BCH's unprecedented hard fork is heating up. What will happen on Thursday?

13 Nov, 2018
by Arthur Sillers
News
BCH's unprecedented hard fork is heating up. What will happen on Thursday?

Bitcoin Cash’s (BCH) hard fork is closer than ever, and lines in the sand continue to be drawn. The controversial update could lead to an unprecedented split in a cryptocurrency, and traders are taking all kinds of positions on what the result will be.

BCH’s planned hard fork has led many to speculate that the cryptotoken will split into two blockchains, with some miners running the proposed update on Bitcoin ABC software, while many are already planning to make a switch to Bitcoin SV, effectively splitting the cryptocurrency into two versions.

According to CoinDesk, some estimate that almost three quarters of the hash power of the network will make the switch to the SV version. Furthermore, those in the SV camp have been strong in their convictions, with Craig Wright taking to Twitter to gloat and threaten the destruction of the ABC networks.

Ahead of the possible split, trading of BCHSV and BCHABC has already been differentiated, with the old BCHABC trading at over $400 and BCHSV trading at $136, but rising. Traders are also looking to the fork as a crucial moment for the price of BCH, split or not. According to Coindesk, the number of traders taking short positions and long positions on BCH has spiked. On Bitfinex, the number of short positions has outpaced the long positions, indicating that traders feel that a price drop for BCH will follow immediately from the fork.

Meanwhile in Asia, according to Bitcoin Exchange Guide, traders continue to buy up BCH in preparation for the split. By buying up BCH before the update, traders are hoping to get ‘free’ BCH once it splits. If a trader owns a BCH before the fork they will own a BCHSV and a BCHABC after the fork, essentially doubling their cryptocurrency.

This hard fork is unique in that both sides are viable. Alexander Mashinsky recently described to Chepicap how forks follow the logic of natural evolution noting ‘Satoshi’s design is basically like how nature operates- nature constantly forks the DNA. If the fork is better than the original- then people just join the fork.’

Usually a fork leads to one version of a cryptocurrency dying out while a (presumably) stronger version lives on. In this case, it is a distinct possibility that a cryptocurrency will turn into two relatively equal cryptotokens. This is a possibility that has no analogue in traditional markets, and will be a unique creation of cryptotrading.

What is sure is that BCH will be watched closely in the next few days, and the results of Thursdays fork will have a huge effect on the cryptocurrency at large.

Read more: Market manipulation? Binance system upgrade coincides with BCH fork

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Read more about: Bitcoin Cash (BCH)

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