Bitcoin Cash (BCH), the "big block" project that forked from Bitcoin in 2017, split into two distinct coins last week: Bitcoin Cash ABC (BCHABC) and Bitcoin Cash SV (BCHSV).
A week post-split, Bitcoin Cash ABC leads in proof-of-work accumulation and market value, trading higher than Bitcoin Cash SV. While many BCHABC proponents declare victory, BCHSV supporters remain persistent. Here’s a breakdown of key developments:
Endurance Attack: The New Hash War Strategy
Initially anticipated as a "hash war," the conflict evolved into an endurance attack. Bitcoin Cash ABC has defended its chain with excessive hash power, but at significant cost. Craig Wright (nChain) argues sustained mining costs will eventually weaken BCHABC, enabling 51% attacks.
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Key observations:
- BCHABC attracts disproportionate hash power despite lower profitability.
- Estimated millions spent by both camps to maintain chain security.
- BCHSV remains operational but faces fewer threats.
Controversial Checkpoint System Introduced
To counter reorg attacks, Bitcoin ABC developers implemented a 10-block checkpoint rule, finalizing transactions after 10 confirmations. Critics highlight risks:
- Potential chain splits if users don’t upgrade.
- Centralized governance concerns, as changes lacked coordination with projects like Bitcoin Unlimited.
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Calvin Ayre’s Role and Legal Threats
Gambling tycoon Calvin Ayre (Coingeek) escalated tensions by:
- Threatening lawsuits against BCHABC leaders (Jihan Wu, Roger Ver) for alleged market manipulation.
- Proposing replay protection as a peace condition—unlikely to be adopted by BCHABC.
Market Adoption and Price Trends
Both coins are establishing ecosystems:
- BCHABC: Adopted as "Bitcoin Cash" by most existing infrastructure.
- BCHSV: New tools (e.g., block explorer) and >32MB blocks (despite technical hiccups).
Price Impact:
- Combined BCHABC + BCHSV value dropped ~60% post-split ($600 → $240).
- BCHABC ranks 4th by market cap; BCHSV trails at 13th.
FAQ: Bitcoin Cash Split
Q1: Which chain is "winning" the split?
A: BCHABC leads in hash power and exchange value, but BCHSV remains active.
Q2: What’s an endurance attack?
A: A strategy to outlast opponents by sustaining high mining costs until defenses weaken.
Q3: Why is the checkpoint system controversial?
A: It risks chain splits and reflects centralized decision-making by Bitcoin ABC developers.
Q4: Will replay protection be implemented?
A: Unlikely, as it could fragment BCHABC further if not universally adopted.
Q5: How has the split affected Bitcoin Cash’s market position?
A: Combined value fell sharply, though BCHABC retains a top-five market cap.
Key Takeaways
- The split underscores governance challenges in decentralized ecosystems.
- Security costs remain unsustainable long-term for both chains.
- Market volatility persists amid unresolved tensions.
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Written by Aaron van Wirdum | Edited for clarity and SEO