Over the past few months, debates over the Bitcoin Cash hard fork heated up. It seems that exactly after two years, Bitcoin Cash is setting up to divide ways once again. Why is the chain that claims to be the original Bitcoin is forking? How will it affect the users and the cryptocurrency itself? We are here to explain everything and also show you how to buy Bitcoin Cash and claim the airdrop.
What is Bitcoin Cash? How did it start?
It all started when Gavin Andresen put forth the Bitcoin Improvement Proposal 101 (BIP 101) in which he proposed to increase the block size limit to 8 MB and double it every two years. There was a divide in the developer community and the debates continued for the next two years. In 2017, Bitcoin was at its peak, on the other hand, it struggled a lot to handle the load.
At one point, there were around 100,000 transactions waiting in the mempool.
The faction which supported the bigger block size included Roger Ver, Amaury Séchet, Jihan Wu. This group rejected SegWit2X and forked the Bitcoin blockchain on 1 August 2017 to form Bitcoin Cash.
The split took place at the block 478558 and the block size was increased to 8 MB. It was increased further to 32 MB and Bitcoin Cash now has the capability of handling 236 tx/sec. Though the chain was divided, Bitcoin Cash still has many similarities with the former like the same block time of 10 minutes and the SHA 256 mining algorithm.
We did a complete guide on Bitcoin Cash, go through it quickly to know more about BCH.
At the time of the fork, everybody who had Bitcoins received BCH at a 1:1 ratio.
But, why is everybody talking about the Bitcoin Cash hard fork 2020?
Because you can get free forked tokens for this BCH hard fork too. Want to know how? Read till the end.
Why is Bitcoin Cash Hard Fork happening?
This is the second time a BCH hard fork will be taking place. The first one happened on November 15, 2018, in which a dispute arose within the community about the block size increase.
Craig Wright and Calvin Ayre proposed to increase the block size further to 128 MB. There was no consensus within the community, the group which supported the original Bitcoin Cash protocol formed the Bitcoin ABC and the others moved to Bitcoin SV.
Wondering what happened after this? We covered it in the next section, keep reading.
Back to the present, exactly two years after the first BCH hard fork, there will be another split within the chain. The main reason behind the latest Bitcoin Cash hard fork is yet again another proposal and the disagreement in the community.
On August 6, 2020, Bitcoin ABC published a medium post in which an Infrastructure Funding Plan (IFP) was included. Under this new rule, 8% of the coinbase reward will be sent to a set wallet address. Bitcoin ABC claims that this fund will be used to hire more people and maintain already existing Bitcoin ABC developers. The proposed update was set to come into action on November 15th.
However, there was an immediate backlash in the community and many have rejected this proposal. Bitcoin.com responded with another blog post in which they mentioned the recommended node implementation for all their products will be Bitcoin Cash Node (BCHN) instead of the Bitcoin ABC.
Following this most of the mining pools have also signalled their support to the BCHN by tagging the blocks with the message, “powered by BCHN”. Some of the miners that support BCHN include Binance, AntPool, SBI Crypto, BTC.com, OKEx, BTC.top, Huobi and others. Data from Coin Dance shows a sharp increase in the BCHN blocks after the update release by Bitcoin ABC. As of writing, BCHN blocks were 541 in the last 1000 blocks.
Till September there were speculations that there may be a hard fork but it wasn’t confirmed.
— Roger Ver (@rogerkver) September 1, 2020
Finally, on September 2, 2020, Roger Ver put an end to the discussion through a tweet stating that Bitcoin ABC and it’s lead developer Amaury Sechet will split the chain and there will be a BCH hard fork on November 15th. Ver also thanked them for the airdrop.
Before we jump into how this will impact the users and Bitcoin Cash, let’s have a look some of the tweets on Bitcoin Cash hard fork.
Bitcoin Cash Hard Fork on Twitter
Our new release, Bitcoin ABC 0.22.0, is available to download ⚙️
A feature freeze is now in place and reliable funding means more business capabilities are coming soon!
Download now: https://t.co/fTCNGGhHHz
— Bitcoin ABC (@Bitcoin_ABC) August 18, 2020
This is where it all started. Will just leave it here.
If @rogerkver really believes that @Bitcoin_ABC has no chance of retaining the Bitcoin Cash name and BCH ticker after November 15th, why does he keep tweeting anti-ABC propaganda and telling them to “please stop”?#Bitsheviks #Commucurrency
— Ⓥin Ⓐrmani (@vinarmani) September 2, 2020
Coin Text CTO responded to Roger Ver by saying that if he is sure about keeping the name and ticker after the Bitcoin Cash hard fork then there’s no necessity to tweet about Bitcoin ABC.
— Roger Ver (@rogerkver) September 4, 2020
Roger Ver continued to share his thoughts after the announcement of the BCH hard fork but in the form of a video clip this time.
What is the aftermath of Bitcoin Cash Hard Fork?
The previous Bitcoin Cash Hard Fork resulted in a “hash war” between the two sides (BCH & BSV). Though it lasted for a few weeks, it eventually ended with both the chains staying alive. It was the miners who took the hit, the war resulted in a loss of over $5 Million in 2018.
For now, things appear to be in favour of Bitcoin Cash as more miners are signalling their support with BCHN blocks. It is still unclear how the situation on the other side, Bitcoin ABC, will be. So, we have to wait and see.
During the last BCH Hard Fork, there were severe price swings, the same thing can be expected this time as people may park their funds in the wallets only for the airdrop and sell them after receiving the forked coins.
How do I get the free coins after BCH hard fork?
Yes, you read it right. To get the airdrop of the forked coins, you just have to store your BCH in your wallet and that’s all.
After the Bitcoin Cash hard fork completes, you will be receiving the same amount of new coins as the BCH you already have in your wallet.
Wait, you don’t have Bitcoin Cash? Don’t miss this opportunity and get BCH on ChangeHero. We will show you how to get it the easy way.
How to get Bitcoin Cash?
On ChangeHero, you can get Bitcoin Cash by exchanging other cryptocurrencies. It just takes a few minutes to lay your hands on BCH, not literally, it’s digital – cryptocurrency 😉
Here’s what you have to do,
- Head to ChangeHero and select the preferred rate, the cryptocurrency you want to swap and input the amount. Click “Exchange”;
- Provide your BCH wallet address and click “Next”.
- Double-check the details and confirm the transaction;
- In the next step, send the amount in one transaction to the deposit address. For the Fixed Rate you have 15 minutes to send the funds;
- And that’s it. You will receive Bitcoin Cash in a matter of minutes to your wallet.
Don’t own any cryptocurrencies? No problem, you can instantly buy Bitcoin Cash with a credit card or debit card and for sure you will get the best rates.
Bitcoin Cash hard fork 2020 appears to be inevitable. We expect the split may have a bit more drama but hope both the chains will survive. In the end, it narrows down to the point that the cryptocurrency which has more utility and provides a true means of digital payment system what Satoshi envisioned will thrive.
If you have read it till here, for sure you would’ve enjoyed reading this article. Drop a comment below to start a discussion and follow us on Twitter, Facebook, Reddit and Telegram to be the first to get notified of our content.