At time of publishing, Bitcoin Cash’s absolute hashrate is twice that of Legacy Bitcoin. At the same time, its block difficulty remains significantly lower. This phenomenon has made mining Bitcoin Cash highly lucrative compared to its counterpart, and miners have continued to make the transition.
The most obvious impact has been the the speed of each network. Whereas Bitcoin has historically completed transactions in minutes, now those same transactions are taking upwards of 24 hours. The result: well over 100,000 transactions remain frozen. To calculate the speed of each network, simply divide the hashrate by network difficulty.
BCH: Difficulty 130 billion, Hashrate 6.72
BTC: Difficulty 1.364 trillion, Hashrate 3.29
Letting fork.lol crunch the numbers for us yields the following chart:
Bitcoin Cash now showcases superior hash rate, speed, and block size (8 MB blocks compared to BTC 1 MB blocks). As a result, it has been able to handle the unprecedented network traffic, whereas Bitcoin has not.
So Why Has the Price Crashed?
It seemed that Bitcoin Cash had unstoppable momentum until late last night. After reaching an ATH (all-time high) of $2899, it quickly sold off and is settling between $1300-$1400 at press time. Possible reasons for this are numerous, but a few of them are prominent:
- Rumored Roger Ver pump and dump
- Chinese Conspiracy to Topple BTC and instate BCH as the dominant digital currency
- Natural correction following hypoxic gains
Roger Ver recently made an all-too-public blockchain transfer of $25,000 BTC to an address associated with his website. The timing is highly suspect, as is the act of making a massive wealth transfer over the most transparent system known to man. The action is believed to be intended to send a message to traders, further manipulating the market.
As for the Chinese conspiracy, this excerpt from pastebin.com says it all:
- The plan goes like this:
- Chinese miners (f2pool, antpool etc etc) have organised with major exchanges (via/huobi/okcoin etc) to support and launch bitcoin cash.
- Initially they will let everyone who wants to sell, sell.
- Once the coin has bottomed out, and everyone who wanted to sell has sold, they [chinese miners/jihad/chinese exchanges] will begin accumulating lots and lots of bitcoin cash.
- They will then begin to pump the price to around 0.1 BCC/BTC – 10%
- The big pools won’t mine it ~ they will let the smaller pools see the returns from mining this expensive, but low difficulty coin and start mining it.
- Later, the larger pools will join, and as we know, jihad has ALOT of hashing power, their plan is for bitcoin cash to have more hashing power than bitcoin ~ and lets be honest, once t he chinese move over, that is pretty much it.
- Around this time, the ‘hard fork’ section of segwit 2x is not going to happen ~ it never was – Bitcoin cash will then be seen as the original NYA coin..
- At that point in time, Bitcoin cash will be on all major chinese exchanges, possibly some western exchanges aswell, and have majority hashing power. Western companies & other merchant providers (BitPay – @Spair) etc – paid off by bitmain etc will go along with the new bitcoin cash narrative and will push for the ‘bitcoin cash’ to be called ‘bitcoin’ on all their platforms, leaving only coinbase et all which will then be the odd ones out..
- Now comes the scary part, The old bitcoin, the bitcoin we know and love, is going to get DESTROYED.
- What determines a coins success ? It’s market cap.
- Big old school blockers and miners are going to dump bitcoin back to the bottom, they will take literally billions and billions of dollars out of bitcoin. They will use the money to fund the marketing, and development, or ‘bitcoin cash’ – Think, Bitcoin core – FIRED. Think – forbes article, “why bitcoin miners and companies are moving to bitcoin cash” – think – “Why the market is chosing bitcoin cash as bitcoin not bitcoin core” – They wil lsay the market has spoken, that people have voted with their money.
- Right now, massive huge shorts are being built, already on finex, shorts are at 32k – not seen since $200 these kinds of numbers of shorts, and its climbing, all the t ime, consistently, they have ALOT of coins to short.
- The most painful kind of selling, is where it never bounces and if you remember MtGox from $1000 to $70, you’ll remember what no bounces feels like ~ and I can tell you. This won’t be any better.
Much of this has come into play, some of it has not, at least not exactly as designed. Is this believable? Unsure. Right now all digital currencies still trade in the form of Legacy Bitcoin satoshis on all exchanges, and until that changes, Legacy Bitcoin is ‘the Bitcoin’.
It could be a natural correction. BCH climbing from a few hundred dollars to $2900 in a few days is not natural. BCH is approaching support near $1200, and whether it holds or not will be very telling.
What Ever Happened to Decentralization?
Over the course of the last few days, one thing has become clear. Manipulation in this market is possible, and it is happening. Bitcoin’s decentralization facade is waning, and we are beginning to see its underlying problems. Even if the currency itself is decentralized, the mining network has become centralized in a threatening way. This problem must be solved in order to carry Bitcoin into the future in line with Nakamoto’s vision.
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