The Rise Of Bitcoin Cash (Bcash) - Showing Strength Or Just A Pathetic Attempt To Stay Alive?

The crypto market is recovering over the last days and Bitcoin Cash (Bcash) was outperforming the other large caps. Bcash almost doubled within a few days while most other crypto’s only saw some moderate gains. A new pump (and dump) underway? I think so!

I think it is just a pathetic attempt to rescue Bcash from dying

Bcash saw some typical pump and dump spikes in it’s history. I followed these events closely and they were all done in the same setup. They combined an occurring event with a marketing campaign on mainstream media and paid shills on social media to tell how bad BTC is and how good BCH. Furthermore, BTC was dumped and BCH was pumped. In the previous pumps BTC was heavily spammed, but that might be too expensive now with higher Segwit adoption and exchanges batching. Furthermore Bitmain is losing it’s monopoly position, so they have to behave better to maintain market share.

The rise is based on hype, there are no supporting fundamentals

The price of Bcash almost doubled in the last few days, but I can hardly find any fundamentals to explain it. The upcoming hardfork or the social media platform Memo could be the reason. However, the hardfork will increase the block size from 8 to 32 Mb, while they hardly get 100 KB in a block. This means the hardfork will not add anything useful, but it will bring additional risk.

Memo, a social media platform based on Bcash seems to be extremely ugly and will never be able to compete with Steemit on the payout system. I didn't hear anyone being exiting about it and think that it will only be used by Bcash freaks who use it because it is on Bcash and to add some transactions to the empty blockchain.

The most likely reasons for the pump

I think the pump is mostly because of Bcash proponents dumping BTC and pumping BCH while the market is just turning bullish. Beside that I suspect that they are pushing it extra through the following methods:

Shilling for Bcash on mainstream and social media

Bcash buy advice on CNBC

Brian Kelly of CNBC gave a buy advice of Bcash exactly before the price started to rise. This could be a perfect call, but the history suggests that CNBC was earlier involved in a pump and dump scheme of Bcash as you can read in THIS article. It seems to be the case that the marketing manager of CNBC is the wife of executive director of the Bitcoin Cash fund and organizer of the Bcash meetup in London.

A perfect call or did he know something?

Roger Lightning demonstration and scaling debate

On Youtube a video was going around where someone demonstrate to Roger how LN works and the payment fails. Since then on r/btc posts are circulating that LN has failed and doesn't work. Since LN is still in Beta and brand new it is certainly possible that a transaction fails, that doesn't mean that the network failed. Anyway, I suspect that Roger has set it up.

Let’s tell the world one week before the pump that LN doesn't work….

The reason that I don’t trust Roger is that he also organized a scaling debate on Anarchapulco (sponsored by bitcoin,com) and the presentator of the debate was introduced as ‘neutral’. After a few minutes till the end of the debate Roger and the ‘neutral’ guy were bashing BTC and worshipping BCH, this was certainly set up.

Scaling debate sponsored by Bitcoin,com, what do you expect?

But there is more, in a recent scaling debate with Simon Dixon (HERE my article) Roger wanted to demonstrate that the fees are cheaper with Bcash and let a line of people send BTC and BCH to each other from the first to the last in line. Except from the fact that they used his Bitcoin,com wallet that is optimized for Bcash (fee estimation), there is something else I don't trust: The experiment failed because someone had already BTC in his wallet.

Really? The wallet doesn't show a transaction history that allows you to see exactly how much he received in the last transaction and thus how much he had to forward? Is it maybe the case that the outcome was not satisfactory to Roger because the fees on BTC are one Satoshi per Byte at the moment?

Debate start at around 57 minutes

Antpool is burning Bcash to support the price

Mining pool Antpool is burning Bcash by sending earned fees to a black hol address. They say IN THEIR OWN ANNOUNCEMENT that they do it to give revenue back to the users, but off course it is to manipulate the price because they are the biggest holders and mining gives them revenue, so they want to keep Bcash alive and support the pump.

Antpool is burning Bcash to support the price

Chinese miners are now manipulating the price up by burning tokens and they are very able to manipulate the price down using their huge holdings (as described HERE). This means the Bcash price is controlled by central planners at the moment, was it not the VISION OF SATOSHI to get rid of central planners?

Hilarious, the Bcash price is decided by central planners, obviously Satoshi’s vision LOL.

Road ahead is empty……..

This song is very relevant for the Bcash blockchain. At the moment they have an 8 lane road, but only traffic to fill up 10% of one lane. Soon they will build another 24 lanes and pray for more traffic to use the road. Maybe people just don’t need Bcash, we have Litecoin for years, Bitcoin transactions are cheap again and Lightning is being rolled out as we speak. Ever thought about that? Maybe it is better to build something useful instead of extra lanes.

A big road is only useful when someone actually use it. LOL

Even in a hyped periode blocks are as good as empty…..

Conclusion

The Bcash price is driving purely on hype and coordinated pumps to keep this coin alive. Till now in the short history of Bcash every pump ended with a dump, and I expect this to happen this time again. With the two previous pumps (and dumps) they used the flawed EDA, Coinbase support and the Segwit 2x cancelation, so they were relatively successful. This time I doubt if they have a matching event to give the pump extra support, probably this time is more an attempt to rescue Bcash from dying.

I would say: Dump Bcash if they pump but don’t pump after they dump, because it could be the last time……..

Disclaimer
This is no financial advice, just my view on the market.

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