Bitcoin Cash Next Hard Fork: Good or Bad?

Bitcoin Cash that came into being from a Bitcoin hard fork back in August of last year is about to get its own hard fork as the team look to push Bitcoin Cash to become a more viable option than Bitcoin as an alternative to fiat money and more.
Bob Mason
Bitcoin Cash Next Hard Fork: Good or Bad?

The hard fork talk saw Bitcoin Cash rally to an April high $1,578.3 from early April’s $600.1 low, with the 15th May hard fork getting plenty of airtime this month, coinciding with the passing of the U.S tax deadline in mid-April and a relatively quiet period from a regulatory news perspective.

When compared with the direction of Bitcoin through the month, it’s very evident that the announced hard fork contributed to the gains as Bitcoin up just 50% since April’s $6,500.2 low, paling in comparison to Bitcoin Cash’s 163% bounce.

There have been plenty of debate over whether Bitcoin can continue to hold on to the top spot or whether Bitcoin Cash can force its way through, transaction speeds and fees ultimately the key area of focus when it comes to a cryptocurrency looking to go mainstream to compete with fiat money in the real world.

What’s Gonna Happen?

The Bitcoin Cash hard fork, which has been labeled Bitcoin ABC, will increase Bitcoin Cash’s block size from 8MB to a whopping 32MB. In addition to the significant increase in the block size, the fork will also remove the SegWit protocol.

Unlike the Bitcoin hard forks that have resulted in Bitcoin Cash, Bitcoin Gold, and even Bitcoin Diamond, the planned Bitcoin Cash fork has come from a collaborative effort to improve on Bitcoin Cash’s offerings resulting from the August 2017 hard fork.

As far as the ABC Team and the Bitcoin Cash community is concerned, it’s all about delivering upgrades that support the network to process more transactions, with other functionalities also thrown in to make it even more attractive than market leader Bitcoin.

The reactivation of smart contracts that had been deactivated on Bitcoin’s network, will be an added feature, which is similar to the ERC-20 token feature used in ICOs on the Ethereum network.

Transaction times are expected to improve to under 3-minutes per transaction, which is significantly faster than Bitcoin’s 10 minutes.

The inclusion of smart contracts allow the Bitcoin Cash community to store, archive and track the record of assets that have been digitalized, including but not limited to titles to property, vehicles, stocks and just about anything else that has a deed or title associated with ownership.

Other upgrades that are anticipated in next month’s hard fork include:

  • Time stamping data, the upgrade allowing users to digitize and add documents to the blockchain to permanently record their existence within the Bitcoin Cash ledger.
  • Upper turn size increase from 40 to 220 bytes, need to facilitate the archiving of documents on the blockchain, which are not verified by miners and result in the creation of colored coins.

The hard fork is certainly an ambitious one, with the ABC Team looking to deliver the crypto community with a one-stop shop blockchain that, is not only a more viable alternative to Bitcoin as an alternative to fiat money, but also competes against the likes of Litecoin with transaction times and Ethereum with its smart contract capabilities, the need for the significantly larger blockchain being to not only improve transaction times, but to also to cater for the additional features that will be released in the hard fork upgrade.

Suggested Articles

If You Own Bitcoin Cash…

The anticipated enhancements to Bitcoin Cash will certainly have contributed to the April rally, but as had been the case with the Bitcoin hard forks of 2017 and Litecoin’s hard fork this year, the news wires continuing to suggest that a new coin would not result and be given to those holding Bitcoin Cash coins at the time of the hard fork.

Successful adoption of the new upgrades will leave existing coin holders with an improved, but not new blockchain.

If the movements across the other cryptocurrencies are anything to go by, underlying capabilities of a particular blockchain tech have yet to become the primary focus of investors. Speculative investor disappointment could see Bitcoin cash take a tumble following the hard fork, in the event that new coins are not created and the upgrades are adopted by the Bitcoin Cash community.

A hold at current levels post fork, could ultimately bring Bitcoin Cash to the front of the pack, though much will depend upon how quickly users take on the offerings and users begin to store and archive titles and document, while also increasing the use of Bitcoin Cash as an alternative currency in the real world.

One thing is for certain and that is the fact that the Bitcoin Cash community is not going to sit back and let Bitcoin Cash gather dust. One can anticipate continued upgrades along the way as the Bitcoin Cash community search for a competitive edge that would leave the likes of Bitcoin and Ethereum in its wake.

Is the real world ready to store anything and everything in digital format on a platform that has only really drawn the attention of the non-crypto world over the past 12-months?

Time will tell, but it is the way of the future and, with banks and institutions have already adopted the technology for various functions, including international wire transfers in place of the likes of SWIFT, it should only be a matter of time. If it’s good enough for money transfers, it’s ultimately going to be good enough for titles and anything else important to be stored or archived on a decentralized platform that cannot be manipulated. The Bitcoin community is moving forward, trying to improve and overcome Bitcoin. It’s a coin competition and improvements will be coming constantly.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.