Authored by MBAex Senior Market Analyst Ipek Ozkardeskaya, compiled by INSIDE with permission.
Bitcoin Cash (BCH) has surged 45% since November 1, driven by announcements from Coinbase and Binance supporting its upcoming fork on November 15.
Coinbase assured users: "Even in the worst-case scenario of multiple chains post-fork, Coinbase will ensure users retain assets on all forked chains."
Why This Matters
During a hard fork, holders of the original token are entitled to both old and new coins. However, exchanges must actively support both chains for users to receive both assets.
While holders can manage tokens independently via private wallets, advanced crypto exchanges play a critical role by supporting forks and eliminating uncertainty.
Risks and Volatility
November remains risky for BCH. Ongoing uncertainty and price swings could pressure BCH/USDT, which recently breached the 600 mark. A downward correction to the 38.2% retracement level ($554) may serve as a pivot between bullish momentum and short-term bearish consolidation.
Background: BCH’s Challenges
Bitcoin Cash faced selling pressure over recent months due to broader blockchain industry downturns and its November hard fork. BCH undergoes biannual protocol updates to enhance speed, scalability, and security, ensuring competitiveness.
Technically, hard forks don’t always create new tokens. If most miners agree to migrate, the chain remains intact. Otherwise, two separate chains may emerge.
The November Fork’s Stakes
This fork threatens to split the BCH community. If consensus isn’t reached, a new token could emerge.
Will a New Token Be Created?
Tensions stem from a clash between two developer groups:
- Bitcoin ABC: Proposes adding OP_CHECKDATASIGVERIFY (DSV) to improve BCH scripts, canonical transaction ordering (CTOR), and minor technical fixes.
nChain: Advocates restoring Bitcoin’s original protocol via Bitcoin SV (Satoshi Vision), including:
- Reinstating legacy opcodes (OP_MUL, OP_LSHIFT, etc.).
- Removing the 201-opcode limit per script.
- Increasing block size from 32MB to 128MB.
nChain claims Bitcoin SV will propel "big blocks, big business, and big growth," positioning it as Bitcoin’s future. However, this may render Bitcoin ABC’s protocol incompatible, potentially creating two distinct chains and a new token.
Trader Preparedness
Traders should brace for high volatility and assess risks thoroughly before November 15.
FAQ Section
1. What happens to my BCH during the fork?
Holders will receive both old and new coins if the fork creates a new chain. Ensure your exchange supports both chains or use a private wallet.
2. Why is the November fork contentious?
Diverging visions between Bitcoin ABC and nChain—ranging from technical upgrades to fundamental protocol changes—risk splitting the community.
3. How could the fork impact BCH’s price?
Expect volatility. Past forks saw price swings due to uncertainty and speculative trading.