CEX.IO company blog | Bitcoin Cash hardfork - the future of the new coin has yet to be decided

After the recent hard fork of Bitcoin Cash, which resulted in the emergence of two new networks – BCH ABC and BCHN –mining pools ignored ABC and chose BCHN. Dmitry Volkov, CTO of CEX.IO, expressed his opinion on how these events could affect the crypto market in the future.

Hardforks occur inconspicuous.Most of them are invisible or not attractedAttention is attracted to hardforts, in which the community has not come to a consensus, standswhether to introduce certain changes in the blockchain or not.some fundamental reasons based on the views on how exactly ideologically should develop thisBlockchain.Technically hard forks with the division of blockchain negatively affect the security of the network, as each blockchain individually becomes less powerful and more vulnerable, the single community is divided, the value of the coin decreases.

BCH's recent hard fork has split the miner's community over its approach to financing the project in the ABC's new fork chain.According to the protocol of this blockchain, the financing of the project will be financed byparts of the reward for the block that the miners receive.awards in favor of the project development team caused considerable outrage on the part of BCH miners.

As a result, 84.2% of miners supported the development of the project on the BCHN blockchain, and abc fork did not receive a single vote in support.Lower hashrate levels in this fork are likely to result into the fact that THE ABC will lose the network's computing power, and with it protection fromcentralization of emissions and, as a result, the lion's share of capitalization.

However, the hard fork and split of the BCH blockchainhas already forced many exchanges to suspend the deposit and withdrawal of BCH for some time, which is why arbitrage between exchanges has significantly decreased. The market has become less global, divided into clusters, with noticeable price differences between them. However, the fate of the ABC fork has not yet been determined and can still be significantly affected by the actions of the project team.

Also, the community has not yet fully decided on the price of BCH-coin from a smaller blockchain.Such uncertainty in the price may last for several more weeks, while the situation with the ABC blockchain stabilizes.

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