Interested in access more free crypto analysis, resources and information like this? Check out these platforms:
Telegram — t.me/CoinEducation
Twitter — www.twitter.com/cryptomedicated
Perhaps the most contentious fork in Bitcoin history is Bitcoin Cash. There are many different stories/legends/propaganda surrounding its release, so we’ll try to keep this as brief and factual as possible.
During 2017, the impending launch of SegWit (before August), had created a great deal of ire and resentment in the community overall among those that felt that the block size should be adjusted. This friction in the community led to the ‘New York Agreement’. This agreement, which would’ve been a hard fork to ‘SegWit2x’, was supposed to be a compromise between the two opposing sides of Bitcoin. The miners on the network agreed to cooperate with the SegWit implementation under the condition that the block size would at least be increased to 2 MB.
However, this did not happen. One reason is due to the fact that the Core team rejected the New York proposal. Also, two huge mining pools, ViaBTC and Bitmain, felt that it would be in their best interest to help propel the creation of a hard fork that would have the bigger block sizes already built within it and would not contain any SegWit implemtation.
Here is a press release from Bitmain on the hard fork.
Profits vs. Bitcoin
For miners, the profits between Bitcoin Cash and Bitcoin oscillate. At first, Bitcoin Cash was substantially more profitable due to a flaw in its Proof of Work difficulty-adjustment algorithm. However, that was changed in November 2017, and the profitability between the two cryptocurrencies are now largely negligible most of the time.