Both Binance and Coinbase announced that they’ll support the upcoming Bitcoin Cash (BCH) fork. Consequently, th coin’s value continued to rise. Since last Monday, it climbed from $424 to $546, peaking at $584. Similarly, the trade volume increased dramatically, from around $300,000 to $1.4 million. Currently, Bitcoin Cash (BCH) is the fourth most valuable coin by market cap.
Bitcoin Cash (BCH) launched in the summer of 2017 as a hard fork of Bitcoin (BTC). Therefore, it closely resembled the Bitcoin (BTC) protocol but increased the block size to speed things up and become more scalable. Built into Bitcoin Cash (BCH) is an additional fork every 6 months in order to facilitate any upgrades to the system.
Typically there is a consensus on these upgrades, but not this time around
Instead, developers proposed two opposing forks. The first comes from the leading Bitcoin Cash (BCH) software Bitcoin ABC. Developer nChain disagreed with some components of the ABC roadmap and then proposed a protocol upgrade of their own.
For some time, uncertainty clouded the future of Bitcoin Cash (BCH) for its holders, but the support from Binance and Coinbase helped immensely
Binance officially announced it will be handling the upcoming fork on Friday. Its goal is to secure holdings in its exchange wallets, and to update their system based on the fork results. Coinbase followed suit on Saturday with a similar message.
Both exchanges plan to close operations for the coin shortly before the scheduled fork. They’ll assess the results and make sure the Bitcoin Cash (BCH) protocol meets their security guidelines. They say they will update customers at each stage of their progress, and they’ll make a final announcement once Bitcoin Cash (BCH) is back online.
While some uncertainty remain on which fork will pass, it doesn’t seem to matter as long as the exchanges support it
This is clearly so, considering the massive spike in trade volume. Whether this will mean continued recovery for Bitcoin Cash (BCH) is still to soon to determine.
It is not uncommon for the value the soar leading up to a hard fork. It’s fairly standard that asset holders will also be rewarded in the resultant coin. When Bitcoin Cash (BCH) first hard forked from Bitcoin (BTC), traders received a 1:1 ratio in their wallets. The good news is, since Binance and Coinbase will support the BCH, any new currency will automatically appear in the exchange wallet for holdings there.
Want the latest crypto news? Join our Telegram Channel