The Bitcoin Cash Hard Fork Explained
The cryptocurrency community faced significant turbulence in mid-November due to the Bitcoin Cash (BCH) hard fork. While blockchain forks are common—often likened to "system upgrades" in centralized platforms—this event escalated into a high-stakes battle between two powerful factions:
- BCH ABC (led by Bitmain CEO Jihan Wu)
- BCH SV (led by Craig Wright, aka "Fake Satoshi")
Unlike previous forks where divergent chains coexisted, this clash became a zero-sum game: the losing chain would see its transactions invalidated and mining investments erased.
Key Differences Between Hard and Soft Forks
- Hard Fork: Non-backward-compatible changes, creating a permanent divergence (e.g., Ethereum/ETC split).
- Soft Fork: Backward-compatible updates (e.g., Bitcoin SegWit).
The Showdown: Jihan Wu vs. Craig Wright
Both camps brought formidable resources to the fight:
- Wu's Advantages: Backing from Bitmain (world's largest crypto miner manufacturer).
- Wright's Resources: Control over Coingeek, BCH's top mining pool.
The war of words intensified:
- Wu accused Wright of fraudulently claiming to be Satoshi Nakamoto.
- Wright retaliated by threatening to "bankrupt Bitmain" and prolong the conflict.
Market Fallout: A Bloodbath for Crypto Prices
The fork triggered a cascading market collapse:
Bitcoin's Price Plunge
- Pre-Fork: Stable at ~$6,300 for a month.
- November 15: Dropped 13% to $5,460 (13-month low).
November 20: Fell another 15% in 24 hours, breaching $4,700 amid:
- SEC penalties against ICO founders.
- U.S. tech stock declines.
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The Turning Point: Wright's Retreat
On November 21, Wright redeployed his hashpower from BCH to BTC, conceding victory to BCH ABC. Bitcoin prices stabilized temporarily but remain fragile:
- Short-term rebound to $4,800.
- Resistance at $5,000; $6,000 unlikely soon.
Hidden Winners? Analyzing the Aftermath
Potential Beneficiaries
- Short Sellers: Wright may have preemptively shorted BTC, profiting from the downturn.
- BCH ABC Supporters: Wu's faction gains from post-victory price appreciation.
- Miners: Hashpower shifts could redistribute mining rewards.
As one analyst noted: "Did Wu and Wright really lose? Or was this a coordinated play? Only the韭菜 (newbies) bled."
FAQ: Bitcoin Cash Fork Aftermath
Q: Why did this fork cause more damage than previous ones?
A: Unlike past forks, this was a winner-takes-all hash war—losing chains became worthless.
Q: Can Bitcoin recover to $6,000 soon?
A: Unlikely. Market sentiment remains bearish with strong resistance at $5,000.
Q: Who truly "won" the fork war?
A: Both leaders may have profited indirectly (via shorts or hashpower), while retail investors bore the brunt.
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Disclaimer: This content is for informational purposes only. Cryptocurrency investments carry high risk.
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