All About the Bitcoin Cash Hard Fork

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Bitcoin Cash (BCH) has long stood as one of the most significant offshoots of the original Bitcoin network, consistently ranking among the top 30 cryptocurrencies by market capitalization. As a prominent example of a hard fork, Bitcoin Cash itself emerged from ideological and technical disagreements within the Bitcoin community. But its story didn’t end there—on November 15, 2018, Bitcoin Cash underwent another pivotal split, giving rise to Bitcoin SV (Satoshi’s Vision) and Bitcoin ABC, reigniting debates over scalability, decentralization, and blockchain philosophy.

This article explores the mechanics of hard forks, the events leading to the 2018 Bitcoin Cash split, key figures involved, and how these developments reflect broader trends in cryptocurrency evolution.

Understanding Hard Forks in Blockchain

A hard fork is a fundamental change to a blockchain’s protocol that makes previously invalid blocks and transactions valid—or vice versa. Because this upgrade is not backward-compatible, it effectively creates a permanent divergence from the previous version of the blockchain. At that point, two separate chains exist: one following the old rules and another operating under new ones.

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Unlike soft forks—where older nodes can still interact with the updated network—hard forks require all participants to upgrade their software. If consensus isn't reached, the chain splits, and a new cryptocurrency is born. This process is not inherently negative; hard forks can result from planned upgrades or community-driven innovations.

After a successful hard fork, users who held Bitcoin Cash at the time of the split typically received an equal amount of both resulting cryptocurrencies—BCH and BSV—on separate blockchains. This mechanism preserves ownership rights across both chains while allowing independent development paths.

The Origins of Bitcoin Cash: A Fork from Bitcoin

Before examining the 2018 split, it's essential to recognize that Bitcoin Cash itself is a hard fork of the original Bitcoin blockchain. It was created on August 1, 2017, following years of debate over how to scale Bitcoin for mainstream adoption.

The core disagreement centered on block size limits. The original Bitcoin network limited blocks to 1 MB, which restricted transaction throughput and led to high fees during peak usage. Proponents of larger blocks, including influential figures like Jihan Wu, Roger Ver, and Craig Wright, argued that increasing block size was the most straightforward way to improve scalability.

Their solution? Increase the block size to allow more transactions per block, reducing confirmation times and fees. When this proposal failed to gain majority support in the Bitcoin community, the group executed a hard fork to launch Bitcoin Cash with an initial 8 MB block size—later increased to 32 MB.

Opponents, including developers aligned with Blockstream, favored off-chain scaling solutions like the Lightning Network, which processes transactions outside the main chain. They warned that larger blocks could centralize mining power by requiring more storage and bandwidth, threatening decentralization.

Thus, Bitcoin Cash was born out of a philosophical divide—one that would resurface just over a year later.

The 2018 Bitcoin Cash Hard Fork: ABC vs. SV

By late 2018, tensions within the Bitcoin Cash community escalated over another proposed block size increase. This time, the debate pitted Bitcoin ABC ( Adjustable Blocksize Cap ), supported by much of the existing BCH development team, against Bitcoin SV, championed by Craig Wright and billionaire miner Calvin Ayre.

Bitcoin SV—standing for “Satoshi’s Vision”—proposed increasing the block size limit from 32 MB to a massive 128 MB. Advocates believed this would enable enterprise-level transaction processing and fulfill what they saw as Satoshi Nakamoto’s original vision for a peer-to-peer electronic cash system capable of global scale.

However, many in the BCH community viewed this change as unnecessary and potentially dangerous. They feared it could lead to further centralization, as only well-resourced entities could afford to run full nodes on such a large blockchain.

When consensus failed, the network split on November 15, 2018. The chain continuing under the original development roadmap retained the Bitcoin Cash (BCH) name, powered by Bitcoin ABC. The opposing faction launched Bitcoin SV (BSV) as its own independent cryptocurrency.

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Key Figures Behind the Split

Roger Ver – “Bitcoin Jesus”

Roger Ver, often called “Bitcoin Jesus” for his early and passionate advocacy of cryptocurrency, was a major backer of Bitcoin Cash. He strongly opposed the creation of Bitcoin SV and continued supporting Bitcoin ABC after the fork. His influence helped maintain momentum for BCH as a usable digital currency focused on fast, low-cost transactions.

Craig Wright – The Self-Proclaimed Satoshi

Craig Wright claimed repeatedly to be Satoshi Nakamoto, the anonymous creator of Bitcoin. His assertion that Bitcoin SV represented “Satoshi’s Vision” became central to BSV’s branding. However, his credibility faced legal challenges: In February 2024, the Crypto Open Patent Alliance (COPA) sued Wright for falsely claiming authorship of Bitcoin. By March 2024, a court ruled in favor of COPA, finding overwhelming evidence against Wright’s claims.

Despite this setback, Wright’s role in pushing for larger blocks left a lasting mark on blockchain discourse.

Why Block Size Matters

Block size directly affects a blockchain’s capacity. Larger blocks mean more transactions per second (TPS), potentially lowering fees and improving user experience. For instance:

While higher throughput sounds beneficial, trade-offs exist:

These technical considerations underscore why hard forks often reflect deeper ideological battles about what a blockchain should prioritize: decentralization or scalability.

Frequently Asked Questions (FAQ)

Q: Is Bitcoin Cash a hard fork of Bitcoin?
A: Yes. Bitcoin Cash originated as a hard fork of the Bitcoin blockchain on August 1, 2017, due to disagreements over block size and scalability.

Q: What caused the 2018 Bitcoin Cash hard fork?
A: The split resulted from disagreements between developers over increasing block size limits. One side wanted to raise it to 128 MB (Bitcoin SV), while the other preferred stability (Bitcoin ABC/BCH).

Q: Did users receive free coins after the fork?
A: Yes. Anyone holding Bitcoin Cash at the time of the November 2018 fork generally received an equal amount of Bitcoin SV on the new chain.

Q: Who controls Bitcoin Cash now?
A: No single entity controls it. Development is led by independent teams like BCHABC, with input from miners and node operators.

Q: Can hard forks happen again?
A: Absolutely. As long as disagreements exist over protocol changes, hard forks remain a possible outcome in decentralized networks.

Q: Is Bitcoin SV still active today?
A: Yes. Though controversial due to Craig Wright’s legal issues, Bitcoin SV continues as a separate blockchain with its own ecosystem and use cases.

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Final Thoughts

The history of Bitcoin Cash illustrates how innovation in cryptocurrency often emerges through conflict. From its origin as a fork of Bitcoin to its own fragmentation in 2018, BCH exemplifies how differing visions for scalability and governance shape digital currencies.

Hard forks are not just technical events—they are expressions of community values. Whether driven by ideology, economics, or personal ambition, they highlight the dynamic nature of blockchain evolution.

As new challenges arise—scaling, regulation, interoperability—the potential for future forks remains real. Understanding their causes and consequences empowers investors, developers, and users alike to navigate this ever-changing landscape with confidence.

Core Keywords: Bitcoin Cash, hard fork, Bitcoin SV, blockchain, block size, cryptocurrency, BCH, Satoshi's Vision