Are we about to see bitcoin death-spiral?
Take a look at the following graph
In the last 24 hours nearly 10% of the hashing power for sha-256 mining switched from bitcoin to bitcoincash. As you can see from the dip on the right-hand side, even more hashing power is switching to bitcoincash right now.
Why is this a potential problem for bitcoin? Take a look at the following screenshot:
If your difficulty is high and you have lost your hashing power, the time between blocks lengthens. It means people sending bitcoin will have to wait for blocks that take longer than 10 minutes, and the mempool will start to swell. The difficulty won't be able to adjust back down again for a few weeks.
This is not a problem if the bitcoin price holds. But if it starts tanking, and people try to get their coins to exchanges but can't get them there because the blocks arn't being mined quickly, a panic narrative could emerge, where people start dumping coins when they finally do get them to the exchanges.
My advice is not to use bitcoin to move money in the next few weeks. Use Steem, or doge or litecoin or bitcoincash.
A lot of people are talking here based on emotions and feelings. Thx for bringing this up, this is really a threat.
even if you refuse to use BCH it is still intelligent to take your money out of BTC (into dash or litecoin maybe) until this is resolved. The death spiral is something bitcoin has never faced as it is the august fork that made this possible. Many people don't realise that while BCH is around and has the ability to reduce difficulty BTC is extremely vulnerable to any kind of sell off. http://fork.lol/
Great report and thanks for the chart sources.
I think that the spiral is already in motion and it's being managed, akin to a collapsing economy that is being propped up by government manipulation of it. But, I think that the velocity of the cryptocurrency universe is much higher than a bloated government run economy and that the crashing waves can only be held back for so long before it becomes apparent as to what is happening.
Already, over the past couple days, there's been an exponential increase in the reporting of this issue and people are getting wise.
Excellent information here. Do you believe this is going to push the price of BCH up even further or drop it down since there are more miners selling the tokens which are now being mined faster. Korean exchanges accounted for 50% of the volume in the past day or so according to Boxmining
The miners can only sell their reward coins (the coins they get for mining a block) after 100 confirmations . So I don't think the bitcoincash price will tank yet. It depends on what the community does - if there is a concerted effort to make sure the price doesn't fall, it could attract other speculators, who absorb the coins the miners are minting.
This is a great post. But the biggest lie of them all is the world could possibly be flat!! Do you think the world is flat? I know this sounds absurd but it's all over net surely it should be looked into. Can you imagine how much money NASA has gone through and they could be full of shit.