BCHN Outperforms Amid the Upcoming Bitcoin Cash Fork
The price of Bitcoin Cash (BCH) rises slowly since the news said that BCH will fork again this year, especially in the second half of October.
Huobi and OKEx now show support for BCH fork. Judging from the announcement of the two exchanges, the ability to inherit the name of BCH will depend on the two opponents BCHA or BCHN who has a higher price.
The contradiction of BCH fork is whether to start IFP. If the IFP is successfully launched, the BCH mined by the miners will be pay an 8% tax for the development team.
Now the community is divided into two groups, BCHN and BCHA. BCHA supporters think that BCH team’s project development and maintenance needs funds. Starting IFP will solve the problem of funds, which is more conducive to the development of the project in the long run.
The BCHN supporters believe that the extra 8% tax seriously violates the vision of decentralization, and BCH will deviate from the original path of bitcoin and not in line with the spirit of blockchain.
Before that, Jihan Wu had wanted to promote IFP to give BCH development team more financial support, but for various reasons, it ended up dead.
Analysts pointed out that the main reason why BCH community opposes IFP is that the most important supporters of BCH are miners, and IFP will reduce the income of miners. For large investors, they may be more inclined to support IFP, so that the development team has more funds for project development.
Although BCH does not have the funds come from the chain’s own development, the BCH development team has always been supported by donation funds.
At present, Coinex has supported the two-way conversion of BCH, BCHA and BCHN. In its futures market, the price of BCHN is 13 times that of BCHA. Judging from the current futures price, BCHN has a relatively large advantage over BCHA and is likely to inherit the name of BCH.
From the perspective of blocking, BCHN also has great advantages. 74.7% of BCH blocks are excavated by BCHN camp, and BCHN camp’s computing power has exceeded 50% of the whole network, while BCHA’s computing power only accounts for 0.8%.
Picture from Coin.dance
The main reason is that the BCHA route will make miners pay an extra 8% tax, and the miners will naturally not support it. Though the fork has not yet started, there seems to be no much suspense about the outcome.
At present, some investors want to get more profit through airdrop than holding BCH. Even some users will hedge in the contract market after buying the spot, and obtain the risk-free fork token airdrop through the combination of spot and futures.
But now BCH fork has great uncertainty, there exists high risk in trading or investing in fork futures token. If a blockchain lacks the support of miners, it may not survive, and the relevant token price will dump to zero.
In fact, the BCH fork also shows that BCH belongs to the community. Even the major development teams can’t do anything against the community consensus because of their interests, otherwise, they will be abandoned by the community.