The Bitcoin Cash (BCH) community is on the verge of a significant milestone—a potential hard fork scheduled for November 15, 2020. This event could split the network into two distinct blockchains, driven by ongoing debates over development funding. Here's what you need to know.
Key Players in the Bitcoin Cash Hard Fork
Three primary implementations currently operate within the BCH ecosystem:
- Bitcoin ABC – The dominant node software with a large miner following, supporting advanced tech like Avalanche.
- BCHN – An emerging alternative gaining traction among businesses opposed to funding changes.
- Bitcoin Unlimited – A long-standing implementation favoring decentralized governance.
The Controversial Funding Proposal
The Bitcoin ABC team proposed the Infrastructure Funding Plan (IFP), requiring miners to allocate 8% of block rewards to developers. Their rationale:
- 90% of developer efforts focus on securing BCH’s codebase.
- Sustainable funding ensures continued innovation and competitiveness.
👉 Why this hard fork matters for crypto investors
Community Reactions and Divisions
- Opponents: Critics argue the IFP centralizes control and risks community splintering. Major exchanges and businesses are switching to BCHN nodes to reject the proposal.
- Supporters: Proponents highlight the need for reliable funding to maintain BCH’s growth, framing the fork as an opportunity for "free money."
Practical Implications for Holders and Traders
How to Secure Your BCH During the Fork
- Use a non-custodial wallet (e.g., ABC Wallet, Electron Cash) to retain control of your coins.
- Withdraw from exchanges 48 hours before the fork to ensure eligibility for new tokens.
- Monitor volatility – Price swings are likely post-fork; strategize entry/exit points for both chains.
Exchange Challenges: Which Chain Is "Real BCH"?
Exchanges face a dilemma:
- Bitcoin ABC will label its chain as BCH, leaving the rival chain to rebrand.
- A prolonged hash war could destabilize both networks if mining power splits evenly.
Historical Context and Market Impact
This marks BCH’s second major fork after Bitcoin SV in 2018. While past forks created value (e.g., free coins for BTC holders), this split risks diluting community cohesion. Investors like Tim Draper remain bullish, citing BCH’s trader adoption and technological strides.
FAQ: Bitcoin Cash Hard Fork Explained
1. Will I receive new coins after the fork?
Yes, holding BCH in a private wallet during the fork grants you tokens on both chains.
2. Which exchanges support the fork?
Major platforms like Binance and Coinbase typically announce support closer to the event. Verify their policies beforehand.
3. Could the fork harm BCH’s price?
Short-term volatility is likely, but long-term effects depend on community adoption and developer activity post-fork.
👉 Essential guide to navigating crypto forks
Note: Always conduct independent research and consult financial advisors before making investment decisions. Market conditions evolve rapidly.
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