Monday, December 5, 2022

Day One of Bitcoin AF (After Fork) – Now the Market Can Choose

Day One of Bitcoin AF (After Fork) – Now the Market Can Choose

The Bitcoin hard fork happened on 1st August and, if you’re reading this, the world has not ended. Yet. It’s still impossible to predict what the market will decide long-term, so let’s take a look at some of the events from day one of Bitcoin AF (after fork).

Also read: BitKan Adds Bitcoin Cash to Wallets After China Shows Interest

If your opinion is that Bitcoin’s main blockchain is the one true Bitcoin and everything else is and altcoin and/or irrelevant, then nothing happened at all on 1st August. Some miners left the network. However, for the purposes of this article we’ll assume “Bitcoin Cash” has generated enough media and community interest to take a place in the Bitcoin narrative.

CNBC Bitcoin Upgrade Fork
But what did CNBC mean by “upgrade”?

Block #478559 Marks the Hard Fork

ViaBTC mined the first “Bitcoin Cash” block, #478559, a few hours after Bitcoin ABC software forked the network by accepting blocks larger than 1MB. That block, 1,915 kB in size, was rejected by Bitcoin miners and the two blockchains went their separate ways.

To assess what happened after that, it’s better to look at what didn’t happen — based on predictions.

The BTC price dropped from $2,900 USD but did not crash. At press time, it still sits at a respectable $2,700 USD.

The Bitcoin Cash (BCC) price didn’t tank either. Both CoinMarketCap and CoinCap listed the new token, which now sits in third place behind BTC and ETH, around $430. Kraken, ViaBTC, and Bithumb (possibly Huobi and OKCoin) are the most prominent exchanges trading the coin at the moment.

Price predictions are still divided between hodlers and dumpers.

Luke-jr Facebook Bitcoin Cash

Miners and Exchanges Still Cautious

Not surprisingly, Bitcoin Cash didn’t instantly convince all miners to switch their entire hashing power to the new chain. There were also no critical software bugs, and (probably) no serious DDoS attacks on the new network.

According to some industry insiders, though, miner support was still impressive. “What was unexpected is that I didn’t expect it to gain so much traction this fast,” one told Bitsonline.

The Blockchair BCC block explorer recorded that ViaBTC mined only three of the first eleven Bitcoin Cash blocks. The others are listed as “miner unknown”. The only other pool to officially support the chain is, who say it’s not them.

Bitmain CEO Jihan Wu said the fork meant both sides of the scaling debate could use technology to make their case in the market:

“Bitcoin Cash will help both big blockers and small blockers focus on building the technology to realize their own visions, and save time on fighting with each other. Bitmain will discuss with customers to measure their demand, and decide whether providing a BCC mining option is worth it or not.”

Coinbase, which said it would not credit user balances with the forked coin, may soften its stance on trading in the future. CEO Brian Armstong tweeted “a few thoughts” on the matter, saying Coinbase isn’t opposed to adding new assets to its platform, but doesn’t “want to rush anything out”.

So That’s the First Day Anyway. Over to You, Market

So far then, the great Bitcoin divorce has been peaceful — more Czechoslovakia than Yugoslavia. The sniping continues on social media, but holy wars are part and parcel of the technology industry.

Most likely, they’re happy to not be on each other’s chain anymore.

The main controversy so far is over what to call the new currency. Chinese companies favor BCC, while ranking sites have gone with “BCH”. Some have pointed out the unsavory phonetic pronunciation of the latter — as reasons both for and against adopting it.

Meanwhile, there’s another movement to call the unit “Bcash”, to remove any association with Bitcoin. But like the blockchain and price, it’s something the market will eventually decide.

Will Bitcoin Cash be viable long-term? Tell us why or why not.

Images via CNBC, LATimes, Twitter, Facebook

Bitsonline Email Newsletter