All eyes are on the Bitcoin Cash dramatics.
Which chain will win out is what we all want to know. The answer appears to be Bitcoin Cash ABC, even though the fork doesn’t happen until 15 November.
We come to that conclusion from the prices of the trading tokens on Poloniex, the only exchange currently allowing trading in BCHABC and BCHSV. ABC is trading at six times ($475) the price of SV ($78).
Apparently there are worries by some at nChain that SV will be fail to get sufficient support and will end up being the shorter chain with less hash power. Those price quotes are against the USDC stablecoin not USD. Poloniex has dropped trading fees for USDC.
Those who want to trade the pre-fork BCH token have to deposit BCH and then split it into equal amounts of the two. To withdraw, traders will have to convert back to BCH. The pre-fork tokens cannot be moved off the exchange until after the fork.
With no replay protection, where transactions are sent to both chains simultaneously, traders will need to be very careful.
Craig Wright’s BCHSV drops to $78
Craig Wright (pictured above), whose nChain is the developer of the SV fork, has threatened to “blacklist” addresses that conduct transactions on the ABC chain.
Bitcoin Cash is down 4.7% today at $543. The forked ABC variant was trading at a premium to the BCH price but is no longer doing so, suggesting that traders are bearish about the forks. BCHSV fell to as low as $54 yesterday and is up 35% today, but still losing out massively to BCHABC.
nChain’s SV will introduce 128MB blocks. The ABC fork keeps block size at 32MB but makes a number of technical changes to pave the way for future scaling upgrades.
The BCH roadmap sets out a six-monthly cycle for software upgrades.
Wright claims to be the creator of bitcoin last year but his claims were greeted with derision by the global crypto community. The Australian set up nChain as a research outfit and is based in London.
Coinbase effect fizzles out
Whatever happened to the Coinbase effect. It didn’t last long, if the price of BAT is anything to go by, dropping 20% since its listing and is today 7% down at $0.27
Although the crypto market lost about $6 billion yesterday, the picture is a bit better today, with bitcoin 0.5% higher at $6,424, according to coinmarketcap, and Ethereum clawing back some of the recent losses to trade at $212.