Bitcoin Cash (BCH) May Split into Two Versions after Hard Fork
A planned hard fork for Bitcoin Cash expected to run smoothly could turn contentious as Craig Wright may continue working on an incompatible version.
The November 15 Bitcoin Cash (BCH) hard fork may end up creating two versions of the coin as Craig Wright has proposed an incompatible one, claiming to support “Satoshi’s true vision.”
The Bitcoin ABC update was announced in August and contains several upgrades to improve network efficiency and reduce fees. The fork has gained the support of most leading exchanges, including Coinbase, Binance, and KuCoin. However, another version of BCH may launch, potentially creating a situation similar to the SegWit2X debates surrounding Bitcoin last November.
Coinbase has suggested it may allow users access to both chains if Bitcoin Cash splits into alternative versions:
“In the unlikely event that multiple viable chains persist after the fork, Coinbase will ensure that customers have access to their funds on each chain.”
In the case of Bitcoin, opposing teams almost created a situation where two chains with similar properties would have competed for the Bitcoin moniker. With Bitcoin Cash, it is unknown how the two networks would be supported. Wright’s alternative has found some support on perceived merits.
The Bitcoin ABC developer team went ahead with a roadmap and scaling solutions which may not be accepted by the entire community. There are even suggestions that some of the miners would stop mining the new chain with the updates. And while there is tentative support for the Bitcoin SV version, it will become clear if the new chain is viable only after the update.
However, the contention and the potential for two chains emerging is having a positive effect on the otherwise stagnant price of BCH. As of 7:30 UTC on Monday, the asset continued its climb, reaching $553.03 and growing 26% in the past week. The price perked up over the weekend, rising from the $420 level where it had lingered for weeks. The possibility of creating two competing chains is added to the trend of bidding BCH upward for quick gains.
Most traders now believe the upcoming hard fork has sparked just a temporary pump. With no support from exchanges, an alternative chain would most probably falter.
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