On November 15th, 2018, the Bitcoin Cash blockchain network will undergo a scheduled hard fork. However, due to a dispute in the Bitcoin Cash community, the hard fork could result in the creation of one or more new crypto assets. On the days around the event, eToro will halt Bitcoin Cash trading for a yet-to-be-determined time period.
This blog post will describe what the hard fork means and how it could impact BCH trading on eToro. We will be updating this post with new information as we receive it.
What is the Bitcoin Cash hard fork?
Bitcoin Cash undergoes a scheduled hard fork every 6 months to ensure that the blockchain infrastructure on which it is built is optimised. Despite the dramatic name, a hard fork is quite common in blockchain technology and can often go unnoticed. However, since blockchain is a decentralised system, hard forks need to be approved by the network members (nodes or miners), which is where problems could begin.
Regarding the upcoming hard fork, the Bitcoin Cash community is split into two main camps: ABC and SV. The ABC camp wishes to add new features to the blockchain, such as Ethereum-style smart contracts, while the SV camp wants to replace the network’s script with its own, which is based on the original Bitcoin code, but with a much larger, 128MB block size.
If the hard fork is implemented and the network’s members remain in dispute, a new blockchain could be created, resulting in an entirely new cryptoasset being created. Ironically, Bitcoin Cash itself was created as the result of a hard fork to the original Bitcoin blockchain network in August, 2017.
How will this affect trading on eToro?
Due to the highly unpredictable nature of this hard fork, which could result in major disruptions in exchanges and liquidity providers, eToro will be suspending all Bitcoin Cash trading from Wednesday, November 14th at 22:00 GMT until further notice. This is a precautionary measure, to ensure maximum security of our clients’ funds.
During the trading halt, there will be no price updates for BCH, opening new positions or closing existing ones will not be permitted, editing of SL/TP will not be available, and there will be no execution of pending orders or placing of new orders.
eToro Wallet users should also note that BCH will not be available for exchange or transfer during the trading halt.
The length of the trading halt will depend on market conditions and will last for an unknown period of time. However, we will do our best to make sure that the halt is as short as possible. Please be aware of the above changes and be sure to prepare your crypto portfolio accordingly.
Please make sure to check your inbox and follow this blog post for updates.
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