Understanding the BCH Hard Fork
The cryptocurrency world witnessed a major event this month with Bitcoin Cash (BCH) undergoing a hard fork on November 15th.
Originally created in August 2017 through a hard fork from Bitcoin (BTC) to address scalability issues, BCH follows a biannual upgrade protocol. However, this latest fork revealed deep ideological divisions between two competing factions, resulting in two incompatible versions: Bitcoin ABC and Bitcoin SV.
👉 Discover how top exchanges are handling the BCH fork
The Competing Visions
Bitcoin ABC: Evolutionary Upgrades
Led by Roger Ver, the Bitcoin ABC camp advocates for maintaining BCH's current structure while implementing functional improvements:
- Enhanced 0-conf transactions for instant payments
- On-chain scaling via mempool optimization
- Improved fungibility without consensus changes
Bitcoin SV: Back to Basics
Craig Wright's Bitcoin SV faction takes a different approach:
- Restores original Bitcoin protocol codes
- Increases block size from 32MB to 128MB
- Prioritizes protocol stability over frequent changes
Market Impact and Current Status
Following the fork:
- Price volatility: BCH dropped ~142.05% to $193.79
- BTC correlation: The hash war contributed to Bitcoin's 2018 price low
Exchange responses:
- Binance lists both ABC and SV versions
- Other exchanges gradually enabling ABC services
👉 Track real-time BCH price movements
Key Questions Moving Forward
- Can BCH SV establish independent value without affecting ABC?
- How will Bitmain respond regarding SV price guarantees?
- When will market stability return post-fork?
FAQ: Bitcoin Cash Hard Fork
Q: What's the difference between Bitcoin ABC and SV?
A: ABC focuses on incremental improvements while SV aims to restore Bitcoin's original protocol with larger blocks.
Q: How long will the hash war continue?
A: There's no definite timeline, but ABC currently leads in accumulated proof-of-work.
Q: Should I invest in BCH now?
A: Caution is advised until the market stabilizes and clear winners emerge from the fork.
Q: How are exchanges handling the split?
A: Major platforms like Binance are listing both versions separately for trading.
Q: What caused the price drop?
A: Market uncertainty from competing chains and hash power competition drove volatility.
Q: Will this affect Bitcoin's price?
A: The hash war has shown correlation with BTC price movements, though long-term effects remain unclear.