Over 1 Million Bitcoin Cash Sent To Crypto Exchanges In The Last 7 Days Ahead Of The Hard Fork
The tension within the Bitcoin Cash community is growing literally by the minute because the upcoming hard fork may finally split the blockchain into two separate chains. BCH price has already reacted with a sharp drop. What will cryptocurrency exchanges say to this?
Users are in a hurry to “dump” Bitcoin Cash
Starting in mid-October, Bitcoin Cash has flooded to cryptocurrency exchanges. This trend has increased dramatically ahead of the hard work, which is scheduled for November 15. Over the past 7 days, the flow of Bitcoin Cash to trading platforms has doubled its three-month volume: over 1 million BCH worth $257 million has been moved to crypto exchanges.
Philip Gradwell, the Chainalysis chief economist, is convinced that users are thus trying to avoid the consequences of a possible increase in BCH volatility. This trend has already hit the BCH price significantly. The economist noted:
BCH users are left in limbo as a hard fork could lead to two separate blockchains. That is why analysts regard the active movement of Bitcoin Cash to exchanges as a desire to sell coins in a hurry.
Which side are cryptocurrency exchanges on?
The upcoming BCH hard fork has already made quite a splash in the crypto community. Two rival camps of protocol developers – Bitcoin Cash Node (BCHN) and Bitcoin ABC – have been vying with each other since 2018. Now the stumbling block was the question of introducing a new mining algorithm.
The Bitcoin ABC team is in favor of allocating 8% of block rewards to developers. The proposal to give a portion of the profits to the Bitcoin Cash development fund provoked a wave of criticism within the cryptocurrency community. Some miners assess this decision as an attempt to introduce a “network tax”, which is completely at odds with the idea of decentralizing cryptocurrency.
As a result, most miners “migrated” to the BCHN side: according to the data, about 80% of miners signal support for this protocol. The “tense” community atmosphere could lead to a further rift and two separate chains immediately following the November 15 protocol update.
Cryptocurrency exchanges have already reacted to the upcoming hard fork. Most of the marketplaces announced their readiness to support the protocol with the highest hash rate. Some crypto exchanges are still neutral towards both BCHN and BCHA. Ultimately, the blockchain will win in this fight, for which the miners will become the mountain. The losing party’s token will likely lose its value as an asset.