The total cost of the ongoing ‘hash rate war’ affecting Bitcoin Cash has topped $11.8 million, data from Hong Kong-based cryptocurrency trading platform BitMEX shows.
BCH SV BEARS BRUNT OF GIANT LOSSES
Fresh research uploaded to social media November 21 reveals the true extent of the curious phenomenon, in which miners have opted to mine Bitcoin Cash’s two forks at a loss.
Of those forks, Bitcoin Cash ‘Satoshi’s Vision’ (BCHSV) has incurred by far the biggest losses to date, totalling around $2.2 million gross with a negative profit margin of 441 percent.
Bitcoin Cash ABC (BCHABC), the competing fork, has accrued $1.3 million losses with a 51 percent negative profit margin.
The calculations were based “assuming cheap electricity costs”of $0.05 per kilowatt hour, BitMEX added.
Hash war estimated costs live update
* Estimated leasing fees: $11.8m
* Combined gross losses: $8.9m
Even assuming cheap energy costs, SV miners have a negative gross margin of 441% & $2.2m of gross losses. pic.twitter.com/ALNMzg5Mgu
— BitMEX Research (@BitMEXResearch) November 21, 2018
AN END IN SIGHT?
Bitcoin Cash’s rival chains have kept up efforts to subdue one another as part of a wider publicity tug-of-war which has since expanded beyond the immediate community.
This week, SV proponent Calvin Ayre claimed he would be releasing legal documents allegedly filed with US regulators about exchange Kraken’s involvement in “market manipulation and more.”
Kraken had opted to support trading of both forks on its platform, releasing a strongly-worded warning about SV being an “extremely high risk investment.”
The exchange’s SV/USD pair traded as low as $29 following its debut, SV also struggling with a blockchain re-organisation from its own supporter Coingeek which led to public accusations of Centralisation.
Discussing his early “trading off” of centralization in the early days of Litecoin, creator Charlie Lee referred to an email from Satoshi Nakamoto describing the importance of the longest chain being considered valid in a proof-of-work network.
“If this is not true, then it’s not decentralised as you have to trust someone to tell you which is the right chain,” he wrote Wednesday.
The whole point of Decentralisation and sound money is that you don’t have to trust anyone.
In a subsequent poston Friday, Ayre conversely appeared to want to end the war in order to focus on what fellow supporter Craig Wright termed “business applications.”
In discussions with Calvin and his team, they want to focus on the Business applications we have coming in the new year and I respect his advice. As the following message from Calvin says, if they add replay protection, we will let the market decide.https://t.co/Ig7PcFI3fA
— Dr Craig S Wright (@ProfFaustus) November 23, 2018
“If they [Bitcoin Cash ABC] add replay protection, we will let the market decide,” Wright added.