Opinions

Analyzing BCH Prices Before The Much Anticipated Fork

Bitcoin Cash prices have seen a high of $638 in the past week but have dwindled down to around $544 as the market has seen an overall dip over the last three days. BCH, the fourth largest crypto by market cap has come down approximately 0.5% over the last 24 hours and around 1.7% over the past week. Its market is valued at around $9.4 million and trade in the past 24 hours show $641 million worth of BCH market swapped. The top BCH swapping exchanges include Lbank, Hitbtc, Binance and Huobi Pro while the dominating trade pairs have been with USDT, BTC, ETH and USD.

Analyzing BCH Prices Before The Much Anticipated Fork
Source: CoinMarketCap

The fork

Scheduled for November 15, the BCH hard fork will result in two independent blockchains of Bitcoin Cash which will form two separate coins. The fork has come about as a consequence of a divide among the BCH community over increment in the block size. The split parties have come to recognize themselves as Bitcoin SV (SV for Satoshi Vision) headed by Dr. Craig S Wright and Bitcoin ABC, notably formed by binance CEO Jihan Wu and Bitcoin guru Roger Ver.

The massive slump in BCH market seen of late is notably being credited to the upcoming fork. The squabble between the pioneers of Bitcoin ABC and Bitcoin SV has been a highlight of the market over the past many months as the former is looking to inject the Wormhole hard fork while the SV takes up the implementation of nChain protocol for Bitcoin Cash. The interest at the ongoing saga between SV and ABC is at its all-time peak, with ABC gathering support from various major exchanges as a result of Jihan Wu speaking against Craig Wright. While the latter himself has been at a war of words with Roger Ver. The two have made for excellent viewing, but the repercussions of this discord is there to be seen in the plunging market.

The first few bits from this war of words is shared below where Dr.Wright believes that for smaller blocks, the market has BTC and BCH blocks need to move to 128mb. He said in September:

The answer is simple. You run ABC in November, you are incompatible and you learn how bitcoin was designed from the whitepaper. Basically, you go bankrupt. Bitcoin is competition We have no problem orphaning your node, we earn more.

To this, Roger Ver replied:

The BCH community should NOT compromise with Craig Wright to “avoid a split” and should embrace it as an opportunity to conclusively ostracize and reject him. Bitcoin Craig (BCC) can go take the ticker symbol from the now-defunct cryptocurrency to which it is a fitting successor.

Verdict

So what initially started out as the fight to fork or not to fork, has eventually, at least apparently, been won by SV, as we head towards the scheduled fork on November 15. Both parties claim that they have majority of the miners on their side and that they carry the required hash power to implement the fork. The eventuality of this saga will be unfolded in a matter of days, but as per the market is concerned, the reds pretty much signal the lack of trust from investors and traders, who are giving up the cryptocurrency at least for the time being.

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Razi Khan

Researcher, Electrical Engineer and a teacher, Razi is one who takes great intrigue in the prospects of blockchain and cryptocurrencies (BTC in particular) while contributing a critical approach over the subject regularly. Email: razi@blockpublisher.com or contact the editor at editor.news@blockpublisher.com

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