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To me, it’s obvious that the Bitcoin Cash “hash war” has been what’s triggered the fall of the 5K support level (and to me, it’s telling that 200 messages in, n
by lhl 8y ago
To me, it’s obvious that the Bitcoin Cash “hash war” has been what’s triggered the fall of the 5K support level (and to me, it’s telling that 200 messages in, no one has really even mentioned it).
The contentious fork has been very disruptive, causing BCH trading to be halted and lowering trading volume across the board. At the same time you have a huge redeployment in mining resources, up to 4exa on the Bitcoin.com pool alone pointed to BCH to defend vs a BSV takeover attempt (along with threats of 51% attacks and long range re-.org attacks) - up to 30% of SHA-256 mining power was pulled, mining at 100-200% less profitability of BTC, which also would have had some pretty big effects on the market (potentially parties dumping BTC to fund hashrate, potentially other miner related effects).
This sort of shakiness/distraction/fud drives the whole market down, which drives more selloffs, which drives articles and discussion like this, repeat.
Now that this seems to be largely over (and exchanges are opening BCH/BSV back up) you’re actually seeing a bit of a price/volume bump after this cratering, although I think people will be skittish for a while. I think it’s right to be skeptical - the people that are building real things will keep doing so, largely under the radar, and the markets will do as the markets will.
- matthewbauer 8y agoI’ve never understood the commonly held view that miners can effect the price. The distribution of coins is on a fixed schedule it shouldn’t matter how many miners there are. Price should not change from any of that.
- millettjon 8y agoThis may be more related to rapid liquidation of holdings which does affect the short term. Long term it should average out.
- deleted 8y ago[deleted]
- dragonwriter 8y ago> The distribution of coins is on a fixed schedule No, it's not. The distribution of coins is affected in the short term by the actions of miners; it has periodic difficulty adjustments to intended to target a fixed long-term rate, but it is not a fixed schedule.
- solveit 8y agoMore important than the change in newly minted coins is the fact that the miners (in this atypical case) are selling btc for fiat to buy energy to outmine their competition.
- mywittyname 8y agoThe public is finally seeing the structural weaknesses in crypto. The sales pitches never really talk about forking or it's impact. Now it's clear, I think, to most layman investors that forking is going to result in a long-term erosion of crypto value. Each fork is dividing the value of your holdings, and most people don't have enough information to know what to do about it. Initially, they might be happy they doubled their holdings, but when the sum value of the forks don't add up to the pre-fork value, then people will eventually feel like they are getting scammed and exit.