The Bitcoin Cash (BCH) hard fork has left the crypto community divided, as two factions—Bitcoin ABC and Bitcoin SV—battled for dominance. Now that the dust has settled, it’s time to examine the consequences of this split, how exchanges responded, and what the future holds for both sides.
The Hard Fork: How Bitcoin Cash Split in Two
On November 15, 2018, the Bitcoin Cash blockchain underwent a hard fork, splitting into two competing chains:
- Bitcoin ABC (Adjustable Blocksize Cap): Backed by Roger Ver and Bitmain co-founder Jihan Wu, this faction aimed to maintain the existing BCH structure while gradually increasing block size and reducing transaction costs.
- Bitcoin SV (Satoshi’s Vision): Led by Craig Wright, who controversially claims to be Satoshi Nakamoto, this faction sought to restore “the original Satoshi protocol,” rewriting network scripts and increasing block size from 32MB to 128MB for greater scalability.
The split led to an intense hash war, as both sides tried to generate more blocks and assert their dominance. Mining power was diverted from Bitcoin (BTC) to Bitcoin Cash, causing market instability and possibly contributing to BTC’s price slump during this period.
Bitcoin ABC’s Victory and Exchange Recognition
After a fierce battle, Bitcoin ABC emerged as the dominant chain, securing:
- More proof-of-work (PoW) accumulation than Bitcoin SV.
- Major exchange support, with Coinbase, Kraken, Bitstamp, and Bittrex assigning the original “BCH” tickerto Bitcoin ABC.
- CoinMarketCap merging BCH and BCHABC listings, effectively solidifying ABC as the primary Bitcoin Cash chain.
- Hardware wallet Ledger resuming BCH services under BCH ABC only.
Meanwhile, Bitcoin SV faced technical setbacks, including a reported blockchain reorganization, raising concerns about its decentralization. Emin Gün Sirer, an expert in blockchain consensus mechanisms, criticized the network, stating:
“You can only invalidate your own block and create a new tail if you’re the majority miner. BCHSV is a centralized coin.”
Bitcoin SV Fights On: A New Identity
Despite losing the BCH war, Bitcoin SV has managed to carve out its own niche:
- Binance listed both BCHABC and BCHSV, keeping SV as an independent token.
- Kraken, despite initially rejecting SV, later listed it under the “BSV” ticker. However, the exchange warned traders about potential risks and miner coercion.
- Billionaire Calvin Ayre, a major BSV backer, announced that Bitcoin SV would separate entirely from BCH, claiming that it was the “original Bitcoin,” while BTC was merely “SegWit BTC.”
Market Impact and the Future of BCH & BSV
- BCH prices have struggled post-hard fork, with Bitcoin Cash trading at around $197.
- BSV remains in circulation, trading at a lower value but maintaining a presence on major exchanges.
- The crypto market as a whole faced a downturn, potentially due to the instability caused by the hash war.
While Bitcoin ABC remains the official Bitcoin Cash chain, Bitcoin SV continues to push its claim as the true Bitcoin, setting the stage for future conflicts in the ever-divisive world of cryptocurrency.
