The latest Bitcoin Cash (BCH) network update has resulted in a complex battle, and the blockchain has been split into two: BCH ABC is in one corner, and BCH SV is in the other.
The ABC team was led by Bitcoin.com CEO Roger Ver and the Bitmain CEO Jihan WU. The SV team was spearheaded by nChain’s Craig Wright and Calvin Ayre. At the moment, the BCHABC is ahead of BCHSV in terms of both blocks mined and price.
At press time, Bitcoin Cash ABC was falling at 3.83% with the market cap still in flux. The 24-hour volume was holding at $64.203 million and the cryptocurrency was trading for $255.02. A majority of the cryptocurrency’s volume came from Binance, which had a hold on $24.436 million of all the BCHABC trade. Binance was followed by Poloniex, the exchange on which 9.40% of the total BCHABC trade occurred.
The hard fork has created clear battle lines between users on the network which includes famous officials like Charlie Lee, the Founder of Litecoin [LTC]. He had said:
“The thing, why is there so much drama when miners should be the ones deciding. There shouldn’t be any drama right…whoever has the most hashrate wins.”
The status after the fork
Bitcoin ABC (from Roger Ver) is ahead of the total blocks mined. Mining blocks as fast as you can so you can become the longest blockchain is important to let others know you are the main blockchain.
Bitcoin SV said in a statement that they were offered much more hash power than Bitcoin ABC, but never agreed to use this. Their main reason was that this is hypocrisy at its max, renting hash power from the blockchain they forked from. And giving voting rights to people whose purpose is not to secure the blockchain they are mining.
A reminder, hash competitions are a marathon, not a sprint.
Never look st victory too soon…. pic.twitter.com/GFdCR4J2RA
— Dr Craig S Wright (@ProfFaustus) November 15, 2018
They compared it to paying Canadians to vote in the US. They are in it for the money and not because they believe in the US and have the best interest for the US.
Santoshi Nakamoto Consensus
It is important to think about the governing model when there are disagreements. When the Nakamoto Consensus was written in the Bitcoin white-paper, there was supposed to be only one Bitcoin network. Bitcoin Network has its magic in its economic incentives. Currently, the Nakamoto Consensus is being tested for the first time, he added.
Jimmy Nguyen, the CEO of nChain said:
“Satoshi Nakamoto could not have envisioned, at the time the white paper was written, that there was going to be some splintered-off network using the same hash algorithm. And with the idea of one CPU equals one vote, or miner hash power equals the vote, it was designed.”
Impact on Bitcoin Prices
We earlier wrote about why the Cryptocurrency market crashed on 14th November. It has extended technical and fundamental analysis of when things started to get ugly because of the BCH hard fork.
If the blocks mined are staying close together, both sides will commit more hashing power to stay ahead. Until there is a clear winner and one gives up, Bitcoin prices will keep being suppressed because of this.
Jihan Wu, founder of Bitmain and backing Bitcoin ABC, quoted:
“I have no intention to start a hash war with Craig, because if I do, by relocating hash power from BTC mining to BCH mining – BTC price will dump below yearly support; it may even breach $5,000. But since Craig is relentless, I am all in to fight till death!”
With this in mind, theunpredictabilityof influential individuals, who are on a path of war to kill ABC/SV, there could be several scenarios where the price of Bitcoin is going to tank. We don’t sweat 5–10% losses in a portfolio. But if this gets really ugly, we are talking about going further down in case Craig attempts a 51% attack.
Because this is a possibility on the short term, and with the crash last week with no signs of recovery yet, there is a chance of price crashing further.
One of the things we learn while trading long term is to stay out of unpredictable events. As this is one of the most important events in the history of blockchain that is unfolding in front of us. So, that’s what we advise the average investor, Stay put. Do not panic and sell if your stop orders have not been triggered yet. Also, trading in BTC, ETH, BNB pairs right now is the wiser thing to do.