The long-anticipated hard fork of Bitcoin Cash (BCH) has officially taken place, resulting in a chain split that has divided the network into two competing versions: Bitcoin Cash ABC (BCHA) and Bitcoin Cash Node (BCHN). With the sixth common block mined after the 12:00 UTC deadline on November 15, 2020, the split was confirmed by the Bitcoin ABC team, marking a pivotal moment in the cryptocurrency’s evolution.
"During the #BitcoinCash network upgrade, which is now complete, a chain split occurred resulting in two chains: BCHA and BCHN. BCHA is focused on building sound global money by rewarding the technical talent that makes it happen."
— Bitcoin ABC (@Bitcoin_ABC)
This contentious hard fork stems from a fundamental disagreement over governance and funding models within the BCH ecosystem. While both factions aim to advance Bitcoin Cash, their visions for its future have led to a deep ideological divide.
The Root of the Conflict: Infrastructure Funding Plan
At the heart of the split lies the Infrastructure Funding Plan (IFP) proposed by Bitcoin ABC. This plan introduces an 8% "miner tax," redirecting a portion of block rewards to developers and contributors working on the BCH ABC implementation. Proponents argue this ensures sustainable development and incentivizes innovation.
However, opponents—led by the BCHN faction—view this as a dangerous precedent. They argue that siphoning off miner rewards undermines decentralization and concentrates power within a single development team. Critics fear this could lead to increased centralization, contradicting one of blockchain’s core principles.
The debate reflects broader tensions in the crypto space: how should open-source projects fund development without compromising decentralization? For many in the BCH community, the IFP crosses a line.
Hash Rate and Miner Support Favor BCHN
In blockchain networks that rely on proof-of-work mining, hash rate is a key indicator of network strength and miner confidence. In the lead-up to the fork, data showed overwhelming support for BCHN.
According to Coin Dance’s real-time tracking, BCHN captured 83.8% of the total hash power just before the split. This dominant miner backing suggests that the majority of miners rejected the 8% developer fee and instead favored a more decentralized development model.
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This level of support significantly increases the likelihood that BCHN will emerge as the dominant chain, both technically and economically. Historically, chains with stronger hash rate tend to maintain better security, attract more users, and retain higher market value.
Exchange and Wallet Support Aligns with BCHN
Market infrastructure plays a crucial role in determining which chain survives after a hard fork. Exchanges and wallet providers have largely thrown their weight behind BCHN, further cementing its position as the likely continuation of Bitcoin Cash.
Major platforms including Coinbase, Binance, and Kraken announced prior support for BCHN, citing community consensus and mining dominance as deciding factors. These exchanges paused BCH deposits and withdrawals temporarily to assess network stability post-fork—a standard precaution during such events.
Their decisions carry significant weight. When top-tier exchanges list a particular chain as “Bitcoin Cash,” it often becomes the de facto standard for traders, investors, and everyday users.
Pre-Fork Market Behavior: Selling Pressure Intensifies
Unlike previous hard forks—where anticipation typically drives price surges—Bitcoin Cash saw unusual bearish sentiment ahead of the event.
Chainalysis data revealed a spike in exchange inflows, with over 18,900 BCH sent to exchanges in the seven days leading up to the fork—the highest volume in 71 days. Additionally, traders moved more than 2.2 million BCH to exchanges, likely preparing to sell or hedge against volatility.
This behavior signals widespread uncertainty. Instead of expecting a price pump, many investors appeared to be bracing for turbulence or even abandonment of one of the chains.
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Even more telling was the performance of BCH/BTC trading pair, which hit its lowest level since the original Bitcoin Cash fork—trading near an all-time low of $0.0159 at the time of writing. The weak price action underscores diminished confidence amid internal conflict.
Why This Fork Matters Beyond BCH
This hard fork isn't just about technical upgrades—it's a referendum on governance in decentralized networks.
- Can a project implement mandatory funding mechanisms without alienating miners?
- Who gets to decide the future direction of a blockchain: developers, miners, or users?
- How much centralization is acceptable in pursuit of progress?
These questions resonate across the entire cryptocurrency landscape. Ethereum, Litecoin, and even Bitcoin itself have faced similar debates. The outcome of this split may serve as a case study for how communities handle ideological rifts when consensus breaks down.
Frequently Asked Questions (FAQ)
Q: What happened during the Bitcoin Cash hard fork?
A: On November 15, 2020, Bitcoin Cash underwent a contentious hard fork, splitting into two chains: Bitcoin Cash ABC (BCHA) and Bitcoin Cash Node (BCHN). The split resulted from disagreements over an 8% developer funding mechanism.
Q: Which chain is considered the main Bitcoin Cash chain now?
A: Based on hash rate dominance (83.8%), exchange support (Coinbase, Binance, Kraken), and community consensus, BCHN is widely recognized as the continuation of Bitcoin Cash.
Q: Did I receive free coins from the fork?
A: If you held BCH in a personal wallet before the fork, you likely control both BCHA and BCHN tokens. However, if your coins were on an exchange, distribution depends on that platform’s policy—some may not distribute both assets.
Q: Why did BCH not increase in price before the fork?
A: Unlike typical pre-fork rallies, uncertainty over centralization risks and opposition to the miner tax suppressed bullish momentum. Increased selling pressure reflected investor skepticism.
Q: Is BCHN different from BCHA technically?
A: Both chains share Bitcoin Cash’s core features like larger block sizes. The primary difference lies in governance: BCHA includes the 8% developer fund; BCHN does not.
Q: What does this mean for Bitcoin Cash’s future?
A: The success of BCHN suggests strong community preference for decentralized development. Moving forward, stability will depend on maintaining miner support and avoiding further internal conflicts.
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Final Thoughts
The Bitcoin Cash hard fork of 2020 was less about technology and more about philosophy. It highlighted the delicate balance between funding innovation and preserving decentralization.
With BCHN emerging as the dominant chain, supported by miners, exchanges, and users alike, the path forward appears clearer—but not without challenges. Rebuilding trust, stabilizing price action, and fostering inclusive development will be critical in the months ahead.
For observers and participants alike, this event serves as a powerful reminder: in blockchain, code is law—but consensus is everything.
Core Keywords: Bitcoin Cash, hard fork, BCHN, BCHA, Infrastructure Funding Plan, miner tax, hash rate, decentralized development