few days and investors were placing their funds in the network expecting to have a good return once the hard fork occurs. BCH holders are going to receive the same amount of coins they have in the BCH network in both Bitcoin SV and Bitcoin ABC.
The pump has also taken place right after Binance and Coinbase announced that they were going to be supporting the upcoming hard fork in Bitcoin Cash. The intention was to be able to profit from the chain split with free coins for BCH holders.
According to the cryptocurrency trader Josh Rager, the sudden Bitcoin Cash price surge was related to a very strong hype around Bitcoin Cash.
During a conversation with CoinDesk, he commented about this:
“With current price action of BCH, it’s 100 per cent related to the fork and support from exchanges. No other major cryptocurrency is seeing a notable price change.”
There are also some exchanges that took the decision to launch crypto futures contract related to the blockchains that were going to split in the future. Poloniex, for example, decided to launch its pre-fork trading option on November 8 and stopping it on November 15. Bitcoin ABC and Bitcoin SV were traded around $250 and $175 dollars. Nevertheless, the difference among them has been shortened in the last hours.
Taking into account previous forks, after the chain splits, the price of the virtual currency tends to experience an abruptly decline. This shows that investors were only interested in the short-term profits that they could have to buy the new asset and to receive free coins in another network.
So, how should we be prepared for the upcoming hard fork? How do we follow it? The process is going to start at 16:40 UTC Nov. 15. Nevertheless, it would be possible to know which is the network that will prevail just some hours later.
On Twitter, there are two different sides. Each of them will be representing one fork proposal. Those user backing the Bitcoin ABC hard fork are Roger Ver, Amaury Séchet, Ryan X Charles, Chris Pacia and Jihan Wu.
On the other side, representing and defending Bitcoin SV, we have Craig Wright, Jimmy Nguyen, Calvin Ayre, Cobra and Eli Afran.
It will also be important to have neutral comments from other crypto experts on Twitter. There are several accounts, traders and analysts that can provide useful insights about the hard fork that is going to take place in Bitcoin Cash.
As we wrote some time ago at BitcoinExchangeGuide, BitMEX Research has launched a new website in which it would be possible to follow the most important events taking place during the hard fork. The website, which is known as Fork Monitor, will alert users once the hard fork goes live on the Bitcoin Cash blockchain.
Once the hard fork is executed, BitMEX announced that they will be following the prices for the Bitcoin ABC proposal rather than for Bitcoin SV. There are other exchanges that did not provide information about which side they will support, but in general, exchange platforms seem more prone to support Bitcoin ABC.
According to Coin Dance Bitcoin SV hs between 72% to 75% of the total hash rate of the Bitcoin Cash network. The most important for the cryptocurrency market is to know which will be the network that will have the largest hash rate to implement the proposal and win over the other chain.
Until now, there is not a clear answer about this issue, but in the next few hours, we might have a clearer idea about what will happen Bitcoin Cash’s future.