If You're Holding Bitcoin (BTC), This Chart Should Make You Nervous
http://fork.lol/pow/hashrateabs
Hashrate is definitively leaving Bitcoin (BTC) for the more profitable Bitcoin Cash (BCH). This will cause delays and fees to be exacerbated on the Bitcoin (BTC) Blockchain for as long as it lasts, as fewer blocks are being found on the network. Bitcoin Cash (BCH) difficulty will adjust normally after 2016 blocks, which may make Bitcoin (BTC) more profitable again for a little while. If it does, the situation should be expected to repeat again, but perhaps less severely.
Another possibility is that the reduced reliability of Bitcoin (BTC) results in a drop in price, or an increase in price for Bitcoin Cash (BCH). In that case, Bitcoin Cash may continue to be more profitable even after adjustment, in which case Bitcoin (BTC) could be entering a vicious cycle of hashrate and price declines. The worse it gets, the longer it takes for the Bitcoin (BTC) difficulty to adjust to the lower hashrate.
Full disclosure: I have no stake in either Bitcoin (BTC) or Bitcoin Cash (BCH). I only hold altcoins.
Miners are going to switch to the chain they make the most money on. In theory if Bitcoin and Bitcoin Cash had the same market cap half the miners would be mining one and half would be mining the other. If Bitcoin is twice the market cap of Bitcoin Cash we would expect to see 66% of mining power on Bitcoin and 33% on Bitcoin Cash. I'm sure it will even out and miners will be making roughly the same on both chains...
It is possible that it will even out, but there are very plausible scenarios with no stable equilibrium for BTC. It all depends on how the market reacts to the changing behaviour of the network.
It's more related to mining difficulty than market cap. Bitcoin Cash has a mechanism to adjust difficulty with declining hashpower which BTC does not. They both respond differently to declining hashpower as a result (Bitcoin is arguably designed to die in a catastrophic hashpower collapse).
If you look at BCH's transaction volume, it's barely anything. The blocks are almost empty. It doesn't justify the current valuation.
Do you have a link concerning this? Isn't it normal as BCH is new and it takes time to make the blocks full?
either btc or bch will survive, no one knows which one but it feels good to hodl both :P
Won't altcoin crash if BTC crash?
Probably temporarily. However superceding the Bitcoin network effect is the greatest prize any altcoin can ask for. And if one altcoin can do it, then it opens up the possibility that another can beat that one. Competitive money, it's a good place to be before we end up with just one dominating the rest, because it allows the market to choose the traits it finds desirable in a cryptocurrency.
@demotruk - Sire, very useful information. I love your analysis and facts Sire. I hate this BTC drama Sire.
+W+ [ReSteemed & UpVoted]
Why do you call me Sire?
Just roll with it bro
😂
i am not even thinking about it will see it after very very long term ;D
It seems like BCH is just getting pumped and dumped again. I think that the masses mostly support BTC still but they need to fix the huge scaling issue they have as 3 transactions per second and sky high trading fees are going to make users move away sooner or later @demotruk
I've no position in either also, it's very interesting to watch though.
p.s. I'd like to renew (and potentially add to) my delegated SP when it's time - if all is well. And, thanks for the welcome boost on the RS, much appreciated!
I thought I replied about that before recently. If not, I'll be looking into it again this evening.
Yes it was mentioned a few weeks back and all was well i think. Who gets the reminder that it's expiring, me or you?
I'm supposed to remind you. I'll check up on it today.
Its so difficult to predict all we can do is look out for the small warning signs @rogerblu
As I understand it will still be more viable to mine BTC as the commission for miners is a lot more than on BCC that makes BTC still more lucrative to mine than BCC
Your understanding is not correct. The $ value received per hash is about 82% higher on BCC as compared to BTC at present.