The bitcoin cash price climbed approximately 20% on Wednesday following the announcement that its network will undergo a hard fork on November 13 to update its consensus algorithm.
Bitcoin Cash to Hard Fork on November 13
Earlier this week, Bitcoin ABC announced that it would release bitcoin cash software that would activate a hard fork — a protocol upgrade that is incompatible with legacy software versions — on November 13. This will be the cryptocurrency’s first official hard fork since August 1, when it was created by forking the bitcoin blockchain.
During its first three months, bitcoin cash has been plagued by severe hashrate and blocktime fluctuations, problems that stem from the structure of the network’s difficulty adjustment algorithm (DAA). Under the network’s current consensus rules, miners have been able to exploit the DAA to ensure maximum profitability, causing inconsistent blocktimes and a rapidly-inflating coin supply.
The proposed hard fork updates the DAA to adjust dynamically to rapid hashrate shifts and target a mean block interval of 10 minutes, with the intent of bringing stability to the network — and the cryptocurrency’s economic prospects.
Although there is agreement that the DAA needs to be upgraded, there has been some dissension within the community about the process through which Bitcoin ABC proposed the fork. Bitcoin Classic developer Thomas Zander was particularly critical, accusing Bitcoin ABC of favoring the DAA proposed by one of its developers and making the decision behind closed doors.
Bitcoin Cash Price Posts 60% Weekly Gain
Nevertheless, consensus appears to be coalescing around Bitcoin ABC’s proposal, preventing a disastrous situation in which bitcoin cash would undergo a blockchain split and splinter its community into competing portions. This development restored trader confidence in the bitcoin cash price’s short-term prospects and enabled the cryptocurrency to resume the bullish trend it began last week.
After beginning the day at $440, the bitcoin cash price rose nearly 20%, fueled by heavy volume on South Korean exchanges. Before long, bitcoin cash crossed the $500 threshold, and it has since extended to a present value of $521. Bitcoin cash has now posted a 7-day gain of nearly 60%, enabling its market cap to swell to $8.7 billion. Bolstered by this advance, bitcoin cash seized the third spot in the market cap rankings from ripple, which is currently valued at $7.4 billion following a daily decline of 4%.