Bitcoin Cash (BCH) undergoes a hard fork and the price soars 20%—what happens next?
Bitcoin prices surged sharply on November 2 and continued to rise even more around 1 a.m. on November 5 after the weekend.
According to COINGeko, Bitcoin’s price rose from October 29 (1 BTC = 711,690 yen) to November 7 (1 BTC = 752,060 yen),approximately 0.6% increaseover this period.
Bitcoin Cash (BCH) up about 20% in the last 7 days
Bitcoin Cashwas created in August 2017 through a hard fork in order to extend Bitcoin’s technical limits.hard fork.
The purpose of the hard fork was to increase Bitcoin’s block size (※). The block size was expanded from 1MB to 8MB, and later updates allowed BCH’s block size to32MBby May 2018, significantly improving processing capacity.
Block size is the amount of information that can be written in a single block on the blockchain.
A smaller block size increases the cost of generating the next block, leading to higher fees and delays in transaction confirmations.
About the BCH split issue
At the center of the Bitcoin Cash split issue is the dynamic between “Bitcoin ABCVSBitcoin SV.”
Bitcoin ABC is one of Bitcoin Cash’s largest clients and argues that the following features should be added to the Bitcoin Cash hard fork:
- Introduction of CTOR(to reduce computational load)
- Enforcement of op codes
- Enforcement of minimum transaction size
- Enforcement of a “push only” rule
- Enforcement of a “Clean stack” rule
There are companies strongly opposing the above Bitcoin ABC claims.
Among them is the blockchain company nChain, led by self-proclaimedSatoshi Nakamoto.
The group around nChain, known as the “anti-Bitcoin ABC faction,” is called Bitcoin SV (Bitcoin Satoshi Vision) and has argued as follows:
- Expand block capacity from 32MB to 128MB
- Re-enable four op codes that were previously prohibited
- Increase op code scripts from 201 to 500
These discussions have involved notable figures such as Ethereum co-founder Vitalik Buterin and Jihan Wu of the major Chinese mining company Bitmain, who both participate in the debate,and both support Bitcoin ABC’s position.
Price rise of Bitcoin Cash (BCH) stemming from the split issue
As noted above, the Bitcoin Cash split issue remains unresolved, with no consensus reached between the parties.
In such a situation, prices would normally fall, yet Bitcoin Cash rose nearly 20% in the past 7 days.
A backdrop to the price rise is ironically the existence of the “Bitcoin Cash split issue.”
Among the reasons for BCH’s price increase is thatBinance,Coinbaseand other overseas major exchanges,SBI Virtual Currenciesannounced that they would support the virtual currencies arising from the split,which contributed to the price rise.
Even if Bitcoin Cash were to split, the fact that the split coins would be listed by major cryptocurrency exchanges soon provided reassurance and contributed to this price rise.
SBI President Naoaki: View on the Bitcoin Cash (BCH) split controversy
In early October, SBI’s president, Naoaki Kitao, spoke...Read more below ⇩
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