Bitcoin VS Bitcoin Cash: Operation DragonslayersteemCreated with Sketch.

in #dragonslayer7 years ago

Operation Dragonslayer


There's a conspiracy theory going around about Bitcoin (BTC) and Bitcoin Cash (BCH/BCC) that I think my fellow redditors should know about.
TLDR: In 17.5 hours BCH will try to usurp BTC as the "true" Bitcoin and this will cause BTC prices to tank to unrecoverable levels and will have side effects on alts as well since BTC is the main pair.
Technical TLDR: The conspiracy plan is that when Bitcoin locks their difficulty algorithm, a group of miners will switch to BCH in mass and pump BCH to huge levels. This will cause a panic sell of BTC and cause people to try and transfer BTC from their wallets to exchanges, but because all the miners have left and the difficulty is locked, the network will be clogged with slow and expensive transactions for the next 2 weeks, spelling the end of Bitcoin.

Longer Story
I'm going to assume most people here are fairly new to crypto and weren't around for all the politics and drama between /r/bitcoin and /r/btc
There's a lot to understand about the interplay between difficulty algorithm changes, miner reward incentives, the politics of the pools that take a while to go into.
These two articles might help catch you up:

https://www.tradingview.com/chart/BCHUSD/loBEVhic-Bitcoin-Cash-Are-You-Paying-Attention-Yet/

https://medium.com/@twobitidiot/politics-religion-and-bitcoin-cash-51c28af59f53

Two weeks ago we saw something similar when BCH exploded and BTC went all the way down to $5500. This was because BTC had a difficulty algorithm change and BCH was approximately 3-4x more profitable to mine. Only Slush kept mining BTC so we'll see if they stay true to BTC this time around too.
Right now we're seeing BTC, ETH, and most alts fall at the exact same time BCH rises. This might be bots reading the right indicators and buying/selling.
The estimated time of the difficulty algorithm changes is on the bottom of https://fork.lol/pow/retarget
Other important items to note:
Coinbase still has a bunch of BCH locked up until Jan 1
CME futures open up in December, depending on what happens in the next few days it could be more chaos as MSM and retail investors try to wrap their heads around this mess
There's always an element of "buy the rumor, sell the news" which we may be seeing right now with the run up from $1200 to $1700. But be aware, this is MASSIVE volume we're seeing for a "buy the rumor" scenario
Currently most of this volume is in Korea by a wide margin. Most speculate that this is Chinese playing on Korean exchanges after the ban, the change in volume after September is obvious
Will Thanksgiving Weekend 2017 be like Thanksgiving Weekend 2013? We'll see...

Strategies
Start moving your BTC and alts off of wallets and into the right exchanges just in case the networks get clogged and you want to be ready to make a move
Go into FIAT to avoid this drama and enter in again after this passes
Go into BCH
Put some super low limit orders on BTC in case stop orders and panic selling cause another flash crash like ETH had on GDAX
FAQ
What is the "dragon" being slain?
Some think it's Bitcoin, the biggest crypto. Other think it's a private chat group that a bunch of Core folks are in that they self-dubbed the Dragon's Den in an self-mocking fashion
Isn't this just some stupid 4chan meme?
Rational brains would agree, and chances are it really is and Jihan and gang are shaking their head in disbelief that people would believe something like this.
But $4B of volume on BCH is undeniable, and not something that a bunch of "trolls" can just conjure up.

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