The cryptocurrency world is no stranger to hard forks, but few have drawn as much attention as the Bitcoin Cash (BCH) network’s recurring splits. While Ethereum 2.0 staking has dominated headlines recently, the November hard fork of BCH stands out—especially given its deep-rooted community conflicts and technical implications.
In this guide, we’ll walk through the BCH fork history, unpack the reasons behind the latest split, and help you understand what it means for your holdings. Whether you're holding BCH long-term or just curious about blockchain evolution, this breakdown will clarify the past, present, and future of Bitcoin Cash.
The Evolution of Bitcoin Cash: A Legacy of Forks
Bitcoin Cash itself was born from a fork—specifically, the August 1, 2017 split from Bitcoin (BTC). This marked the first major fork in Bitcoin’s history, driven by debates over block size limitations. The result? BTC maintained its 1MB block cap, while BCH increased it to 8MB (later raised further), aiming for faster and cheaper transactions.
But that wasn’t the end.
Second Fork: BCH vs BSV (November 2018)
In November 2018, another ideological rift emerged within the BCH community. This time, it was between two camps:
- Bitcoin Cash ABC (Adjustable Blocksize Cap) – backed by developers wanting protocol upgrades.
- Bitcoin SV (Satoshi Vision) – led by Craig Wright and Calvin Ayre, advocating for massive blocks and strict adherence to early Bitcoin principles.
The outcome? A hard fork creating BCH ABC (which retained the "BCH" ticker on most exchanges) and BSV as a separate chain.
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Third Fork: Enter BCHA and BCHN (November 2024)
Fast forward to November 2024, and history repeats—with a twist.
This third major split stems not from scaling debates, but from a funding model known as IFP (Infrastructure Funding Plan). Unlike BTC or ETH, the BCH development team operates without stable financial backing. Developers work voluntarily, often under financial strain.
To address this, the Bitcoin ABC team proposed IFP: an 8% levy on block rewards to fund ongoing development. Think of it like a built-in dev tax—similar to models used in Zcash or Monero.
While seemingly fair, this move sparked fierce opposition—especially from miners who saw it as a reduction in their earnings.
The Rise of BCHN: A Community-Led Alternative
When the IFP proposal met resistance, a new node implementation entered the scene: Bitcoin Cash Node (BCHN).
Launched in early 2024, BCHN positioned itself as a miner- and user-friendly alternative to the IFP-backed BCHA (Bitcoin Cash ABC with IFP). It rejected mandatory developer taxation, instead promoting community-driven funding.
Key supporters quickly lined up:
- Roger Ver, once a major BCH advocate, publicly opposed IFP and backed BCHN.
- Jiang Zhuoer, prominent Chinese miner and Bitmain supporter, also shifted allegiance due to communication breakdowns with the ABC team.
Market sentiment followed suit. On exchanges like MXC, pre-fork trading showed a stark contrast:
- BCHD (BCHN chain): ~$237
- BCHA (IFP chain): ~$16.8
This massive price gap reflects strong community preference for the non-tax model.
What This Means for BCH Holders
If you're holding BCH on a supported exchange or in your private wallet, here's what you need to know:
1. You May Receive Two Tokens
After the fork, holders typically receive equal amounts of both resulting chains:
- One unit of BCHN (the dominant chain)
- One unit of BCHA (the minority chain)
However, not all exchanges support both tokens. Some may only credit the more widely accepted version (likely BCHN), so check your platform’s announcement page.
2. Price Volatility Is Expected
Historical precedent shows significant price swings during forks:
- After the 2018 BSV split, BCH dropped nearly 80% in weeks.
- BSV initially surged post-fork but later stabilized at lower levels.
Expect similar volatility around this event. Markets often overreact before finding equilibrium.
3. Smart Strategies for Maximizing Value
Instead of passively waiting for airdrops, consider proactive approaches:
Hedge Your Position
Buy $100 worth of BCH and simultaneously short $100 via futures or margin trading. This neutralizes price risk. Any forked coins you receive become pure profit.
Monitor Chain Activity
Watch hash rate distribution and exchange listings. Chains with stronger mining support and broader adoption tend to retain long-term value.
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Frequently Asked Questions (FAQ)
Q: Will I automatically get BCHA if I hold BCH?
A: If you hold BCH on a supporting exchange or in a personal wallet before the fork block, yes—you should receive BCHA tokens. But confirm with your provider whether they distribute both chains.
Q: Which chain is considered “real” Bitcoin Cash?
A: There’s no official answer. Most exchanges and services use BCHN due to broader consensus and higher market demand. However, both chains are technically valid.
Q: Is BCHA doomed after the fork?
A: Not necessarily. While currently undervalued, minority chains can gain traction if they attract developers or unique use cases. Still, low hash power increases vulnerability to attacks.
Q: Can I lose money during a hard fork?
A: Direct loss only happens if you mismanage private keys or fall for scams. However, market volatility can reduce your portfolio value temporarily.
Q: Should I sell my BCH before the fork?
A: It depends on your risk tolerance. Some traders sell ahead of forks to avoid uncertainty; others buy in anticipation of free tokens. Diversifying or hedging is often safer than timing the market.
Q: How do I keep my coins safe during a fork?
A: Use a non-custodial wallet like Electron Cash or Ledger. Avoid moving funds right at the fork time to prevent replay attacks. Enable replay protection if available.
The Bigger Picture: Developers vs Miners
At its core, this fork represents a recurring theme in decentralized networks: governance conflict.
- Developers argue they need sustainable funding to innovate and maintain security.
- Miners see themselves as the backbone of the network and resist any reduction in rewards.
There’s no perfect solution—but this tension ensures that no single group gains unchecked control. That balance, though messy, aligns with blockchain’s ethos of decentralization.
While IFP failed this round, it may return in future iterations. Other projects might adopt hybrid models—voluntary donations, grants, or treasury systems—to avoid such clashes.
Final Thoughts: What Should You Do Now?
If you're sitting on BCH:
- Stay informed – Follow official node announcements and exchange policies.
- Secure your assets – Use trusted wallets and enable two-factor authentication.
- Consider hedging – Protect against downside risk while capturing potential upside from forked tokens.
- Think long-term – Market noise fades; fundamentals matter most.
Forks aren’t just technical events—they’re social experiments in digital governance. By understanding them, you’re not just protecting your portfolio; you’re becoming part of the blockchain story.