Hard forks happen all the time here in crypto land.
They’re not always dramatic because they don’t always result in the splitting of that cryptocurrency’s community, but these kinds of splits do happen.
Our first introduction to this kind of emotional crypto divorce happened when Ethereum made some decisions that led to the creation of Ethereum Classic. Last year we saw Bitcoin split and birthed Bitcoin Cash, and after that we saw what seemed like a million other versions of Bitcoin split off as well, like Bitcoin Gold, Bitcoin Private Bitcoin Platinum, and the list goes on.
On November 15th the crypto crowd is now waiting to see what will happen when Bitcoin Cash hard forks. If you care about this one, here’s what you should know about the hard fork as well as some things to be aware of if you’re considering investing in Bitcoin cash in the next couple days.
VIEW VIDEO HERE
This hard fork is happening because there has been a split in the Bitcoin Cash community which has been represented in the forms of Roger Ver with Bitcoin ABC and Craig Wright with his Bitcoin SV.
It could be that Craig Wright has had his eyes set on a split like this happening far before it was actually announced. These assumptions are stemming from the fact that this new competitor, that is Bitcoin SV, which is the chain that Craig Wright is very vocally supporting, ties in very nicely with what his company Nchain has been working towards, that is his Teranode protocol and 1 terabyte sized blocks.
I am choosing not to venture down that rabbit hole of crypto drama.
Instead I would much rather focus on what’s actually happening with the Bitcoin Cash blockchain:
- Which side the miners have been signaling
- How the futures tokens have been trading leading up to this split
- Which exchanges will be supporting this new chain.
Cutting right to the chase, the miners are going to want to chose the chain that will be most profitable.
We could talk all day about which side has more miners backing it, but this can easily and quickly switch. There’s another interesting thing that’s been going on and that’s the trading of these BCHABC and BCHSV IOU tokens which are trading on Poloniex and HitBTC.
This often happens before anticipated hard forks and it is an indication of the future price of the coins involved.
There are a lot of people who think it’s logical to purchase Bitcoin Cash now just to take advantage of getting some free coins.
The thing is, those coins aren’t free.
The increased volume has created a BCH price hike. You’re essentially paying a premium for the sake of getting a coin who’s future price is unknown. Not to mention the fact that BCH will no doubt see a down turn after the fork. Not to mention the fact that we’re seeing this split in a bear market, a market where people are hungry for any kind of return.
So we are seeing people pile into a coin (BCH) not necessarily for its tech, most likely because of the media hype, and they only want the chance to get some free coins, again not necessarily for its tech.
Once the hard fork is over, there is a very good chance that both of these coins will be dropping in value as these people take their new coins and dump them because again, we are in a bear market and I'm sure people are hungry to see any kind of positive returns.
In a time when most seasoned traders have scaled back from making risky trades, the volume we’re seeing in BCH preceding this fork is either an indication of improved sentiment, or evidence of traders who are about to learn a hard lesson.
If you’re wondering which exchanges have announced they will be supporting the new Bitcoin SV chain, I’ve found the following list:
- OKex
- BitForex
- Binance
- Huobi
- Upbit
- Coinbase Pro
- Coinsuper
Also be aware that the wallet BitPay will not support Bitcoin SV.
I want to wrap up this video with these thoughts, take a look at the situation like this, the political components, on one side we have Roger Ver with Bitcoin ABC.
On the other side there’s Craig Wright and Bitcoin SV.