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How well Bitcoin Cash hardfork turned out

11/26/2018
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Usually hardfork is a routine procedure that does not attract the attention of users. However, the last Bitcoin Cash update on November 14, 2018, led to a real hashrate war. It is with it that some experts associate the fall in cryptocurrency costs.

Why did Bitcoin Cash need hardfork

Absolutely any cryptocurrency needs to be updated periodically. The problem with the blockchain is that it is impossible to make even cosmetic changes unnoticed by the end user. Information is stored on thousands of devices, their support is critical for an update.

Therefore, the hardfork procedure was invented, during which a new blockchain instead of the old one appears. When updating a client, users also connect to this procedure. And usually, the “old” version of the program is left without an owner and its support stops. But the situation was completely different on November 14, 2018. The nChain team decided to launch their own coin based on Bitcoin Cash.

As a result, the former Bitcoin Cash split into two assets - ABC (BCHABC) and SV (BCHSV). Moreover, the procedure was not without some technical difficulties. In particular, both blockchains underwent hacker attacks. It is difficult to say exactly who made them - the fraudsters, the teams of the new coin themselves, or their competitors.

Consequences of BCH hard forks for users

Investors had expected the situation to be unstable as a result of the fork. Most cryptocurrency sites limited the input and output of funds in Bitcoin Cash. And everything seems to suggest that it was the right decision. Hacker attacks led to delays in conducting transactions and even their cancellations. Due to falling prices, cryptocurrency cannot be traced to whether investors have earned. It is only known that immediately after the fork, the value of the assets was $ 288.57 and $ 112.66, respectively.

But ordinary users have not lost anything at this event. It’s just that instead of one wallet with Bitcoin Cash, they have two. BCH ABC is stored on one of these wallets, and BCHSV is stored on the other. All stock exchanges have declared support for both assets. The split operation was automatic.

Miners also contributed to this confrontation. Each network needs their support for the normal operation, and power is distributed in the proportion of 59% versus 41%. Moreover, the dynamics of the cost of ABC and SV also speaks in favour of the former team. There are several reasons for this:

  • The “old” team already has a strong reputation;
  • a significant part of investors began to sell SV in anticipation of a fall in the rate
  • ABC mining is more profitable.

According to the latest data, Bitcoin Cash ABC is trading at $ 234.04, and Cash SV at $ 50.81 per share. That is, the one who managed to get rid of the new asset made a good deal. In any case, wallet owners should not be worried.

How will the hashrate war end

Ten days after the completion of the hardfork, the Poloniex Exchange removed all restrictions on working with these assets. In doing so, it warns that transactions require additional confirmation. The procedure will take up to 5 hours for BCHABC and up to 24 hours for BCHSV.

Perhaps in the future, it will be possible to reduce this time to acceptable values. The ABC team has already released a client update that fully protects against the “reorganization attack” problem. It promises that after installing version 0.18.5 the tools will be in absolute security.

Judging by the development of the situation, the users were again right. The ABC team copes with difficulties much faster. It was for it that the exchange platforms left the name Bitcoin Cash.

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