Friday, December 9, 2022

Bitcoin Cash Is Born: What Is the Likelihood of a Successful Hard Fork?

Bitcoin Cash Is Born: What Is the Likelihood of a Successful Hard Fork?

Tomorrow, August 1, is the big day for the future of Bitcoin. It looks like a Bitcoin Cash hard fork is inevitable, but what we don’t know is whether or not it will actually go anywhere. Let’s take a look at whether BCC will flourish or flop.

Also read: Bitcoin Price Likely to Hit $3000 On Day Before Hard Fork

How Much Support Does Bitcoin Cash Really Have?

In the last few days leading up to August 1, several major exchanges and wallet providers released their plans for the hard fork.

Some said they would not support Bitcoin Cash at all, while others said they would support the token as an altcoin to allow users to split their coins if they wish.

No companies, however, said they would support BCC as the one, true Bitcoin. Instead, they stated intention to support Bitcoin itself, or get behind the longest chain — meaning they would recognize whichever blockchain wins.

Here is a list of major bitcoin exchanges and their stances on supporting BCC trading:

Note: This list is an excerpt of a larger spreadsheet compiled by 99Bitcoins.

  • BitMEX: No
  • Bitstamp: No
  • Bittrex: Yes
  • BTCC: Yes
  • Coinbase: No
  • Gemini: Waiting to see if BCC is viable
  • itBit: No
  • Kraken: Yes
  • OkCoin: Yes
  • Poloniex: Possibly
  • ViaBTC: Yes, at a 1:1 ratio

Support for BCC is much more neutral in the wallet side of the Bitcoin industry, with most major wallet providers either supporting the coin or refraining from actively blocking users from accessing it after the split.

The three major hardware wallets — Trezor, Ledger and Keepkey — will all support BCC. Trezor and Ledger have actually developed software tools to assist users in splitting their coins. KeepKey will allow BCC holders to swap between BCC and bitcoin via Shapeshift.

The latest version of Electrum, a popular desktop wallet, is capable of coin splitting. However, Electrum developers do not officially support BCC. In fact, they claim no ownership over the “Electrum Cash” wallet — an unauthorized fork of Electrum’s software.

Jaxx, a highly popular wallet with support for multiple cryptocurrencies, said that it will support BCC. However, users will not be able to transact BCC with Jaxx until it completes full integration.

What About Bitcoin Miners?

At press time 89.6 percent of the world’s miners support SegWit2X as it is intended — that is, SegWit immediately, with a non-contentious hard fork in a few months to increase the block size. SegWit itself, the first part of SegWit2X, currently has 100 percent miner support.

Bitcoin Cash SegWit

Thus, based purely on the data, it seems that BCC has no actual, significant support from miners.

Even the mining pool — whose owner, Roger Ver, is the face of the anti-Core, anti-SegWit movement — told the public it will only turn its miners towards BCC in the event the scheduled hard fork does not activate under SegWit2X.

What Is Bitcoin Cash and Why Is It Happening?

BCC came onto the scene in June when Bitmain founder Jihan Wu introduced the User Activated Hard Fork (UAHF) as a contingency plan in case Core supporters attempted to force a soft fork with BIP 148.

The UAHF became Bitcoin Cash when cryptocurrency exchange ViaBTC said it would list a token of that name in support of the hard-forked Bitcoin.

And now, despite its original intention as a fail-safe, Bitcoin Cash will make an attempt on Bitcoin’s market dominance regardless of community and miner support for the current SegWit2X solution.

Do you think Bitcoin Cash will pick up any steam? Share your thoughts in the comments below. 

Bitsonline Email Newsletter