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Bitcoin Cash could split again tomorrow; here’s how you need to prepare

Bitcoin Cash is largely expected to go undergo another hard fork two years after the community split to Bitcoin Cash and Bitcoin SV. Once again, the network will split into two chains, the Bitcoin Cash Node (BCHN) chain and Bitcoin Cash ABC (BCHA) chain. The hard fork is scheduled to occur on November 15th 12:00 UTC.

Following the hard fork, both the Bitcoin ABC and the Bitcoin Cash Node will be deploying a new difficulty adjustment algorithm. 

Key notes for investors

"In preparation for this event, deposits and withdrawals of BCH on Bitfinex will be suspended at 10:00 AM UTC on November 15, 2020," Bitfinex announced in a statement. "For each account, Bitfinex will then complete a snapshot of BCH balances at 12:00 UTC (the Snapshot Event). It is possible that this BCH network protocol upgrade will result in a fork with separate blockchains recorded by a portion of the miners that previously mined BCH."

Similarly, Binance will also suspend BCH deposits and withdrawals at 10:00 AM UTC. Binance further noted that BCH spot trading and BCH cross and isolated margin trading will not be affected.

Earlier in the month, hardware wallet manufacturer Trezor announced that it will not be supporting Bitcoin Cash Node network immediately. "As is the case with any blockchain hard fork, the decision of which network will be supported is based on consensus by the community and is largely dependent on the hashing power contributed by miners to the particular network," the company said in its official blog. "Trezor will support whichever chain the community chooses, but it may take time for consensus to be reached."

KuCoin noted that the platform will support it if a new token is forked. "If the fork results in two competing chains, KuCoin will open BCHA and BCHN related services selectively," the exchange further added. "KuCoin will respect the opinions of the community, reach a consensus with the community and users, and ensure the smooth operation of the market to the greatest extent."

Finally, Kraken announced that it will take a snapshot of all BCH client balances on Kraken Futures at the time of the last common block right before the fork. "If the criteria for Kraken to support Bitcoin Cash ABC is met, the equal amount of Bitcoin Cash ABC (as determined by the snapshot) will be credited to client's Kraken spot account," Kraken explained.

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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