Possible hard fork for Bitcoin Cash on 15.11.2018

Pictured: Bitcoin sign on a platter next to two forks

Source: DF Markets

Dear clients,

Please be advised that a Bitcoin Cash (BCH) hard fork may take place soon due to a scheduled protocol upgrade.

Since this could significantly impact the cryptocurrency markets, we would like to draw your attention to how the upcoming hard fork may affect your open BCH positions.

The upgrade is expected to happen on 15 November 2018 at approximately 4 PM UK Time. Note, however, that this scenario is not 100% certain and that the fork could happen sooner, later, or not occur at all.

Please be warned that all CFD trading on Bitcoin Cash could be suspended for a certain period of time prior to and following the fork. Starting from 15.11.2018, 8:30 AM UK Time, DF Markets will no longer accept short positions and will maintain this policy until the Bitcoin Cash network stabilises.

The hard fork situation explained


The Bitcoin Cash blockchain is usually upgraded once or twice per year and, as long as everyone involved agrees on how the network should work, these changes cause little to no disruption.

However, this might not be the case with the upcoming update as two of the largest mining pools on the markets – Bitmain Technologies (Jihan Wu) and CoinGeek (Calvin Ayre) – currently battle for control.

The two giants are waging what is essentially a proxy war by funding the leading development teams for Bitcoin Cash – Bitcoin ABC and nChain, respectively, each of which is trying to push their agenda in the hopes of increasing their market presence.

In a nutshell, Bitcoin ABC’ agenda is to:

– Implement changes in the BCH scripting language;

– Increase the scalability of the Bitcoin Cash;

– Enable BCH to support smart contracts;

– Limit the transaction size to 100 bytes.

In a nutshell, nChain’s agenda is to:

– Increase the block size to 128mb (four times the current block size);

– Preserve BCH as electronic cash in line with Satoshi Nakamotos’ vision.

With the chances of a hard fork increasing, the price of BCH has already shot up by more than 40% in just a matter of days. However, it’s too early to gauge how this monumental price surge will impact the markets.

Please keep in mind that around 60% of the nodes have already casted their votes in favour of Bitmains’ proposal, while around 30% support Nchains’ vision for Bitcoin Cash.

Why your funds might be at risk


The Bitcoin Cash fork may have a highly volatile effect, causing abrupt and extensive price fluctuations, and leading to an absence of liquidity that could potentially result in significant losses.

In light of this, we urge you to re-evaluate your market strategy by considering the size of your positions and how you choose to manage them.

Please ensure that you have enough available funds in your account to be suitably prepared to meet all possible scenarios.