Bitcoin the Collapse! Why? [featuring Saifer87]

First there was Bitcoin, the most famous cryptocurrency in the world. On 1 August 2017 Bitcoin Cash arrived, a virtual currency born from a change to the Bitcoin protocol. Since November 15, Bitcoin Cash has done two: from a fork (a variant to the previous protocol) of Bitcoin Cash were born Bitcoin ABC and Bitcoin SV (which stands for Satoshi’s Vision). Two chains born from two different philosophies of two distinct groups, ready to wage war to inherit the role of “true” Bitcoin Cash. And now there are three Bitcoin coins on the market.On the one hand there are those who support Bitcoin Abc because it is the least invasive fork and with minimal changes compared to the previous one; for this reason, it is considered the probable “heir” of Bitcoin Cash. For Bitcoin Sv, however, the change is substantial . An extremely important difference because it is the reason why the larger Bitcoin Cash miners are supporting this second variant.

“Bigger blocks favor bigger miners; the little ones are not able to undermine them ”

Among the great miners, however, there is one exception, far from irrelevant: Bitmain’s biggest Bitcoin miner in the world is on the side of Bitcoin Abc.“In reality, Bitmain mostly beats Bitcoin and not Bitcoin Cash; has a huge hash power on Bitcoin (the hash power, or hash rate is the measure that indicates the processing capacity of the virtual coin network and the amount of energy that the network consumes to generate blocks of the chain and also indicates the capacity of a miner to undermine virtual coins.Higher the hash power, the greater the ability to undermine.Ed.). If things go wrong, however, has already anticipated that it will bring its huge hash power on Bitcoin Abc. In doing so, it would immediately make it the dominant chain “

A two-protocol system for Bitcoin Cash, however, is not sustainable: one of the two is destined to prevail over the other. And the selection mechanism is very simple: it will depend on which chain will have more blocks.

One of the virtual currency specialists Marco Cavicchioli said that neither of the two variants of Bitcoin Cash really makes any sense; the various fork of Bitcoin, at some point “will end up imploding”. “It is useless to create a copy of Bitcoin: Bitcoin is there and it works,” says Cavicchioli, referring to the biggest feature of Bitcoin, namely the decentralization of the network. A feature that Bitcoin Cash does not have and that means that few groups can make very important decisions.

“If you create a copy and it is inferior, for example because it is not decentralized, how do you think it can survive? Good money drives bad money. If you create a bad version of Bitcoin, your coin will eventually be cast out. It takes time, however, for this to happen. In the long run Bitcoin will go on its way and Bitcoin Cash will become a lower currency “is its prediction.

The weight of Bitcoin unbalances the market. Burned 100 billion dollars

That Bitcoin is the big virtual currency has also shown the fact that Wednesday, November 14, the uncertainties related to the fate of Bitcoin Cash and its fork has brought down the value of Bitcoin. And not only the latter: also Litecoin and Ethereum, for example, have lost billions of dollars.Bitcoin, however, came from a period of great stability, which seemed to have left in the past the incredible volatility that has always distinguished it. What happened, in short?A market that remains very busy. The addition of the Bitcoin Cash forks will still cause a bit of torment in the next few days and maybe even in the next few weeks, until it becomes clear what the successor of Bitcoin Cash will be between ABC and SV. Only time will tell.

Img: Pixabay

Saifer link