Exchanges Register Massive Bitcoin Cash (BCH) Inflow Before Contentious Hardfork
The contentious Bitcoin Cash (BCH) hard fork is all set to happen this coming Sunday, November 15. The hard fork in the BCH blockchain will split the coin into two – Bitcoin ABC and Bitcoin Cash Node (BCHN).
As per the latest market reports, exchanges have registered a massive inflow of Bitcoin Cash (BCH) with over one million coins coming over the last week. Chief economist at Chainlysis Philip Gradwell tweeted about the same earlier today. He further goes to suggest that the deposits are largely driven by the upcoming hardfork in the coming days.
Over 1 million Bitcoin Cash has been sent to exchanges in the last seven days ahead of the hard fork on 15 November, driving the BCH price relative to BTC even lower.
Track daily BCH exchange inflows here: https://t.co/kxrZt6Jvai pic.twitter.com/SobmbY1eRK
— Philip Gradwell (@philip_gradwell) November 11, 2020
The recent influx of BCH at the crypto trading platforms has sent its price even lower against Bitcoin (BTC). Let’s take a look at what the Bitcoin Cash hard fork means for the crypto community and the BCH investors.
As said, the Bitcoin Cash hard fork will split the BCH blockchain into two sections with different forked versions of the BCH crypto. These two opposite camps differ in having a separate developer fund from the miner rewards.
The Bitcoin ABC camp is in favor of the developer fund while the Bitcoin Cash Node (BCHN) is opposing it. The Bitcoin ABC community proposes a novel mining algorithm wherein 8% of the block rewards are allocated to the developer team. However, the core Bitcoin Cash community aka the supporters of the BCHN version think that such a proposal is against the decentralized nature of the cryptocurrency.
Popular Bitcoin Cash supporter Roger Ver has also criticized Bitcoin ABC for its proposal calling it a “Soviet Style Central Planner’s Dream”.
Diverting part of the #BitcoinCash block reward to pay a single development team is a Soviet style central planner’s dream come true.
Please stop. pic.twitter.com/5H6EKDnDjc— Roger Ver (@rogerkver) August 31, 2020
In a joint statement on Bitcoin ABC, Simple Ledger Protocol holds similar views to Roger Ver. It adds:
“This action by Bitcoin ABC was carried out without prior discussion with the wider BCH ecosystem, and is a sudden deviation from every other Bitcoin Cash node implementation. Therefore by forking economic changes on its own volition, ABC is also no longer a project that aligns with Bitcoin Cash’s values and principles”.
Reportedly, nearly 82% of miners have opposed the proposal of the Bitcoin ABC team. However, a number of exchanges have already said that they will support the forked coins. This includes popular exchanges like Gate.io, OKCoin, OKEx, Crypto.com, etc.
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