The Bitcoin Cash community is split amidst a decision for a network upgrade and mining fee distribution. A consensus has not yet reached for the upcoming fork, which could result in a split of the Bitcoin Cash chain into two chains.
When is the fork expected?
The Bitcoin Cash blockchain is expected to split into BCHA and BCHN on November 15, 2020.
What is the reason for the split?
The main reason for the split is the decision with sharing the 8% mining fee. An Infrastructure Funding Proposal was added to Bitcoin Cash ABC’s codebase. As per this proposal, led by Amaury Sechet, BCHA developers are asking for 8% of the mining fee to be shared by the coders for the development of BCH.
However, many community members, led by Roger Ver, are against this plan and do not want 8% of the mining fee to go to the developers. This may result in a chain split and two new BCH blockchains coming into existence. Roger Ver tweeted, “Diverting part of the #BitcoinCash block reward to pay a single development team is a Soviet style central planner’s dream come true”
Which chain will thrive? BCHA or BCHN?
With regards to the dominant chain, so far over 70% of the Bitcoin Cash blocks are being mined with BCHN. Over 700 of the last 1,000 blocks were mined using BCHN software. However, the dominant chain will be determined purely by the price at which the tokens of these two coins trade after the fork.
Which chain will keep the name Bitcoin Cash?
Historically, the chain which will be traded at a higher price will get to keep the heritage name Bitcoin Cash and a new name will be assigned to the chain which trades at a lower price.
Do you get free coins?
Yes. You will be getting free coins in a 1:1 ratio. If you hold 10 BCH, your BCH holding post-fork would be 10 BCHA and 10 BCHN. Whichever coin trades at a higher price will continue to keep the name BCH and the other chain will get a new name. This decision might vary from exchange to exchange.
What should I do to get free coins?
You should check with your exchange or wallet if they are supporting this fork. If they are, you don’t have to do anything, and the new coins will be credited to you in your wallet. If not, you need to transfer your BCH from your current exchange/wallet to an exchange/wallet which supports this fork.
What will be the price of the new coin?
Historically, the less dominant chain begins trading at 10% of the price of the more dominant chain.
As of November 2, BCHN and BCHA are being traded on Poloniex BCH futures market for an upcoming fork at $210 and $20, respectively.
BCH price prediction
Fundamentally, BCH is definitely a good asset to buy. Whenever a coin approaches its hard fork date, we see a rapid increase in the price of that coin since people always love free coins.
Let us review the chart of BCH to evaluate the possible targets for BCH.
BCH price has been consolidating in the support zone of $265-270. If this support holds, we can see a push towards $280 at the first resistance zone and towards $295 at the second resistance zone. Failure to hold the first support zone can pull BCH price back towards $240, which would be an excellent price to add to your longs before the fork.
For a smaller timeframe of 1 hour candles, the possible setup for BCH long would be to long from $260-258 with targets of $263, $266.80, $268.60, $270.04, $273.50, and $276.08, with a stop loss below the candle close of $255.
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