The upcoming Bitcoin Cash hard-fork triggers some interesting opportunities. Numerous exchanges offer pre-fork trading of BCHSV and BCHABC. Both Poloniex and HitBTC are in the process of trading these “futures” at this time.
Pre-fork Trading Underway
Numerous cryptocurrency exchanges plan to support the upcoming Bitcoin Cash hard fork. It is expected the network will split into two parts. One chain follows the vision of Craig Wright (who claims to be Bitcoin creator Satoshi Nakamoto) known as Bitcoin SV (Satoshi’s Vision).
The other half follows the current developers, who rely on Bitcoin ABC’s software. Until the network sorts itself out, it remains unclear if there will one, two, or three forms of Bitcoin Cash 00 moving forward.
For exchanges, this creates interesting opportunities. Both Poloniex and HitBTC offer pre-fork trading at this time. They are both trading “futures” for both BCHSV and BCHABC. This does not replace the traditional BCH market, which is still in place. Instead, users can trade IOU’s for the two potential new tokens coming to market after the fork.
Seemingly, the three versions of Bitcoin Cash trade at different values. Poloniex’s platform indicates support for BCHSV is significantly lower than BCHABC. Additionally, BCHSV is currently trading at a far lower value compared to Bitcoin Cash (BCH) as well.
That seems to indicate a lot of speculators have a certain bias toward Craig Wright’s take on this chain. BCHABC’s value, on the other hand, is trading over 10% lower compared to BCH.
Once the fork happens, the ongoing “spat” between Roger Ver and Craig Wright can be settled once and for all. Both individuals have conflicting views, albeit the community has to decide if either idea proves to be viable for the long run.
What To Expect on November 15th
Speculative prices associated with non-existing coins are never an official market indicator. This current trend shows the Bitcoin SV chain will plummet in value compared to Bitcoin Cash itself. Not an impossible scenario, but things can play out differently when everything is said and done.
Last year, for example, speculators indicated the value of Bitcoin Cash would be half of Bitcoin’s prior to the currency being released. That scenario never came to fruition.
Volume-wise, Bitcoin Cash still maintains the highest volume. On Poloniex, it is over twice as popular as BCHSV trading. Additionally, it generates over 8 times the volume of BCHABC.
HitBTC, the other exchange allowing pre-fork trading, shows a similar sentiment. Its value of BCHSV is even higher compared to Poloniex, whereas BCHABC is valued the same. Neither market generates any real volume at this time.
Users interested in the fork will need to split their coins accordingly. This can be done by using the eligible exchange or third-party tools. The fork is set to go into effect on November 15 of 2018. The pre-fork traded balances will be made available to users after that date on both Poloniex and HitBTC.
Do keep in mind there is no official replay protection for the viable chains after the fork, assuming there is more than one. Users need to take ample precautions to keep their funds safe.
Will it be winner takes all in the Bitcoin Cash civil war? Share your thoughts below!