Bitcoin Cash & Bitmain: Cause for Epic Pump or Epic Dump?
In light of the news that Bitmain holds an enormous amount of Bitcoin Cash, I wanted to share my own opinion about whether or not this would be good for the price of BCH.
DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.
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Based on my calculations (17.3 Million total supply of bitcoin cash and 1 million owned by bitmain) bitmain holds about 6% of total BCH supply. If the company decides to dump BCH, which I doubt, it would do it in small amounts. Otherwise they would cause a crash and wouldn’t sell for the price they would like to. At the same time crypto markets move very easily 6% each day, but that doesn’t mean 1 Million of bitcoin cash is being sold or bought, it could be only fraction for market to move that much. My conclusion is, they don’t sell since it’s an IPO and that is not a good reason to sell something that is being part of. There is a reason this company invested in Bitcoin cash along with other cryptocurency. I see it as investors being eager to invest in company like that, owning cryptocurency.
Actually they have begun to sell BCH or move it based on the address movement. When a big player moves it's crypto it is probably to sell and not to other wallets
Good video @louisthomas - I've never been a large proponent of BCH but i've come to listen more closely recently. I didn't like the co opt of the BTC name and wrote about that in my new blockchain book but Roger Ver is an Austrian and understands economics better than most. I'm not so sure the people at the helm of the BTC ship understand the Austrian Theory of Economics and this is an important distinction for me when creating and furthering a good money.
Roger is more of a Keynesian. Roger is not that great of being an Austrian. If he is-he at the very end of the scale...
After watching your you tube video, I searched a bit about bitmain. It’s actually mining hardware company owned by Jihan Wu. The IPO will be listed on Hong Kong Stock Exchange by the end of August. Yes, bitmain claims to over 1 million BCH and over 22,000 BTC among other coins such as Dash, Ethereum and Litecoin, EOS and he is invested in other blockchain projects such as digital currency payment platforms, exchanges, digital wallets,... The company is already valued at 14bil and it’s still not listed yet. With that said, I believe that investors are not valuing the company only for it’s hardware department, they see in Jihan Wu enormous profits potential in the future and I can tell Jihan Wu is all about blockchain. If he had liquidated his BCH holdings, which he obviously believes in, he would have lost potential of future profits, which wouldn’t make investors too happy. There is a reason bitmain holds that much BCH which is part of bitmain and at the same time part of IPO.
BTW: sorry for your delay, travel safe!
Actually they have begun to sell BCH or move it based on the address movement. When a big player moves it's crypto it is probably to sell and not to other wallets
@louisthomas I understand the pressure to sell from investors, which is generally a negative when done en masse with their huge stake
Also the fact that they're basically holding so much BTC to sorta validate the 22000 Bitcoin they have will likely cause long term problems
Not one to get into the whole BTC vs BCH debate, but what I will say a company like Bitmain having consolidated so much power in the crypto space which was specifically designed to reduce the power of large corporations is a negative.
While holding 6% of total supply may seem large, I don’t think it is a big issue as they have not shown the intent to sell it off. In fact, it shows they are willing to actual hold it which mean they think it is undervalued at this point. Although it could suggest selling pressure in the future, it may find the demand for selling these coins in the future at higher prices. Although I prefer Litecoin for payments, I have found myself using Bitcoin Cash for buying STEEM since I am holding Litecoin for the long term.
Actually they have begun to sell BCH or move it based on the address movement. When a big player moves it's crypto it is probably to sell and not to other wallets
First i hope you take a smooth flight, about bch i think they have interesting ideas about their blockchain but their team it's no so solid in my opinion. Regards
I have find info about bitmain after the video. Bitmain hold 6% of toatl BCH supply. Markets move very easily 6% each day up or down. As my information Bitmain controls nearly 51 percent of the Bitcoin mining. And Bitmain has attained approximately 42 percent control of the Bitcoin network hashrate. Both BTC and BCH share the same algorithm, and thus the same mining gear can be used to mine either, but one at a time.
Bitmain controls nearly 51 percent of the Bitcoin mining hashrate according to the latest hashrate distribution figures. Bitmain’s mining pools continue to dominate the network hashrate.
That might be old news: they have less than 40-45% officially now
https://steemit.com/bitcoin/@sames/has-bitcoin-become-more-decentralized