Bitcoin Cash was first issued on August 1st, 2017 when Bitcoin was trading at $2,700. Being here for more than a year, Bitcoin Cash is facing some serious issues. Just a week ago on November 15, the network has done a ‘’hard fork’’ which basically means that the coin will be split into two competing versions: one for Craig Wright, other for Roger Ver.
Both of them have deeply divided the crypto community starting a fight on social media and this has probably led to a decline in the market overall. Before we go into explaining how things got here, let’s first explain what a hard fork is.
Basically, if there is no one central authority telling how the software should be further developed, disagreements can occur and users decide to split and divide on their own. From here, to ‘’fork’’ means to duplicate the code as it was and then taking it in a brand new direction.
The fork can be hard or soft. This distinction is usually found in blockchain technology and it is slightly different from other software forks.
With a soft fork, some of the nodes start accepting blocks that are newly created according to new rules but also continue to accept old-rules produced blocks. Although there is some difference between them, the validity of the blockchain is accepted as a whole by both rule sets.
With a hard fork, blocks are made according to a totally new set of rules that are deemed invalid to the old ones and vice versa. This brings the blockchain to split. From this point on, miners and users need to decide which rules to enforce.
How Did This Happen With Bitcoin Cash?
As we said above in the text, the bitcoin cash hard fork comes because of the two popular crypto players Roger Ver and Craig Wright.
Ver is a famous crypto investor and a bitcoin veteran. He was investing in multiple startups in the early days of bitcoin and he became extremely popular in 2017 for the hard fork that actually created Bitcoin cash.
Wright, on the other hand, is believed to be the creator of Bitcoin. He is now a prominent figure in the crypto world.
Bitcoin cash first started out as a response to Bitcoin’s inability to scale and also to try and fix the problems with the high transaction fees that were unsuitable for low-value day-to-day transactions. In order to be used as cash, Bitcoin Cash needed to aim for a high volume of transactions which it did by increasing the block size by 1MB.
With the hard fork on November 15, both sides wanted to again increase block size significantly but couldn’t really agree for how much. This is why two ideas emerged: Bitcoin ABC and Bitcoin SV.
Bitcoin ABC stands for Adjustable Blocksize Cap. With this model, node operators can specify the maximum block size they are willing to process.
The block size for Bitcoin SV will be 128MB which is a significant difference but it is not the major point for the division between the two sides.
Can’t They Just Work Together?
Despite the technical differences, many users believe that disputes such as this one between major crypto players should be resolved peacefully for the better of the cryptocurrency and the entire market. But this isn’t the case.
Craig Wright’s project has the majority of Bitcoin Cash hash-power and has vowed to destroy Bitcoin ABC after the hard fork. And this is not a lie. There is already a mining pool- SharkPool, that is extremely dedicated to attacking the network by mining empty Bitcoin ABC blocks.
Regardless of which projects comes first, the war between the two has decreased the price of Bitcoin Cash and many were discouraged to purchase it when they found out that this is more of a personal fight than a useful technology disagreement.
For people that truly want to invest or even find a cryptocurrency that works as equally as good as cash, there is no winner in a race like that.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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