Bitcoin Cash Will Slay Legacy Bitcoin?!

The crypto world seems to have gone COMPLETELY INSANE in the 48 hours following the cancellation of the Bitcoin Segwit 2x fork. Big players in the crypto world are out on the street corners, proselytizing their favorite alts and alternative to Bitcoin, namely Bitcoin Cash, saying that Legacy Bitcoin is DOOMED! It’s the end of Bitcoin as we know it! The scaling issues WILL NEVER be solved they say! Markets are abandoning Bitcoin, because it’s fees are too high and the Core team are in league with Illuminati Alien Reptilians (that’s my interpretation of their smears anyway). Bitcoin Cash is the new Bitcoin, with it’s “lightning-fast” transfers and low fees! In six months we will call Bitcoin Cash simply...Bitcoin!

So what’s my take on all of this? In a word...bullshit. The proponents of Bitcoin Cash are out to make money and promote their own coin, and the all out attacks on Bitcoin Core are marketing. It’s fairly simple. The Bitcoin Core development team have devoted many years of their life to legacy Bitcoin, and they are some of the smartest people in the game. Bitcoin Cash by comparison has been around...two months? Do you really believe that the big whales who have become multi-millionaires, and the mega-miners who have become rich beyond their wildest dreams are about to abandon Bitcoin because some whiny cry-babies didn’t get their community disrupting, ill-thought out and poorly written B2X fork? Absolutely not. In fact, all the idiots who are selling off their BTC because of all this smear news and are diving into BCH because they believe the hype that it’s the new god-send are making the aforementioned whales and miners extremely happy. They’re lapping up all those bitcoins as quickly as the newbies are selling them, increasing their BTC portfolio greedily. Smart money is taking advantage of dumb money, and you’re simply putting Bitcoins into more secure hands. People who respect Bitcoin Core, and their own private keys.

Just for funsies, let’s look over the hype news and examine what people are saying, and do a little breakdown reality check.

Let’s start with Coin Telegraph.

1. Bitcoin Cash Shining Admist Crypto Bloodbath by Jacob J

This article summarizes the dispute over block size. He quotes a tweet by Vinny Lingham (South African investor and founder of Civic) commenting on the move to Bitcoin Cash by those who supported the block size increase. He talks about the difference between the block size camps. The “small blockers” feel that maintaining small blocks is vital to keeping the currency decentralized, because as the blocks get larger and larger, it becomes exponentially more difficult for small-scale miners to get in on the game. In real life terms, this means that only corporate entities with access to lots of capital will be able to afford and profit from mining. This centralizes the currency explicitly, putting the power in the hands of a few, which most feel is antithetical to bitcoin’s purpose. The large block camps detest the slow speed and high fees of the current small block size, and say that WE MUST HAVE A SOLUTION NOW! They look to Bitcoin Cash, which just jumped the gun up to 8 MB block size, resulting in (for now) fast transfers and low fees.

He finishes by praising how BCH went from zero to 16 billion dollars in market cap in three months. He claims this like this is all the work of BCH, and how such a spike must mean it’s great.

REALITY CHECK!

The reality of the situation is that Bitcoin Cash was created and promoted by big money interests that want to centralize the power of mining. Interests like Jihan Wu, co-founder of Bitmain, who has been running around promoting his concept of Bitcoin Unlimited, which would basically allow the miners to determine what block size to use, couldn’t get consensus, supported the Segwit 2x, and after two failures is now jumping on the BCH band-wagon. Why? Because he makes his living off of mining...Bitmain is the largest seller of mining equipment on the planet. Jihan Wu maintains AntPool, which has the largest hashrate of all mining pools, at about 16.4%. Big block sizes like 8 MB, as is used by BCH, will soon only be able to be mined by large pools like AntPool. I wonder why he supports this?

I don’t have more information on the developers. Why? BECAUSE BITCOIN CASH’S WEBSITE DOESN’T LIST THEM! It gives a two sentence blurb about how there isn’t just one development team, but multiple, and how this is vital to decentralization. Ok...how about linking to your developers? Or these multiple development teams? I mean...linked in, wikipedia...fake web site? Anything?! Good god, you go to any two-bit scam ICO and they’ve got a full development page that would make you believe you’re buying into the next Google or Facebook, and these people can’t even link one?

Now I didn’t mean the above sentences as a slam against Jihan Wu. I like Jihan, he’s smart, I think he wants whats best for Bitcoin users. However, it would be bereft of my duty to not point out that he has a financial incentive to promote a blockchain that would increase his wealth and future monopoly on mining, which a large block blockchain would do. Qui bono, you must ask.

Getting back to the telegraph article...as for the exultations about how fast BCH’s market cap sky-rocketed...that’s just not accurate. Go to coinmarketcap.com and take a gander at BCH’s market cap history. It shot up to 6 billion on...guess when? The day it was listed on exchanges for the first time, a day after it’s implementation on Aug. 1st. Do you guess where that six billion came from? It couldn’t have been the valuation of Bitcoin...which gave all holders of Bitcoin “free” Bitcoin Cash at the time of the soft fork. Do you understand? The moment Bitcoin Cash was created, it’s value was derived off of Bitcoin. That’s where it’s initial market cap came from. It didn’t go from 0 to 16 billion. It went from zero before it was released, to six billion the second it was on exchanges...because the value of Bitcoin had already given it unearned value. It was Bitcoin’s slogging through the trenches since 2009 that BCH came in and usurped value off of, not Bitcoin Cash’s value in and of itself.

Now looking closer at the BCH market cap, it spiked immediately to ten billion. This is indicative of a HUGE pump, as all the hype men “to the moon!!!”ed it ad nauseum. Just look at what happened immediately after, ten hours after it hit the exchanges, around noon on August 2nd, it spiked to ten billion. Then by August 6th it had dumped down to about three and a half. We all know what this was, a massive pump and dump. Smart money making big big money off of dumb money. This is why you shouldn’t buy into ANYTHING that you haven’t done your due diligence on. Rather, we have a ton of n00bs in the market who just follow telegram channels, and mis-leading posts on the interwebs and buy what they’re told to buy, when they’re told to buy, without understanding the larger picture, or the intentions of those who are promulgating these messages.

There was a two day massive run up in market cap from the 17th to the 19th from a little under 5 billion to almost 15, a fairly quick correction in less than a day to under 10, and then a gradual slow slope down until roughtly the very end of October, when it began to rise slowly...slowly...then as soon as news of B2X’s cancellation hit, it skyrocketed, as we’re seeing now. Yes, this is a lot of the big money that supported 2X running to Bitcoin Cash. Please remember though, these are miners who are trying to take advantage of the most profitable blockchain available to them. Their care about your personal monetary sovereignty (the whole point of Crypto IMO) or your profits are very secondary to their desire for personal profits. There’s nothing wrong with that. Everyone wants a bigger paycheck. You just have to see the bigger picture for what it truly is before you go running around like a wind-up toy buying and selling and LOSING MONEY OVER AND OVER AGAIN because you have no clue which way the winds are blowing or why.

On to the next article…

Bitcoin: The End of an Era

This article...is so egregious I don’t even know where to start. It’s assertion is that core developers of Bitcoin think they have “won the battle” but a silent majority of Bitcoin holders and miners will silently slip out the back door, dumping their coins in favor of Bitcoin Cash. Here’s a quote from the article.

“Under the SegWit2x split scenario, I don’t think it would have been possible for anyone to agree which was the “real” Bitcoin chain anymore. Large companies like Coinbase had agreed to support both chains. The 2MB chain planned to launch with no replay protection for users, which would have caused massive confusion and loss of funds. As the first clean fork of Bitcoin, with a clear plan and goal of being business-friendly, I expected Bitcoin Cash to be a big winner. The price of Bitcoin Cash has gone up nearly 100% in the past two weeks with many investors speculating on a “Cashening.””

I mean...could you suck off Bitcoin Cash any harder? Seriously, I didn’t realize I was reading an ad article for Bitcoin Cash. This kind of garbage should be in a pop-up.

Ok...first off, no one was confused about what was the “real” Bitcoin. Anyone who knew anything knew how terrible the B2X implementation was. It was a direct frontal assault on the Bitcion core network cooked up by only ONE former Core developer, Jeff Garzik, who’s pretty much a washed-up dev that the Core team kicked down the road. The other signatories of the New York Agreement (a closed door, no invitation private meeting) on that cancellation blurb that was put out I’ll get to in a later article. Suffice it to say...they’re all the ones diving into Bitcoin Cash now. The same people who were directly trying to start a hard fork without replay protection, intentionally take advantage of uninformed investors and newbie bitcoin holders, be secretive and misleading in their information outputs, and engaging in massive smear campaigns against the Bitcoin Core team (WHO ARE THE ONES WHO HAVE DEVOTED THEIR LIFE TO MAKING BITCOIN THE WONDER IT IS TODAY) are the same ones spreading all this fake news about Bitcoin Cash over-taking Bitcoin. It’s propaganda people. It’s people with a financial incentive to deceive and mislead unaware investors telling you to buy something that will profit them, not you in the long run. That will put the mining power monopolized into their hands, not yours. To undercut in a cloak-and-dagger fashion the Core team, who are the smartest people around coding Bitcoin.

The author of the article continues in his deception, providing a clip of Joseph Poon, the developer of Bitcoin’s Lightning Network (which is a long thought out, well developed, open information program of increasing Bitcon’s transactions speeds and lowering fees exponentially) and ascribing this comment to him in a light he didn’t mean it in.
“When a party starts to suck, you leave. You can try to fix it, but the cleanest solution is to just get out… A lot of Blockchain is increasing the freedom for individuals, and part of that is having the flexibility to leave, and to make the choices that you want to, at any point in time.”

Wow...sounds like he’s hating on Bitcoin since the cancellation of the 2X fork eh? Wrong. Go watch the video he ripped this quote from. Now go back a couple minutes and get the context that he’s saying this phrase in. It has NOTHING to do with the 2X fork, or his personal opinion of Bitcoin at all. He’s speaking at Stanford about bitcoin scaling, and talking about a hypothetical situation involving advanced blockchain applications.

Let’s just compare quickly, the two kinds of people I see cropping up in this debate. On one hand you have people like the NYA signatories. Big money people, who have a track record of deceit and misleading information and lack of transparency, jumping to whatever ship they can make a buck on. Then you have people like Joseph Poon, a brilliant developer who is doing what he does for the love of coding and a genuine desire to make the Bitcoin ecosystem better. He’s not doing it for money. He’s still hard at work on developing the Lightning Network. If this article’s author was correct, he would be jumping on the Cash Cow. He’s not, he’s probably sitting in front of his computer right now, coding, shaking his head at the stupidity of these charlatans.

Now the next paragraph I actually agree with. It’s about the reality of hedge fund investors or big time Wall Street investors getting into crypto in a big way. I’ll touch on this later.

My final thoughts on this article are about the author. Wait...that is my final thoughts WOULD be on the article’s author...if Coin Telegraph had published who the author was. That’s right, this is an anonymous article from the blank-faced icon of “Guest Author.” You would think with vehement views like this, the author would put out who the heck he was wouldn’t you? I mean, I’m taking pretty controversial stances in this article, and my personal information (at least who I am) are right there at the top of the page. Heck, PM me and I’ll give my email to you (maybe...depends on how you ask me =/). This anonymous praising of Bitcoin Cash is very suspicious to me, and as I’ve shown, his information is spurious at best.

So in the final analysis, I would point you to this analysis of Bitcoin Cash over at CoinDesk. The price-point analysis shows that this coin is overbought (on hype) and that a correction is coming. Now this is from earlier in the day, and you can see that he was right, the price of BCH is currently around the $1027 mark he pointed out. However, a correction is coming. I personally do think that BCH is going to see a further rise, as it currently is more convenient for transactions and marketplaces then BTC (gasp! He said it!). If we see support for BCH around $6-700 we could see another bull run up as more buy in to use it for it’s convenience in the short term. However, after larger adoption of SegWit, and implementation of the Lightning Network, BTC will be just as competitive if not more so.

Bitcoin is a storage of wealth coin, and that’s not going to go away. Bitcoin has been facing competition from altcoins for YEARS, and yet “this time it’s different.” It’s not. Bitcoin Cash has found a niche for transactions, and making payments. That’s great, use it for that. It does seem like a better application than BTC at the moment in that regard. However, that’s not why most people who are into Bitcoin are into Bitcoin. Yeah, sure it’s cool that you can use Bitcoin to buy stuff online, but that’s not why we’re in it. We BELIEVE in Bitcoin, and the future it offers. Monetary sovereignty, a currency that no bank, or government, or hacker can take away from you unless you don’t know what you’re doing and expose your private keys. It’s MY money, and I have complete control over it. There’s also the belief that as it becomes adopted more and more world wide, failing fiat currencies wealth will slosh around looking for somewhere safe to store itself, and the best bet for it is in cryptos. When the vast amount of fiat wealth surges into Bitcoin, we expect to see our BTC values rise well beyond the 100,000 range. If not exponentially higher. So yes, Bitcoin Cash is cute and neat right now, and if you’re looking to make a few quick bucks by all means don’t let me stop you.

I mean, I’m holding the BCH I got from the fork, and I’ve enjoyed watching my portfolio expand over the last few days. I’m not doing anything with it, just chilling, waiting to see where the market goes. I’m also holding onto my BTC, just chilling, waiting for the next few years to pass and bring what they may. I also trade alt-coins, because I like accumulating more BTC.

But that’s what this is about...why are you in crypto? Do you believe in what your investing in? Do you know who the developers are who made your currency, your blockchain, your system of wealth? Do you have faith in what your investing in, in what Bitcoin means, in what it stands for? Or are you out to make a quick buck? Don’t get me wrong, it’s cool to make some quick bucks. Hell, that’s why I trade, but I also know what I believe in, and why, and that’s why I’m holding my BTC, and that’s why I believe in the future of BTC.

Viva la BTC!

Author’s Note: I am not a financial advisor. None of this is meant to be taken as legal or investment advice. Please do your own due diligence before investing any money into anything. I could be completely wrong about everything I just wrote. I am only human, and we routinely get things wrong so I’ve heard. You can have a perfect system, or you can have humans in the system, and once you get those jerks coming around…

Please comment down below and tell me what you think about what I’ve written about. Where do you think Bitcoin and Bitcoin Cash are going? Will BCH overcome BTC? Is this just a flash in the pan hype pump? Tell me what you think! And please, if you found this material insightful or inspiring, up vote me and support my work!

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