Go, Bitcoin Cash, Go!
We were up as high as 90% today. What's going on? Is Roger Ver on a tear? Leading a counter-revolution to Bitcoin?
Today Coindesk announced that Bitcoin Cash is more profitable to mine than Bitcoin, with miners making around 2% more on Bitcoin Cash than on Bitcoin. It looks like 92% of all Bitcoin Cash is being mined by the same entity or pool.
And when Block 479,808 of Bitcoin Cash is completed (likely this weekend) it will cause an automatic 50% downward adjustment of the difficulty level, which will mean miners make almost double on Bitcoin Cash as they would on Bitcoin.
On the other hand, Bitcoin Cash takes twice as long as Bitcoin to reach the 100 confirmations needed to spend the mining reward (34 hours vs. 17) and the Bitcoin blockchain charges higher fees on transactions.
I think it's safe to say now that the expected mass dumping of BCH is not going to happen. Those who held BCH coins out of the fork are mostly saying "hold" instead of sell, watching and waiting to see what happens.
I am not saying any of this as promoter of BCH over BTC supporter. On the contrary, I own plenty of Bitcoin, but until recently I wasn't that excited about the Bitcoin Cash I got from the fork. But now I am!
Now if only I could get my BCH out of my Jaxx wallet 18 days after the fork!
What do you think?
Kicking myself for selling lol, I never thought it would come back. Is this legit or is this a pump?
Oh damn that's too bad. Yeah I think it's a pump. I'd love to sell into it, but we still don't have our BCH from the Jaxx wallet! It's starting to be actually funny. I've heard people say that Hedge Funds will continue to pump and dump BCH over and over. Not sure if that's true or not.
ahnnnnnn
do you still use the Jaxx, I think you must turn to Exodus when ever you got the chance.
I need to get an Exodus as well. I can't leave Jaxx till they give me my BCH and till they fix the ShapeShift so I can shift my ICN back to BTC and get it out of there. So at least some of my funds are stuck on there.
The whole point of the cryptocurrencies is to be decentralized, that much mining being performed by a single pool is concerning because the 51% attack is viable. @pablopenguin did a write up on this two days ago here, definitely worth a read - the comments as well. Maybe you even got your info there?
I think if someone wants to topple BCH they will have to act fast, because with those profit margins the mining pool should increase quickly. I decided just to hold mine and see what happens, but as long as the mining pool is that small, I won't be buying.
No I didn't get my info from @pablopenguin, but I am a bit embarrassed to find out I covered a topic someone else just wrote about, and probably with much more expertise. I just saw the headline on Coinbase today and thought, "Wow! That's news." I didn't search Steemit before I posted.
Probably with the mining becoming much more profitable the pools will diversify quickly and not be so concentrated in one group. I've seen other sources predicting the difficulty level will drop 60% this weekend.
I haven't been able to access my BCH yet, so I've had no choice but to HODL. I am not going to be buying more, but right now I'm excited that it's gone up so much. My first thought was, "I can cash it in for more Bitcoin!"
Don't be embarrassed about writing about something someone else did, we all have different takes on the issues and they are worth being heard!
Yes, and especially after I read @pablopenguin's piece I realized we had very different focuses and even purposes in writing what we did. He is I believe a Bitcoin partisan and is trying to make the case against Bitcoin Cash. The fact that until recently 1 miner does 92% is something he was using as evidence that Bitcoin Cash is not decentralized and should be ignored. I am neither a Bitcoin nor Bitcoin Cash partisan. I do not have strong feelings about who rightfully owns the moral high ground or wears the crown of the original Bitcoin, except from a pragmatic point of view that I think it would be easier if we continued with Bitcoin as the standard. However, my interest in Bitcoin Cash right now is economic. I still have BCH I haven't collected from the fork and I can't help being excited that something I own that I had written off as potentially worthless is now nearly $900 per coin. To me that is free money. I will very likely try to sell my BCH for as much as I can so I can buy more bitcoin. But I did start looking at what people are saying about Bitcoin Cash mining and I thought it was interesting that as of this weekend when the difficulty level drops by 50% to 60% BCH will technically be more profitable to mine than BTC. This is not a political argument! I have no dog in this fight. I just find the whole story of cryptocurrencies that is still being written right in front of our eyes to be an endless source of fascination.
I totally understand, I am not emotionally invested in the BTC/BCH split and happy to see cryptos of all stripes doing well. Anything that hastens the fall of the central banking system is good by me (that's the dog I have in the fight ;). Don't get me wrong, I am happy to see my BCH doing so well! I am just cautious at this point because the risk seems high at the moment. If a 51% attack takes place, it would collapse demand for the coin and could damage perception of the wider crypto environment and hence adoption.
Yes, that makes sense. I figured out how to get my BCH out today and I sold it for Bitcoin.
Nice article @clemdane
Thank you!