The rise and fall of the cryptocurrency market seem to be persistent even during the final week of 2018. The beginning of the week witnessed almost all the cryptocurrencies shooting up tremendously with double digit gains. However, disappointment bestrewed the crypto community once again when the values of digital assets dropped 2 days back. It is being noticed that all the major coins are suffering a decline rate of up to 10% in the past 24 hours.
Bitcoin Cash [BCH], which outperformed all the cryptocurrencies last week with a massive 150% hike is currently struggling to overcome the bearish hit. At the time of writing, BCH is trading at $153.24 with a market cap of $2.7 billion. The weekly statistics of the market depicts that BCH has dropped by 17.18%. Also, the cryptocurrency is currenlty the biggest loser in the 24 hour chart with a 10% loss.
The hourly chart of BCH shows an uptrend extending from $88.3 – $222.7, which is followed by a continuous downtrend ranging between $225.2 – $209.4 and $208.19 – $164.99. A resistance point is fixed at $226.4 and the support point set at $152.8 has been broken and the price contiues to dip in this timeline.
The Parabolic SAR is currently forming the dotted indicators above the candlesticks indicating a bearish sign for the cryptocurrency.
The Chaikin Money Flow [CMF] has falled steep down the zero line demonstrating that the inflow of money has severely depeleted in case of BCH.
The Awesome Oscillator is continuousy forming negative bars below the zero line on the histogram, which shows a clear support for the other indicators mentioned above.
In the daily chart of Bitcoin Cash, we can see a massive downtrend ranging between $1729.3 – $594.69 – $167.4.
The Bollinger Bands has shown a clearly bearish market since November, as the candlesticks are alligned below the moving average [MA] line. Though BCH gained its momentum in the past few weeks, the price has started to move along with the MA. The upper band and the lower band of the indicator shows a narrow path indicating a less volatile market.
The Relative Strength Index [RSI] had risen steadily from the overbought zone to stay within the RSI range, however, it is gradually moving back to the overbought zone in this timeframe.
The Relative Vigor Index [RVGI] has taken a bearih crossover with both the reading line and signal line moving downwards.
All the indicators used in this technical analysis is evidently favoring a bear market in both the timeframes. The short term indicators are showing strong support for bears in the 1 hour chart.
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BSV STN is mining 1.4-gigabyte blocks; Is this a scaling solution or a journey towards centralization?
Bitcoin SV, the fork of Bitcoin Cash, has set up an STN [Scaling Test Network], specifically intended to test on-chain scaling for large blocks, which also acts as a standard network in the latest update of Bitcoin SV. It was noted that the STN was mining blocks that were more than 1 GB in block size, a development that was celebrated in the BSV camp after a Twitter user, @two2wheel2life, tweeted,
So the #BSV test network mined 6 blocks over 1GB 👀
Two of them were 1.4GB & one of these contained 359,793 transactions! Check out https://t.co/tArDkAwpFR
Just wait until this is happening on main net! 🙂
Are you paying attention yet??#BSV is #Bitcoin #CraigisSatoshi
— Conor McGee – $two2wheel2life (@two2wheel2life) May 22, 2019
BSV has a total of four such networks defined, i.e., Mainnet, testnet, regtest, and STN. According to the website, STN was implemented to reduce the impact of scalability testing on testnet and to preserve testnet as a network for testing of applications built on top of Bitcoin SV, without requiring testnet users to make significant hardware available.
Block 11891 on the STN was 0.95 GB in size and processed a total of 9530 transactions in the block. Block 11901 was 1 GB in size, and block 11902 was 1.4 GB in size, which could possibly be the biggest block mined on the STN.
Is Bigger Better?
The question of bigger block sizes has sparked quite a few debates, be it Bitcoin, Bitcoin Cash, or Bitcoin SV. It was one of the reasons why Bitcoin Cash forked from Bitcoin and why Bitcoin SV forked from Bitcoin Cash.
However, does massive block size really solve the scaling problem without any drawbacks? The Operations Manager of STN, Brad Kristensen, had some interesting things to say to AMBCrypto about the recent achievements of the STN.
“We’re very pleased with the results, and I think it’s a strong signal of what is to come from Bitcoin SV on mainnet as we continue to increase adoption. The STN is running the same public release available right now (0.2.0). Anyone can join the STN to test their applications /services.”
According to BSV’s roadmap, the first upgrade for the project will be ‘Quasar,’ which is proposed for July 24, 2019, and will concentrate on scaling by increasing the default block size hard cap.
Centralization or scaling?
Andreas Antonopoulos, a prominent Bitcoin advocate, had a different opinion on the rise in block size for Bitcoin SV. When AMBCrypto reached out to him, he commented,
“Large blocks have a centralizing effect on mining and node operators. It is unlikely that the main BTC chain will increase the blocksize as it has taken a different path for scaling, via layer-2 payment channels (Lightning Network) and on-chain optimizations (Segwit, Schnorr etc.).”
As stated by Antonopoulos at the ‘Bitcoins in Bali’ meetup on June 27, 2017, if the block size is increased in orders of magnitude at a rate that is proportional to the increase in user base, a difficult problem will emerge wherein Bitcoin transitions from a decentralized to a centralized system.
Additionally, Antonopoulos said,
“If my block takes 11 minutes to validate, then i’m off the blockchain, which means fewer people can validate independently, which means the system becomes centralized. With which one of these increases, fewer people can participate in the validation process, fewer people can participate in storing the data, and fewer people can participate in being independent actors. We go from a system that is decentralized to a system that gradually gets more and more centralized.”
The above gives a clear idea of what could happen if the block size increases. However, Craig Wright announced in one of his Medium articles of his plans to increase the block size, giving his opinion on the same,
“The reality is that scaling on-chain is much simpler than anyone likes to admit. There is nothing special to be done in order to achieve this, it is just allowing commercial systems to compete and to remove the false idea that home use and hobby nodes need to be subsidized”
So, how will BSV fare? Will it still be successful after implementing larger blocksize or will it accept the centralization that comes with increased block sizes? Only time will tell.
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