The Bitcoin Cash network split has been done with a much expected volatile post-fork period on the anvil.
In the hour following the fork, Bitcoin Cash plummeted by 10%.
Bitcoin Cash split
We have been reporting how the Bitcoin Cash Hard fork has become the talk of the crypto town and now the hard fork to two separate chains BCHN and BCHABC has been executed with miner support split to 60% and 37% among the two competing sides. Just as is the case with the common voting process, here in this case the majority does not hamper the functioning of the minority chain. Instead, if the miners want to be continuously using it to transact, both the versions of the chain will continue to exist in tandem.
To get into a little detail, from block number 661,648 there are two blockchains of Bitcoin Cash namely BCHN and BCHABC. It has been seen that the block times on BCH have reached greater than the regular ten-minute production cycle even after the event. The hash rate dropped by 40% almost suddenly to the dominant chain. The time required for the miners to begin upgrading their network witnessed the occurrence in only four new blocks on the primary chain within the first 1.5 hours after the fork.
Source: BitMex Fork Monitor
Volatility is the main issue
Meanwhile, BCHN enjoys full-fledged support from top exchanges like Coinbase and Kraken but since miners will fluctuate between both the chains, stability will remain a major issue. Major crypto exchange Binance also will support the majority chain but it will keep alive the option of claiming minority chain tokens on and after Nov 15th.
The market value of tokens will depend on speculation more than the fair value. Since there is a lack of liquidity in BCHABC as it does not have many options for listing on crypto exchanges, the prices will be volatile in the next few weeks to come.
Source: Trading View
The most significant on-chain indicators include miner support through hash rate and transaction volume on the competing chains. But there is a good chance of large scale volatility to be prevalent at a mainstream level. The market has already witnessed volatility as BCH reduced by 10% within 60 minutes of the fork. As can be seen, it is hovering near $242.
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