In Bitcoin Cash (BCH) a hard fork has produced two competing block chains. Thus at present also two crypto currencies, which are based on BCH, circulate. Background of the situation is controversy about how the technological advancement of Bitcoin Cash is to be financed.
Bitcoin Cash (BCH) experienced an event on Sunday, which has far-reaching consequences. Because with block 661,647 a disputed Upgrade led to the fact that now two camps support different Blockchains. The so-called hard fork was not unexpected, because node operators should decide between two versions of the update.
One proposal, propagated by the BCH ABC camp, envisaged that in future 8 percent of the newly mined tokens would be transferred from miners to developers as a compulsory levy to guarantee funds for the further development of Bitcoin Cash. The other camp, known as BCHN (Bitcoin Cash Node), rejects this arrangement and has therefore not implemented the compulsory surrender technologically.
Bitcoin Cash splits Blockchain – what happens now?
A hard fork that is not supported by all network participants automatically causes two block chains that are not directly compatible with each other to form. Current data suggests that the BCHN warehouse at Bitcoin Cash is gaining the upper hand. Because the distribution of the hashrate in the network shows little computer capacity behind BCH ABC with a further decreasing tendency.
In the apron leading crypto stock exchanges such as Kraken had signaled support for a Bitcoin Cash without obligation delivery. Also Roger Ver, one of the most prominent advocates of BCH, considers BCHN the better solution. Already in February an attempt at Bitcoin Cash had failed, which at that time still provided for a 12.5 percent levy on the miners. But at that time an inharmonious hard fork – as it is happening now – could still be averted by talks.
Investor confused – which Altcoin is BCH?
For investors in Bitcoin Cash, the current situation is complicated. They may not know at first glance which version of the crypto exchange of their choice is listed under BCH. So here you should definitely stay alert to avoid accidentally buying BCH ABC. Directly before the hard fork, the price of Bitcoin Cash collapsed by almost 8 percent, but since then it has been able to make up most of its losses.
It remains unclear for the time being whether BHC ABC will have enough hashrate behind it in the medium term to keep this block chain and version of Bitcoin Cash at a relevant level.
Conclusion: Image of Bitcoin Cash suffers from background controversy
Experts stress that the controversial Hard Fork can harm Bitcoin Cash. BCH plans to upgrade its network every six months, which theoretically could end in a hard fork with two bearings each time. Such uncertainty is poison to BCH’s ambitions to further establish itself as a means of payment in the online world. Finally Bitcoin Cash could be pleased for example to belong to the small circle of the selected crypto currencies, which are supported by PayPal. There like also elsewhere one has surely no desire to have to explain to customers constantly technological background to Bitcoin Cash and their consequences.
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