What is a Hard Fork?
To understand the Bitcoin cash hard fork split, we first need to understand what the hard fork is basically. A hard fork is a term that is associated with Blockchain Technology. Hard Fork is a major action made in the Blockchain . At this point in time, Blockchain technology gets split into two separate Blockchain.
Both the Blockchain become new entities, in which one platform might follows former rules and regulations of the Blockchain platform while the other one makes new rules. Based on support from the wider community of miners and users, any of the two Blockchain platforms may survive or not.
What is BCH?
Bitcoin Cash (BCH) is a digital cryptocurrency that came into being in 2018 after hardfork in Bitcoin. Bitcoin Cash had split into two currencies earlier– BCHABC is one of those two split cryptocurrencies but majorly recognized as BCH after previous split .
Hard Fork of the BCH Platform
Though BCHABC or BCH is a product of the hard fork, it is now splitted in two chains. BCH splitted into Bitcoin Cash Node (BCHN) and Bitcoin Cash ABC(BCHA). The Blockchain miners has vowed to follow and recognize the Bitcoin Cash Node Chain over the Bitcoin Cash ABC (BHC ABC). Many Miners has decided not to recognize the BCHABC, at all.
Why Had It Happened?
The main reason behind the occurrence of this split is the “minor tax”. This tax was proposed by the Lead Development Team of BCHABC, to fund further development. However, Miners who now belong to the BHCN team, rejected to pay tax as it will result in less income. This is why the BCH (Bitcoin Cash HardFork) had to split into two different entities. Due to differences between the opinions, the split of the BCH had taken place. This does not impact the Blockchain users much.
Why BCH Failed To Replace BTC Over Years?
There are many reasons why BCH had failed to replace the BTC over the years and has gradually weakened over time. Following are some of the top reasons:
- Bitcoin’s Continuous rise
First and foremost, BCH was never given a chance to replace BTC, In its first days BCH saw price manipulation, dumping and everything. Only a handful of users stay attached to it, While Bitcoin has seen only rise in users and adoption.
- Destitute Conditions and Insufficient Security of the Miners
Experts have opined that it was witnessed that the BCH network had always been low. Recently, the number of transactions has also reduced from 90,000 to 56,000. These astonishing low numbers have witnessed a further greater decline in the usage of BCH and shifting of miners.
- Impact on the Price of the Bitcoin Cash
Though Bitcoin Cash prices were not impacted by poor functionality, it got hit when people seeing no development and adoption sold their BCH abruptly. This led to the further decline of the BCH as the confidence of investors in BCH vanished. This impacted the price of the BCH greatly. So, demand for the BCH declined dramatically.