Will Bitcoin Cash Be Adopted by Miners and Traders?

in #bitcoin4 years ago (edited)

For Bitcoin Cash, Its Not What You Know But Rather Who You Know...

Bitcoin Cash is a new fork of Bitcoin which will formally enter the market sometime around August 1st, 2017.

Here are some of its proposed features:

It increases the block size to 8 MB.

It removes SegWit, a code change that might activate on the bitcoin blockchain by the end of August.

What Bitcoin and BCC share...

Bitcoin and Bitcoin Cash will share the same transaction history until the point they part ways. When Bitcoin Cash splits off, essentially Bitcoin holders will also be entitled to BCC and their holdings will be found on both blockchains.

What else makes Bitcoin and BCC different?

Unlike Bitcoin, BCC will have several different implementations of its software.

Many critics of Bitcoin claim that Bitcoin Core's software is too dominant on the bitcoin network and BCC aims to solve this problem.

Meet BitcoinABC

The first software implementation has been undertaken by BitcoinABC as they have already adopted the Bitcoin Cash protocol.

Their website can be seen here: https://www.bitcoinabc.org/

Who is behind Bitcoin Cash?

The main supporter of the new BCC fork is Beijing-based mining firm ViaBTC. This mining company has control over roughly 4% of bitcoin’s computing power.

BCC's survival depends on it's hash power and whether it obtains mass adoption...

Lets look at two opposing arguments and see what can be gleaned from them:

Antagonist

Lets say they get 10% of the hashing power (That's EXTREMELY generous). It will take 10x as long to mine ONE block, until the next diff calc. Normally the difficult would adjust every 2016 blocks, which takes about 2 weeks. BUT now it takes 10x as long to mine and the adjustment would take 10x as long, or almost half a year. AND even if "cash" were to magically have the same price per coin, because it takes 10x as long, they'd be making 1/10th the amount... So, everyone would be mining at a loss for half a year... But, rest assured miners would leave VERY fast when not making a profit... AND the price of "cash" would be a tiny fraction of BTC... meaning even greater losses and even faster migration off of "cash".

Advocate

“It includes a compensatory difficulty adjustment in case the hashpower is so low that block times exceed 2 hrs. As long as such an extremely low hashpower condition persists, the chain’s difficulty will be lowered by 20% per block. So it should drop down to difficulty levels where it is mineable at even low hashpower.

This is just an emergency mechanism which we hope will not be needed, but it’s there to keep the chain alive if need be” Freetrader said.

So the question seems to be, which one makes more sense. From my experience watching the crypto market if advocates like a coin it will survive. If they see value in a cryptocurrency they will invest and based on the adoption of the community miners will decide how many resources to allocate to it.

Bitcoin Cash has a chance to become bigger than BTC

I'm not trying to argue that this will definitely happen, I'm just saying that based on the evidence there is a strong chance BCC will survive and become adopted by a large community. Who knows what value will be assigned to it but I know that I'll be watching it closely and trying to learn as much as I can about this new forked Bitcoin in the coming days, weeks and months ahead.

Please leave thoughts and comments below. Thanks for reading.

Source:

Bitcoin Cash: Why It's Forking the Blockchain And What That Means - CoinDesk

What is the Bitcoin Cash Token? - TheMerkle

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So would you be holding, selling or trading your BCC from the fork?

I think selling it before watching it trade would be a big mistake... I've seen so many charts and so many market reactions that were counter-intuitive. If you are holding BTC the BCC will come free and I do understand that selling it may be the best move (in case of a complete crash and flop) there's another way to look at it and just treat it like a unaccomplished BTC doing what many wish they had done. HODL.

I'm beginning to wonder if the price of both may drop substantially, at least initially while everyone is figuring out what the heck is going on. It may be an opportunity for a short sell.

I was looking through the recently added coins on coinmarketcap.com this morning and noticed Bitcoin Cash has been added a few days ago currently trading at about $400.00

Upvoted and RESTEEMED :]

Id deffinently want just a bill of bitcoin cash in the safe. :)

I'm thinking because its got us talking about it (any attention is good attention - Bailey) it would be wise to at least keep a bit of it around?

This post has received a 2.90 % upvote from @booster thanks to: @ldauch.

I'm gonna look into this. I reckon I'll buy some as soon as it's available. Hopefully it's assigned a smaller value so small timers can buy heaps.

There will probably be a huge selloff but then we will see if BCC has legs..

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