“BITCOIN CASH NOW BITCOIN”.
This comment by the head of the Chinese mining pool Lee Ang Canoe Pool could have gotten lost among other insignificant reasoning, if not for the events against which it was posted.
These events can be described as the greatest movement of capital in the cryptocurrency market. After hitting the $ 800 mark this Friday, Bitcoin Cash, the alternative cryptocurrency that forked the bitcoin blockchain in August, has continued to rise, and has more than doubled over the past 24 hours, rising above $ 2,400, according to Coinmarketcap..
At the same time, the capitalization of Bitcoin Cash exceeded $ 30 billion, which allowed it to displace Ethereum from the second line in the list of the largest cryptocurrencies..
As expected, at a certain moment the selling pressure began to prevail over the buying pressure, and the rate went down. The peak was reached around 0.5 BTC. Although the growth rate is still 80% over the past 24 hours, and about 400% over the past week, it should be noted that in the last hour the BCH rate fell by about $ 1000 before settling at $ 1500..
It is noteworthy that along with this, Coinmarketcap for some reason excluded from the listing the data of the Bithumb exchange, which accounted for about 40% of trading during the pump and on which the cryptocurrency itself is still traded more expensive than the market average.
Recall that these events unfold after the sudden decision of a group of companies and mining pools to abandon the plan to change the rules in the bitcoin blockchain. New York Agreement signatories intend to hard fork Segwit2x to increase block sizes and throughput of the bitcoin blockchain.
While Bitcoin developers saw this decision as a victory, miners and entrepreneurs said that the cancellation of Segwit2x will force them to turn to other blockchains that are more in line with their ideas and ideals. CoinDesk found out what representatives of the cryptocurrency industry think about this.
Although at the time of the first comments it was not entirely clear which cryptocurrency will be able to attract all these resources, recent market movements suggest that Bitcoin Cash could become this cryptocurrency..
This is evidenced by the placement of the hash rate of bitcoin miners. According to Fork.lol, at approximately 7:30 Moscow time this Sunday, the total amount of hash power allocated by miners to secure the Bitcoin Cash blockchain exceeded the amount of hash power in the bitcoin network..
Commenting on this distribution of miners’ power, Jiang Zhuoer, founder of the BTC. Top mining pool, noted that “2x fans” are moving money and computing resources to the Bitcoin Cash network.
“BTC will die,” he said
Haipo Yang, CEO of ViaBTC mining pool, has a similar perspective and says that companies and investors move their money between chains..
“I think more and more bitcoin holders are starting to understand what bitcoin is real,” he said..
Jake Smith, head of Bitcoin.com, a cryptocurrency portal owned by big block proponent Roger Ver, argues that capital movements are not just a desire to capitalize on speculative mania. According to Smith, along with the growth of the Bitcoin Cash rate, its attractiveness to users will grow. As the computing power of miners moves, the time for confirming transactions and commissions in the Bitcoin network will increase, which will not leave an ordinary user a choice.
And while Bitcoin Cash supporters have plunged into euphoria, cryptocurrency opponents are skeptical about the latest developments..
So, for Jack Liao, CEO of Hong Kong-based mining firm LightningASIC, the idea that an increase in the Bitcoin Cash rate may reflect an increase in interest in cryptocurrency seems “absolutely shitty”.
Liao is the developer of the Bitcoin Gold cryptocurrency, which is due to launch today. In addition, he has long criticized mining companies, in particular Bitmain, one of the largest sellers of mining equipment and operator of several mining pools. In his opinion, Bitmain and other companies are manipulating the market to raise Bitcoin Cash in the eyes of users..
The same opinion is shared by the largest OTC trader in China, Jao Dong, who draws attention to the fact that Bitmain and Ver were the organizers of the New York agreement, and now have put their resources in a different direction..
“They have money, they have hash power, they have everything to pump up the Bitcoin Cash rate,” he said..
Willie Wu, one of the top traders of 2017 according to CoinDesk, believes that the movements of the Bitcoin Cash market are definitely worth watching. In his opinion, unlike other alternative cryptocurrencies that lack competitive advantages, Bitcoin Cash has a more thoughtful structure..
“There is a lot of money behind it in China, which controls the price and maintains the network. If you buy Bitcoin Cash, you are betting that China will want to see it as the leading cryptocurrency, ”he said..
Bobby Lee, CEO of the mining pool and BTCC exchange operator, responded in a similar way. Long-time supporter of the idea of increasing block sizes, Lee sees the rapid rise in Bitcoin Cash as a side effect of recent decisions. While he admits that it is not yet clear if the current Bitcoin Cash rally represents anything other than market speculation, Lee notes that he will be monitoring developments in this market in the future..
Like others, he pays attention to the drop in the hash rate on the bitcoin network. In his opinion, the amount of computing power is one of the defining characteristics of a cryptocurrency..
“If BTC hashpower continues to fall, I think BTC will have a problem in the long run,” he said..
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