BCH has just chain split to BCHA and BCHN following much controversy but Bitcoin Cash price has dropped 5%
Bitcoin Cash just hard forked into BCHA and BCHN after much controversy regarding a slightly unrelated technical detail on improving the difficulty adjustment and then a new BitcoinABC plan, now BCHA, to take a certain block reward rate to grow. A hard fork is an event that is expected to change the price. But traders have pulled the Bitcoin Cash price down from $ 255 to $ 240, down 5% over the past 24 hours.
Source: Coin Dance
Traders pushed the Bitcoin Cash price down by 5%
The hard fork follows a major disagreement between two BCH clients, Bitcoin Cash ABC (BCHA) and Bitcoin Cash Node (BCHN), after BCHA put forward the Infrastructure Funding Plan (IFP), a scheme that would levy an 8% “tax” on miner profits and re-channel the funds towards the network’s development.
This proposition remains largely popular among BCH users, who fear diminishing returns and fret that it will dash the community’s spirit of decentralization. Most major companies expect no disruption and signal that they are ready to respond to the changes. Still, many, such as Coinbase, have announced a suspension of BCH deposits and withdrawals.
Meanwhile, in the hours leading up to the hard fork, Bitcoin and Ethereum hit record highs in “realized” prices.
During the BitcoinCash network upgrade, which is now complete, a chain split occurred, resulting in two chains: BCHA and BCHN. BCHA is focused on building sound global money by rewarding the technical talent that makes it happen.
As it happens, miners and the market seem to have gone with BCHN, a generally anon team of coders, with the price of BCHA currently at just $13.50. Instead, the price of BCHN has changed only slightly from about $250 to $240 at press time.
BCH/USD 4-hour chart | Source: TradingView
It’s not clear whether there will be a BCHA as it has no blocks or miners while BCHN is ten blocks ahead at the time of writing.
That might matter regarding who gets the ticker with some exchanges, not listing BCHA at all currently. That’s the case for Kraken, and it seems to be the case for Bitstamp as well as presumably other exchanges.
So, in the end, this may turn out to be a fantom split where one chain kind of doesn’t exist, but at Bitfinex, it has a value of $13.5.
- Bitcoin Cash Hard Fork Took Place Amidst A Decision For A Network Upgrade And Mining Fee Distribution
- Bitcoin Cash Upgrade That Would Mandate All Newly Minted Blocks Donate 8% To Development Is Threatening To Drive A Hard Fork