The Bitcoin Cash network, originally created as a "big block" alternative to Bitcoin during its 2017 hard fork, underwent another major split just last week—this time fracturing into two distinct chains: Bitcoin Cash ABC (BCHABC) and Bitcoin Cash SV (BCHSV). A week on, the dust has begun to settle, but the battle lines remain sharply drawn. While BCHABC currently leads in hash power and market valuation, the conflict is far from over.
This article explores the key developments since the split, analyzing technical shifts, strategic maneuvers, and market reactions that are shaping the future of both chains.
The Hash Power Race: From War to Endurance
Initial fears of an all-out "hash war"—where miners would aggressively target one chain to destabilize it—did not materialize immediately. Instead, what emerged was a prolonged endurance attack, a term popularized by nChain’s Craig Steven Wright. Rather than launching sudden 51% attacks, the strategy now appears to be economic attrition: draining resources from the opposing side until it collapses under mining costs.
Despite early rumors of a reorganization (reorg) attack on the BCHSV chain, investigations revealed these claims to be false. In reality, it was BCHABC that faced the greater threat, prompting an influx of hash power far exceeding what its block rewards justify. Analysts estimate that both factions have already spent millions of dollars in mining subsidies to maintain dominance.
This unusual mining behavior suggests more than just technical defense—it reflects a battle for legitimacy. By maintaining superior hash rate, BCHABC strengthens its claim as the true successor to Bitcoin Cash. Yet technically, neither chain depends on leading in hash power to function. Both are now fully independent blockchains, each capable of operating regardless of the other's performance.
Checkpoint Controversy: Security or Centralization?
In response to reorg threats, the Bitcoin ABC development team introduced a controversial update: a rolling checkpoint system that prevents blockchain reorganizations deeper than 10 blocks. This means transactions with 10+ confirmations are considered irreversible by default—even if a longer, valid chain emerges.
While this enhances short-term security, critics argue it introduces new risks:
- It opens the door to chain splits if malicious actors release deep alternative chains.
- Users who don’t upgrade could end up on divergent versions of BCHABC—potentially creating "Bitcoin Cash ABC Classic" vs. "Checkpoint" forks.
- Most concerning, the change was implemented without broad consensus across other Bitcoin Cash development teams like Bitcoin Unlimited.
This unilateral decision raises serious questions about centralized control within the BCHABC ecosystem. In a space built on decentralization, such moves risk alienating core supporters and undermining trust in the protocol’s governance.
Calvin Ayre’s Strategic Moves
One of the most influential figures backing BCHSV is Calvin Ayre, billionaire founder of Coingeek and long-time Bitcoin Cash advocate. In the aftermath of the split, Ayre has taken an increasingly aggressive stance.
He has publicly accused key BCHABC figures—including Bitmain’s Jihan Wu, Bitcoin.com’s Roger Ver, and Kraken’s Jesse Powell—of market manipulation, claiming to possess documents that prove collusion. While no concrete evidence has surfaced yet, these allegations add legal uncertainty to an already volatile situation.
Additionally, Ayre proposed a peace deal: if BCHABC implements replay protection (to prevent accidental transactions on the wrong chain), he would cease hostilities. However, implementing replay protection risks further fragmentation—if not all users adopt it, it could trigger another fork within BCHABC itself.
With no sign of de-escalation, the threat of future 51% attacks remains very real.
Market Impact and Chain Adoption
Despite the technical progress, investor sentiment has soured. Just one week before the split, Bitcoin Cash traded around $600**. Today, BCHABC trades at approximately **$195, while BCHSV hovers near $45**, combining for just **$240—a staggering 60% drop in total value.
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Several factors contributed to this decline:
- Fear of prolonged hash wars
- Loss of investor confidence due to infighting
- Broader crypto market contagion
Nevertheless, both chains are establishing independent identities:
- BCHABC is widely recognized as the continuation of Bitcoin Cash across major exchanges and wallets.
- BCHSV is gaining traction with dedicated infrastructure like block explorers and mining pools.
- Notably, BCHSV has mined blocks exceeding 32 megabytes, showcasing its commitment to large-block scalability—though not without technical hiccups.
Frequently Asked Questions (FAQ)
What caused the Bitcoin Cash split?
The split stemmed from ideological and technical disagreements between developers. The core issue was whether to prioritize on-chain scaling (favored by BCHSV) or adopt new smart contract features (supported by BCHABC).
Which chain is considered “real” Bitcoin Cash?
There’s no official answer. Most exchanges and services treat BCHABC as the mainline Bitcoin Cash due to higher hash power and broader support. However, BCHSV supporters argue their vision aligns more closely with Satoshi Nakamoto’s original whitepaper.
Can both chains survive long-term?
Yes—but survival depends on sustained miner support, developer activity, and merchant adoption. Currently, BCHABC has stronger momentum, but BCHSV retains significant financial backing.
What is replay protection, and why hasn’t it been implemented?
Replay protection ensures transactions on one chain don’t accidentally execute on the other. It hasn’t been adopted by BCHABC partly due to concerns it might cause another unintended fork if not universally implemented.
How do hard forks affect cryptocurrency prices?
Hard forks often lead to short-term price drops due to uncertainty, duplication of supply, and fears of network instability. Long-term performance depends on post-fork adoption and utility.
Should investors hold both BCHABC and BCHSV after the split?
Holding both gives exposure to each chain’s potential upside. However, investors should assess each project’s fundamentals, roadmap, and community strength before making decisions.
Final Outlook
The Bitcoin Cash split marks a pivotal moment in cryptocurrency history—not just technically, but culturally. It underscores the challenges of decentralized governance when strong personalities and economic incentives collide.
While BCHABC currently leads in infrastructure and market trust, BCHSV remains a formidable contender with deep pockets and ideological fervor. The endurance attack may continue for weeks or even months, testing the resilience of both networks.
For users and investors alike, clarity is emerging—but caution is still warranted.
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