The incumbent Bitcoin Cash fixed fork saw the price increase of the currency over 40 percent in the last week. The trend should continue until the junction to be held on November 15th.
Reason for the peak price
A rigid fork creates a second chain and a token. So, the price increase is not surprising given that every time a fork is going to happen to a major cryptocurrency, there is a greater demand for money. It is usually because the original chain investors are rewarded with the newly created crypto based on the 1: 1 ratio.
Greater impetus from better encryption exchanges
Price action also received a boost from the ads of Binance and Coinbase. The two exchanges promised to support the bifurcated token.
Meanwhile, one of the leading providers of cryptographic portfolios, Ledger promised to support the dominant chain after the fork. It means the fork with the most hashing power and even the highest levels of stability.
Now the anticipation of the imminent fork has seen a sevenfold increase in the volume of Bitcoin money. The data from coinmarketcap.com show that BCH in the last week has gone from less than $ 200 million to $ 1.4 billion.
The incoming fork is somewhat different from the usual biennial updates. This is because there is a competing proposal that is not compatible with the original BCC roadmap of bitcoincash.org.
When it comes to cryptocurrency blockchain, decisions are made by miners based on the power of extraction they control. So, if a miner can get majority support for a proposal, it is the direction in which the cryptocurrency blockchain will move.
Bitcoin ABC, the most used Bitcoin cash client, suggested an unplanned change to BCC. He says the update will make the network more scalable and usable. Furthermore, it will open the door for non-cash transactions to take place on the Bitcoin cash block. However, Bitcoin ABC wants to keep the block size to 32 MB.
Bitcoin ABC has the support of Bitmain, one of the leading mining crypts based in China. The mining giant holds about 18% of the Bitcoin money extraction power.
The competition proposal is nChain. The company wants to avoid canonical transactions and increase the block size to 128 MB. nChain has the support of Coingeek, a US-based company with 21 percent of BCC's mining power.
These two fields with opposite ideas are trying to get more support from the rest of the other major miners and cash-bitin pools.
Basil has three years of freelance experience writing about disruptive technologies. It focuses on latest news and pieces of education; helping to spread the Gospel of Blockchain. He hopes to have his blockchain company one day; help the world through its innovative ledger technology.