Bitcoin Cash Fork: A $1.6 Million Turnaround and Miners’ Choice

Estimated read time 3 min read

The Fork and Its Fallout

In an unexpected twist for Bitcoin Cash (BCH), the announcement of an impending fork on November 15 has sent shockwaves through the market. Grayscale Investments, a big player in the cryptocurrency space, reported a decline of $1.6 million in the value of assets under management for its Bitcoin Cash Trust. This abrupt dip has raised eyebrows and led investors to ponder what’s next for their favorite crypto asset.

Splitting the Blockchain: BCH vs. BCHA

Following the announced fork, the Bitcoin Cash network has officially split into two distinct blockchains. The community-driven Bitcoin Cash Node (BCHN) is currently in the spotlight, pulling ahead in the mining stakes. Interestingly enough, Binance’s mining pool had the honor of mining block 661,647—the last common block before the great divide. As of now, BCHN has seen miners racking up around 27 blocks, while the rival Bitcoin ABC (BCHA) is yet to see a single one mined. Talk about being left in the dust!

Exchange Activity: The $300 Million Influx

Amid the chaos, crypto enthusiasts have been busy moving BCH like hot potatoes! The month of November has witnessed over $300 million worth of tokens exchanged. One would think it’s like Black Friday in the crypto world, with traders feverishly cashing in or diversifying their holdings. It’s curious to note, while Grayscale has seemingly been stocking up on shares of BCHG during this period, the overall assets under management have dwindled—a puzzling riddle for the crypto community!

Understanding the Controversy: Coinbase Rule and its Critics

The crux of the BCH fork stems from Bitcoin ABC’s controversial proposal to implement a new “Coinbase rule.” This rule would earmark 8% of block rewards for a development fund led by Amaury Sechet, who calls the shots for BCHA. Supporters of BCHN are adamantly opposed, arguing that they can sustain their blockchain without imposing such a development “tax.” It’s a classic case of community versus capital—who will win the loyalties of the miners?

Market Response: Fluctuations and Future Predictions

As expected, the price of Bitcoin Cash has danced a volatile tango since the fork was announced. After reaching a peak of over $276 on October 23, BCH has settled into a more predictable range of about $230 to $280. At present, BCH is trading at $245.87, down 4% over the last 24 hours. And it’s not just Bitcoin Cash feeling the heat; Bitcoin has also taken a hit, sliding under the $16,000 mark to a dismal $15,903. Buckle up, because the crypto rollercoaster is far from over!

You May Also Like

More From Author

+ There are no comments

Add yours