Opinion: Craig Wright’s associated mining pools, namely Coingeek, SVPool, and BMGPool [nChain], have collectively taken over control of over 70% of the Bitcoin Cash [BCH] network. This presents an interesting, yet risky setup in the general hashrate distribution of the BCH blockchain, and gives Faketoshi, who has been called out as being a fraud and even crazy on many instances, complete control of the BCH blockchain until the chain split.
However, this comes along with news of Bitmain reportedly deploying more than 90,000 new miners to the Xinjiang region of China, which is set to increase their miner count from an existing 120,000 to almost 200,000. This would effectively stop the competition in their tracks, thus creating a situation that has recently been branded a “hash war”.
However, in this new age “war”, it is Bitmain that makes the weapons required to fight the war itself. Even as the company is struggling with a lot of BCH as an asset which cannot be liquidated without a loss to the entire market, it has managed to rustle up more hashpower and effectively take control of the BCH chain.
Currently, Coingeek has found over 43.75% during the last day, SVPool has over 18%, with nChain’s BMG Pool at 9.03%. This has led many to believe that the entire hashrate of the BSV side has been deployed, with the battle to be decided by third-party mining pools. This is where the situation develops further.
Jiang Zhuoer, the founder of BTC.TOP, a mining pool which accounts for about 10% of Bitcoin’s hashrate, stated:
“Bitmain can call BTC’s computing power for BCH computing power, so the computing power is more than CSW. CSW must have a financial advantage and a stronger will to burn money in order to win.”
Similarly, the founder of ViaBTC, Haipo Yang has also previously declared support for Bitmain and Bitcoin ABC. The ABC chain has a lot of support financially as it is said to be the implementation that many of the exchange platforms have decided to support, owing to the fact that many platforms already do support the implementation.
Even after accumulating so much hashpower, it might prove difficult for the Bitcoin SV chain to 51% attack the ABC implementation and claim the BCH ticker symbol for themselves. However, with the threat of Bitmain’s equipment hanging over their heads, it seems difficult to believe that they will be able to hold onto their dominance. A source familiar with the matter in China stated:
“Half of its marketing staff have gone to Xinjiang to talk with local mining operators about deploying equipment. A single [AntPool] mining farm should host over 5,000 machines,”
The Bitcoin ABC implementation has gained support in implementation by Binance, Coinbase, and OKEx, while others such as Poloniex, HitBTC and BitFinex vowing to support both the coins.
The ABC side of the BCH camp is set on not changing the basic structure of the BCH protocol, referring to it as “sound”. However, they are focused on improving 0-confirmation transactions to make the coin usable as money, improving fungibility and enabling scaling through the removal of mempool admittance code.
However, Coingeek and Faketoshi’s implementation is designed to increase the block size of BCH from 32MB to 128MB, designed to increase the scalability of the BCH chain. They stated:
“Because miners should drive the roadmap in the Bitcoin space, CoinGeek and other miners asked nChain to create a professionally-driven implementation of the Bitcoin full node software (for use on BCH) that restores the original Bitcoin protocol.”
Wright has been vocal against his opposition, stating that Bitmain, ABC and Roger Ver will utilize the BCH chain for criminal purposes and child pornography. Jihan Wu has also not held back, calling CSW a Blockstream spy and a fraud.
Craig Wright has also stated:
“And, no you ABSOLUTE cuck. Bitcoin IS not even close to a soy boy commitee. It is all use hard assed buggers bending you over to show you the light. It is capitalism. Enjoy”
However, at this point, utilizing the BCH blockchain will put the power in the hands of Calvin Ayre and Faketoshi Wright, as they easily control over 50% of the chain. An interesting issue seems to be brewing.
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Bitcoin Cash would be a perfect global coin for daily spending, claims Chainblock’s Federico Pecoraro
Federico Pecoraro, CEO of Italy-based crypto-company, Chainblock, made waves in the cryptospace after he suggested that Italians were shifting to cryptocurrencies owing to the country’s growing economic problems. The 2008 financial crisis hit the Italian economy badly, largely due to the huge public debt accumulated after years of excessive public spending.
According to Federico Pecoraro, the state of affairs offers an opportunity for many people and businesses to benefit from using decentralized money. In what is the most newsworthy bit of his take, he said that Bitcoin Cash (BCH) could be the cryptocurrency that would fit perfectly as a real global coin for daily spending, despite the fact that Bitcoin (BTC) is more likely to emerge as a better store-of-value. He added,
“We’re proud to support it on our products. Indeed, our clients have the opportunity to buy BCH through any of our services.”
Pecoraro also spoke about how Chainblock used the crypto-winter to develop new products and expand its customer base. He revealed that by the end of 2018, Chainblock recorded a 156% increase in transactions and a 144% increase in new users. Federico Pecoraro told Bitcoin.com,
“We love small businesses that want to accept crypto payments but we want to enable as many merchants as we can with a strategic market approach. Our goal is to provide affordable and scalable solutions for both big and small shops and spread real cryptocurrency mass adoption. We plan to enable 5,000 merchants to accept Bitcoin payments.”
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