Bitcoin Cash (BCH) has finally made its hard fork, after months of tensions between developers. Does this signal the beginning of the end for altcoin, or the promise of a revival?
End of the Bitcoin Cash (BCH) funding debate?
Before undergoing this hard fork, the Bitcoin Aussie System project was crossed by heated debates throughout the year 2020. Last January, there was talk of introducing a „mining tax “ which would finance development network . 12.5% of the rewards would then have been automatically transferred to the development teams. The measure sparked such outcry from the BCH community that it was quickly canceled .
But the idea had gained ground. Amaury Séchet, r e sponsible Bitcoin ABC , an implementation of the Bitcoin protocol Cash had indeed forced a change to the next update of the network. Last August, he explained that the new rule would send 8% of BCH produced with mining to an address controlled by Bitcoin ABC , in order to finance development.
Bitcoin Cash (BCH) hard fork has taken place
It was this one-sided maneuver that forced the inevitable: a hard fork for Bitcoin Cash . The payment network therefore split into two implementations during its recent update. On the one hand, we have Bitcoin Cash ABC (BCH ABC) , which has set up this new financing tool. On the other side, there is the zero mining tax implementation: Bitcoin Cash Node (BCHN) .
BCHN supporters had historically opposed the network’s financing plans, citing too much centralization of operations. It should also be noted that the two teams were also strongly opposed to the new difficulty adjustment algorithm.
The result is therefore there: Bitcoin Cash split in two, while it had already experienced an exodus of its developers when Bitcoin SV (BSV) was created in 2018.
“The BCH has split into two chains – BCHN and BCHABC. BCHN mined the first block and is in the lead for the #BCH ticker. “
Immediately after the hard fork, it was in fact BCHN that had the most miners : 60% against nearly 40% for the version of Bitcoin Cash ABC. It is of course still too early to determine if the two versions will manage to hang on in the months to come.
What consequences for Bitcoin Cash?
The price of Bitcoin Cash experienced a sudden drop in the hours following this hard fork. As Bitcoin (BTC) and altcoins started to rise, it lost more than 10% in the space of a day:
We must therefore wait to see how the hard fork will unfold for the two versions of Bitcoin Cash. For now, it looks like BCHN has several cards in hand to become the dominant version . But a hard fork is never trivial and the Bitcoin Cash project could struggle to recover from it.