Explaining Bitcoin Cash Hard Fork 2018
Posted on Dec 28, 2018 by Bitforx
If you have a subscription to Coindesk, Coinmarketcap or Bitcoin.com newsletters, then you might already know the news about Bitcoin Cash’s hard fork. Your inbox is probably full of reminders, articles and news announcements that mention a software update of BCH.
It took place on November 15th at 16:40 pm UTC and divided the blockchain and the token in two. As a result, we have a new, upgraded and past risk-free blockchain and a new cryptocurrency. They are known as Bitcoin Cash ABC and Bitcoin Cash SV.
The history repeats itself. Remember 1 August 2017? That’s when the first hard fork splitting of Bitcoin happened that created Bitcoin Cash. Bitcoin had two more hard fork splits, but it was time for Bitcoin Cash to repeat the same.
Why does Hard Fork Happen?
Hard fork means splitting/separating, and it’s the gem of the Blockchain terminology. A hard fork happens to create a better version of the previously known blockchain. It means that there’s going to be a second blockchain with more functionality and fixed security risks found in the previous system.
So here’s how the possible outcome looks like:
- Only one blockchain becomes dominant. The other one loses its value and community adoption.
- Community adopts both blockchains. They will co-exist together and function like separate blockchains.
- Community embraces both blockchains, but one is dominant.
In the case of August 2017, the crypto community adopted both Blockchains, and they are still co-existing. The users did not support the decision to split BCH. It looks like only one blockchain is going to be dominant, or favored. And it seems like Bitcoin Cash ABC is already winning the war, according to Investinblockchain.com.
How it affected the current Crypto market state?
The announcement about BCH hard fork was quite a shock for the cryptocurrency community. Several experts issued their opinions around the subject. Everyone is discussing their perspective on the event, and how it will affect the future crypto market. A few days before, Coinbase announced terms and guidelines to follow while the fork happens. Everyone was quite ready for the event.
But before the fork could even start, the Crypto market experienced a massive price drop of most of the cryptocurrencies. We witnessed the lowest price of Bitcoin in 2018. In just a few hours, Bitcoin went from 6 300 USD to 5 471 USD. Followed by Ethereum, XRP, and others.
Today, Bitcoin’s price is hovering around $4700 and 3800. Every altcoin was affected by the fork and the crypto market is experiencing some hard times.
We have seen altcoins following in Bitcoin’s footsteps. Bitcoin, as the first cryptocurrency and the influencer of the crypto market, tends to affect the price of altcoins. But we have never seen a shadowy altcoin like Bitcoin Cash influence the whole market.
Coinbase has stopped all trading on the BCH wallets on November 13, followed by other cryptocurrency wallets. They advises users to follow the guidelines and feel safe while Coinbase takes care of their funds’ security. Today all the transactions are working and crypto enthusiasts are adapting to the changes.
We already have the result of the split. If you are not already prepared to take the action, learn more about from Crypto and Blockchain news distributors. Which one is the best for you? Are you a Bitcoin Cash ABC follower? Or do you prefer to stay on the Bitcoin Cash SV’s side? Keep in touch with the latest crypto news and prepare yourself for further news announcements.