Pump & Dump or Bitcoin takeover? Why the Bcash miners won't win this one.
Match of the night: 11/11/2017
Bitcoin cash is more scalable in the short term. Its fees are 10x lower. Its network is faster.
Why not use Bcash?
Centralisation of mining power and money. Its goes against the community.
From reddit:
One problem: The miners are slitting their own throats. Destroying the investments of hundreds of thousands of Bitcoin users will create an army of embittered opponents who are used to evangelizing and (thanks to the scaling wars) fighting against centralized opponents.
So the miners wind up with most all the BCH and pump it to high prices while BTC gets slaughtered. Then what? Are we all going to become slaves and lackeys of Fake Satoshi, Jihan Wu and Bitcoin Judas? Not likely.
Investors will be running scared from the crypto space. With additional BCH entering the market (either held in reserve in case it rose, or from Xapo/GBTC/Coinbase/etc.) their price will start sliding. Core will finally do a PoW change, and no need to wait since there's no longer any qualms about bricking malicious miners' equipment.
Bitcoin slowly gets a rebirth - I won't pretend it will be easy. But it will have development that we can relentlessly point to, while the relatively small band of Bitcoin Cash users runs out of buyers for overpriced BCH and the coin begins retracing. It won't be long before they are panic selling. If Jihan Wu wants to wind up owning 100% of it, he can be my guest. Let him find buyers for his crap coin then while he goes bankrupt mining it.
Keep in mind that Bitcoin Cash is objectively the worst coin in the top 100 cryptocurrencies. Dogecoin has it beat on fees and speed after all. It doesn't have smart contracts, it doesn't have anonymity. It's a rollback from the optimizations and bug fixes Core has been steadily introducing. At some point reality will set in, so just hang in there.
I think Bitcoin has held up quite well so far. I'm getting used to these wild swings. This might destroy Bitcoin Cash, who is going to want it if this is just a pump and dump?
This is what concerns me - that the attack is real and possible:
If BCH hits .7BTC or so, it won't be profitable for any miners to mine BTC, even after the 400% difficulty adjustment for BCH tomorrow, and even accounting for transaction fees.
If tomorrow sees a repeat of what happened today, BTC is dead by the end of next week.
I don't see any way that everyone will just switch over from BTC to BCH. It isn't like people switching from Myspace to Facebook, there's lots of money involved and people aren't going to just sit back and watch everything they've put into BTC go up in smoke. It could happen but if it does, cryptocurrency will probably be dead as well. Everyone that has built up BTC wont want to risk the same thing happening again. So I think it's extremely unlikely that BTC will be dead by the end of next week.
To give one example: Roger Ver stepped over from BTC to BCH, sold more than 10.000 BTC. Lots of people in China and Korea buy into BCH and were shorting Bitcoin last night.
I think it is still extremely unlikely, and yes users and businesses won't just step over. Also Bitcoin has always found a way out of a nasty situation. Even after Mtgx when Bitcoin when from $1200 to $200 dollar, it recovered.
But seeing the network disfunctional for two weeks until difficulty adjusts won't be fun though.
I don't really like shorting. Most people lose their money doing it, especially with something like Bitcoin that has gone up so much this year. Roger Ver is quite a controversial person as well, if you look at his history. He doesn't always get it right, like when he tried to reassure people about Mt.Gox not long before it collapsed. He learned Japanese while in prison, an interesting person but I think he's made a mistake with Bitcoin Cash.
Dash is jumping in the battle today
Every day a new pump & dump yay ;)