Bitcoin Cash waiting to pounce?
Recent newcomers to Bitcoin may know nothing of the sordid history between Bitcoin Core and Bitcoin Cash...
In mid-November, Bitcoin was attacked. Bitcoin Cash proponents pumped a massive quantity of funds into rival currency Bitcoin Cash whilst the Bitcoin mempool was over-loaded with spam attacks of tiny transactions, bogging down the blockchain. Major miners of Bitcoin switched to mining Bitcoin Cash - a coordinated attack designed to reduce hash power and further bog down Bitcoin, while boosting Bitcoin Cash.
Bitcoin Cash prices rocketed skywards while Bitcoin prices dropped dramatically. Investors who feared missing out on huge gains jumped on the Bitcoin Cash rush and sold out of Bitcoin and into Bitcoin Cash. Many feared it was the "flippening" - the day Bitcoin Cash would become Bitcoin.
And then prices dumped. The value of Bitcoin Cash fell, nearly instantly, by around half of its peak value. It was a clear, deliberate, dictionary definition of a pump and dump, on the largest scale ever in cryptocurrency.
It was close. It nearly was the "flippening". Some suggest a sudden shutdown of the Korean exchange, Bithumb, where most of the activity was taking place, saved Bitcoin from plummeting further. Some say it was a crash caused by uncontrollable factors... others aren't so sure. Of course, now we can see that Bitcoin came back after this incident stronger and in higher demand than ever.
Bitcoin Cash has held steady at around 10% or so of the value of Bitcoin, give or take a few points. At the time of the attack, it was closer to 25% of Bitcoin's value. In recent days, with futures opening, Bitcoin has been pulling away from Bitcoin Cash. Now, Roger Ver, or "Bitcoin Jesus", makes an announcement.
He's "really really concerned" about Bitcoin. He's worried that it isn't as good as the product he backs - Bitcoin Cash. Hmm.
I don't know about you, but if my competitor is inferior to me, it doesn't make me feel concerned.
Coinbase, the now tremendously popular app for buying and selling Bitcoin, will be releasing Bitcoin Cash to all traders who held Bitcoin Core on August 1 of 2017. They will be releasing these funds to many, many traders in January, 2018.
Is it a coincidence that a day after Bitcoin futures launch, and at a time that Coinbase is taking in around a million new accounts a week, within weeks of adding a large volume of liquidity to Bitcoin Cash, that Roger Ver announces he's "concerned" about Bitcoin?
What will happen when this newly available liquidity in Bitcoin Cash becomes available in January? How many traders will sell their Bitcoin Cash for other currencies? I would think the threat to Roger Ver is that January might bring about a sort of clearance sale for all of this locked up Bitcoin Cash.
Expect to hear more about Bitcoin Cash in the news over the next couple weeks as Ver and his associates try to draw attention away from Bitcoin and sow doubt and confusion in recent buyers' minds.
And don't be surprised to see another attack soon, too.
image source:
https://www.cnbc.com/2017/12/11/bitcoin-jesus-is-really-really-concerned-about-the-future-of-the-digital-currency.html
https://steemitimages.com
the part that you forgot to mention was that it was a coordinated attack - at the same time, some of the major mining pools also abandoned bitcoin and mined bitcoin cash instead. so not only was the mempool flooded, but the hash rate was also down considerably.
luckly the remaining hash rate was enough to pull us through
It actually prompted me to offload all of my bitcoin at the time (into VTC). I saw a vulnerability and the risk that it would all go to shit because of a bit of greed and politics was too real to me.
Thanks for the comment -- I edited it into the article.
Yes, it was clearly malicious and greedy behaviour that hurt a lot of investors.
np. i also edited my comment to add something as well (last paragraph)
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