New Bitcoin Cash Fork Is A Double Edged Sword For Hodlers

  • Post comments:0 Comments
  • Reading time:7 mins read

The fork is a double edged sword for hodlers. On the one hand, there’s no doubt cryptocurrencies are becoming more accessible every day. What’s more, experts are starting to see the value in blockchain technology and its potential applications. However, the fork has created some uncertainty among investors, which could have a negative effect on cryptocurrency prices.

What Is Bitcoin Cash?

Bitcoin cash is a cryptocurrency created via a hard fork of the Bitcoin network. The hard fork took place on August 1, 2017, at block 478558. The purpose of the fork was to increase the number of transactions that could be processed, due to concerns about scaling.

This was an attempt to address scalability issues with Bitcoin itself by increasing transaction size limits. Because it gave users the ability to use more transactions at once, it came with a higher transaction fee – something that has made it less popular than Bitcoin itself. On a positive note though, this has meant that there’s been less stress on the network overall.

How Has It Affected Cryptocurrency Prices?

Although it hasn’t had much of an impact so far, investors are still wondering what might happen if more people start using Bitcoin cash instead of Bitcoin itself. This is because many people hold both

Although Bitcoin Cash has been around for over a year, it was only recently that the cryptocurrency experienced a massive rally, catapulting it to the top-five cryptocurrencies by market cap.

Now, the price appears to be dropping again because of a fork in the network. Hard forks are when the network splits into two, each following different set of rules. It is usually due to disagreement between developers and miners over changing the protocol of the blockchain.

But why would this affect Bitcoin Cash prices? After all, hard forks are meant to upgrade and improve the original cryptocurrency.

Hard forks can be double-edged swords for hodlers (crypto investors who believe in long-term growth). On one hand, they get more coins as a result of the fork. But on the other hand, these new coins eat up at their existing stash of coins by splitting them in half.

The fork was originally scheduled for November 15th, but was postponed until the 13th of November. Bitcoin Cash prices have been trading range bound since the hard fork was announced, and the looming hard fork saw spikes in the volatility of Bitcoin Cash.

The day before the hard fork, Bitcoin Cash prices spiked to $2,400, only to fall back down to $1,500 before stabilizing to $1,800. Since then, price action has been range bound between $1,600 and $1,800.

A Double Edged Sword

Bitcoin Cash prices were up 20% on the day prior to the hard fork. This is despite the fact that Bitcoin Cash is a fork of Bitcoin itself, which means that any Bitcoin holder automatically owns an equivalent number of Bitcoin Cash tokens. (At block 478558)

As a result of this free money effect (known as an airdrop), people had a vested interest in acquiring more coins before the fork took place so they could receive more free forked tokens. The net result was that there was more demand for BCH than BTC at this time.

However, since there is now another crypto coin in circulation which has claimed to be ‘the real’ BCH due to its bigger block sizes and

The Bitcoin Cash (BCH) hard fork is just two days away, and already the community is in turmoil about what comes next. The BCH network is set to undergo a hard fork on November 15, 2018, which will see it split into two different coins: Bitcoin Cash ABC, and Bitcoin Cash SV. This blog is all about how this hard fork will affect the prices of these cryptocurrencies.

The Bitcoin Cash (BCH) hard fork is just two days away, and already the community is in turmoil about what comes next. The BCH network is set to undergo a hard fork on November 15, 2018, which will see it split into two different coins: Bitcoin Cash ABC, and Bitcoin Cash SV. This blog is all about how this hard fork will affect the prices of these cryptocurrencies.

As with all cryptocurrencies, the value of BCH depends on the laws of supply and demand. If there are more buyers than sellers, then the price goes up. If there are more sellers than buyers, then the price goes down. The same law applies to any other commodity or currency; it’s simple economics.

What’s new here is that there are two competing versions of Bitcoin Cash now: BCHABC and BCHSV. While both networks can still

Bitcoin Cash (BCH) has just experienced a hard fork. The network split occurred on Nov 15, 2018 and it was the result of a disagreement between the community over proposed upgrades to make the network faster. Bitcoin Cash is now two separate coins: BCH ABC and BCH SV.

The price of Bitcoin Cash before the fork was $430, but after it plummeted to $325.

Bitcoin cash holders were given an equal amount in new coins on both networks at the time of the split. Meaning that someone who owned 100 BCH before the fork will now own 50 BCH and 50 BAB.

Despite this chain split which has led to massive confusion and uncertainty, it’s worth noting that bitcoin cash is still up around 30% over the last six months. This is great news for BCH hodlers as well as ABC supporters who have been holding since its inception!

However, it remains unclear whether or not bitcoin will recover from this drop in price due to all of these forks happening within such short periods — especially if there continues to be uncertainty about where things are headed next month or so with regards its future development roadmap being implemented successfully (see also: SegWit activation).

Bitcoin Cash, the cryptocurrency that was created in August 2017 when Bitcoin forked, just made another fork. It split into two different cryptocurrencies at the beginning of November. This new fork is called Bitcoin SV.

Bitcoin Cash has been in a downtrend since it peaked in August this year at $850. Now, it trades below $200. The reason for the downtrend is a disagreement between the developers and miners about what to do with Bitcoin Cash’s blockchain.

The hard fork will have an effect on prices

The hard fork or split could have an effect on prices moving forward. But it could go both ways. On the one hand, there are now more coins in circulation. If demand remains constant, supply increases and prices decrease as a result. On the other hand, if this new Bitcoin Cash fork will cause more demand for either of them then prices will rise instead of falling due to increased supply.

What caused the Bitcoin Cash split?

There are three main reasons why Bitcoin Cash split into two different cryptocurrencies: technical disagreements between developers, mining centralization and legal threats towards miners and developers who want to change parts of the protocol that they don’t agree with.

The recent Bitcoin Cash hard fork on November 15th, 2018 activated a lot of confusion for many cryptocurrency holders. The fork resulted in two coins, Bitcoin SV and Bitcoin ABC, with the same history up until that point. If you held Bitcoin Cash (BCH) leading up to the fork, you now hold an equal amount of both! This means that the total value your BCH holdings is likely to increase by 50% after the fork.

In response to the new coin, Coinbase has announced that they will be supporting both chains. The company will also be crediting their customers’ accounts with both tokens, just as many other major exchanges have already done. This means that if you held your BCH on Coinbase before the fork you don’t need to worry about anything at all; you will automatically receive your free tokens!

However, if you left your BCH on another exchange or in a wallet where you control your private keys, things can get a little more complicated. You may need to sell one chain and hold onto the other depending on which chain starts to rise in price and which chain gets listed first on exchanges.

Leave a Reply