Bitcoin Cash network sees an increasing amount of Unknown mining pools.

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Over the last couple of weeks, the Bitcoin Cash network has recorded an increasing number of unknown mining pools who sign their coinbase transactions with the name of Satoshi Nakamoto.

Source: coin.dance

Two possible scenarios

Experts believe that behind these miners may be supporters of the cryptocurrency Bitcoin SV. They might be trying to profit from BSV price increase. Experts point out that the main advantage for them is to withdraw funds from BCH to BSV. This will lower the Bitcoin Cash price and increase Bitcoin SV’s price.

According to another version, the miner’s activity may be due to an attempt to discredit blockchain Bitcoin Cash through reorganization attacks. Not so long ago the Bitcoin SV blockchain experienced a reorganization. Back then, disproportionately large block sizes caused the problem.

Hashrate wars

However, experts do not rule out the fact that the new computing power belongs to the Bitcoin Cash camp itself. They claim that it might be a security measure to protect the network from the so-called hashrate wars.

Currently, “Other mining pools” control 37% of the Bitcoin Cash network which is the largest share of the whole network. BTC.com comes second with 21,2%

Source: coin.dance

Additionally, in March, ChainDD announced that 74.48% of the bitcoin network hashrate is controlled by six alternating pools, half of which are directly or indirectly controlled by the Chinese company Bitmain. 

Source:

https://kripto.media/nezinama-mainera-aktivitates-del-pieaug-bitcoin-cash-tikla-hashrate/?fbclid=IwAR0OjUZUD1BE69cAcpTm_z3KGBM1_rXwGwR6Z_tx79Pdm6YZm_UCsSOlUfI
https://cash.coin.dance/blocks

The next morning after the BCH fork

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Yesterday, November 15, 2018, the Bitcoin Cash network had a hard fork. As a result, now the chain has split up in two different coins, as expected, BCHABC and BCHSV. The fork occurred at block 556,766. 

The fork got postponed.

The fork was expected to happen at 16:40 UTC, but it got delayed and occurred several hours later. Twitter and social media sites were blowing up because of this event. Everyone had an opinion and wanted to share it with the world.

The world was watching.

There were a series of live streams on Youtube. Tone Vays hosted one where the top BTC supporters gathered to talk about what’s happening. Giacomo Zucco, Willy Woo, David Silver, Charlie Lee, Nick Core, Francis Pouliot, Ven Zen, and many many more popular Bitcoin defendant figures were just a small part of the video.

There was another video on CoinSpice channel, where similarly, a lot of Bitcoin Cash supporters gathered along to wait for the fork to happen collectively. Vitalik Buterin and Roger Ver joined them as well. Both of those videos turned out to be longer than seven hours.

That would have been a regular fork if both leaders of both camps hadn’t engaged in a severe hash-war. It was almost like following a sports game of some sort. It was something the crypto-space had never experienced before. Such media coverage and unknown outcomes had never rustled with cryptocurrencies.

Conclusions

You can check the technicalities and specification on both forks in our previous articles about the fork itself, and one where Roger Ver comments on it.

It all got so far that the supporter behind Bitcoin Cash SV, Craig S. Wright, started vowing that he would destroy the Bitcoin Cash ABC network. Although just minutes before the fork took place, it looked like Bitcoin Cash SV had the most hash-rate support, it turned out to be in favor of Bitcoin Cash ABC. As a result, BCHABC had a significant lead over the BCHSV hash-rate. Approximately 75% of all BCH nodes were running the ABC network, while only 8% were supporting the SV network. Consequently, the Bitcoin Cash hash-rate war winner is Bitcoin Cash ABC. Some exchanges have already clarified that soon they will replace the BCH ticker with BCHABC, thus making Bitcoin Cash Bitcoin Cash ABC.

As for Bitcoin Cash SV, it looks like mining at a loss will not be an option and they will switch to a different network.

At the time of writing judging by the statistics of Coin Market Cap, BCHABC is trading at $287,41 with a +3% gain, whereas BCHSV is trading at $112.73 with a -29.85% downtrend occurring.

BCHABC chart on CoinMarketCap
BCHSV chart on CoinMarketCap

Both are being traded on Poloniex, Bitfinex and HitBTC. Available pairs are BCHABC/BTC(Poloniex, HitBTC); BAB/USD(Bitfinex); BAB/BTC(Bitfinex); BCHABC/USDC(Poloniex), and BCHSV/BTC(Poloniex, HitBTC); BCHSV/USDC(Poloniex); BSV/USD(Bitfinex); BSV/BTC (Bitfinex).

Source:

https://goo.gl/FpY5Tf
https://goo.gl/Wg4ze1

Photo by rawpixel.com from Pexels.

EXCLUSIVE! Roger Ver on the upcoming Bitcoin Cash fork!

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Recently we did an article on the upcoming BCH fork, which is due to happen on 15th November. Since the event has a lot of uncertainty revolving around it, we decided to contact the head of Bitcoin Cash – Roger Ver, to ask him a few questions. 

Bitcoin Unlimited

We asked Roger about the third proposal by Bitcoin Unlimited, called BUIP908, which anticipates combining both – BitcoinABC (BABC) and BitcoinSV (BSV) proposals. We wanted to know why that is a third option, and whether Bitcoin Cash with Roger Ver would approve the outcome of that scenario. To which Roger replied very shortly, that Bitcoin.com is a very big fan of Bitcoin Unlimited (BU). “We have been running their software long before Bitcoin Cash was created,” he said replying to our e-mail.

This answer kind of leads to thinking that Bitcoin Cash along with Roger would approve the outcome of the third proposal by BU. However, this thought complicates the whole situation even more. That makes us think that Roger doesn’t want to work with Craig S. Wright anymore. He would much rather shake hands with BU than BSV. We wouldn’t either after receiving such an e-mail.

Smart Contracts

Next, we wanted to know what were the significant changes the BCH users are going to witness if Bitcoin ABC proposal goes through. To which Roger Ver (also, very shortly) answered that it’s the new ability to make smart contracts using Oracles. An oracle is a data feed – provided by third-party service – designed for use in smart contracts on the blockchain. This “seems like a major new use case thanks to opcode DSV,” explained Roger Ver.

Miner support

So of course, we had to ask the classic question – what would be the worst case scenario for this hard fork? Roger replied very purely to this question, saying that:

“The entire thing breaking and everything going to zero is always the worst case scenario.”

That seems to be a very general answer as you could apply that to any cryptocurrency in the game. However, this is very concerning as many talks revolve around the lack of miner support for either BitcoinSV and BitcoinUnlimited.

The fact is that currently if we’re judging by the statistics of CoinDance, Bitcoin SV holds 57,1% of the Bitcoin Cash hash rate. Which is surprisingly down by 18,6% since yesterday November 12, referring to a tweet by @WhalePanda. That is a tremendous decline in just a day! Makes you think how much more can it drop before the hard fork? That means that miners are moving from BSV supported mining pools and switching to different ones. For example, yesterday in WhalePanda’s tweet Coingeek had 32.64% of hash rate, but today it only has 23,7%. That is a very significant amount of miners fleeing their mining pool. Also, the percentage of “other mining pools” have increased by almost five percent. Yesterday it was 2,78%, and today it has risen to 7%. Could this mean that miners are coming to a consensus on which chain they are willing to mine?

This BCH fork has generated much attention as it is exciting to see how it is going to escalate with so many possible outcomes.

For more information Roger Ver referred to his recent video, he did on Youtube, reading the Craig S. Wright e-mail and talking about the upcoming fork.

Thanks to Roger Ver for finding time for our questions, even though this didn’t clarify something we already knew, but led to more speculation on the possible outcome. 

Source:

https://goo.gl/uCHxqy
https://goo.gl/27zok4
https://goo.gl/sr75ug
https://goo.gl/E4BrSs

Photo taken from Wikimedia Commons

Everything you need to know about the upcoming BCH hard fork

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Bitcoin Cash (BCH) is probably one of the most controversial altcoins in the market. At the moment it’s the 4th biggest cryptocurrency with a market cap of $10 billion. 

Recently BCH has experienced a slight uptrend resulting in a bit more than 50% price increase. It went from $411 to almost $633 in a matter of five days. Now it’s pulling back a little, but still, the price increase is pretty significant.

That all could be because BCH is planning to hard fork on November 15th, 2018. The fork is the result of the lack of consensus between the supporters and developers of BCH. The BCH community has divided into two groups/camps. One side (Bitcoin ABC) is Roger Ver and Bitmain. On the other (Bitcoin SV) is Craig S. Wright and nChain. 

Camp Nr.1

Bitcoin ABC, which is headed by Amaury Sechet, published a proposal for the network changes. They are willing to improve the BCH scripting language, which would enable new features. They want to include oracles and cross-chain atomic contracts in the script. Also, canonical transaction ordering plans to be implemented, which is a “technical building block that lays the foundation for massive scaling improvements in the future.” Essentially, this means that Bitcoin ABC, Bitmain and Roger Ver wants to improve the BCH script so that it can be more programmable and flexible.

Camp Nr.2

The fun starts when a week later, Craig S. Wright and nChain, which is a blockchain software development company, published a Satoshi’s Vision (SV) paper. CoinGeek supports SV.

Basically, they answered Bitcoin ABC with their own proposal, which suggests raising the block size limit from 32mb to 128mb. This proposal is called Bitcoin SV.

The third proposal.

However, there is another proposal from Bitcoin Unlimited, which is the second largest Bitcoin Cash implementation. Their proposal is called BUIP908, which combines the two propositions mentioned above, but requires miners to switch to the Bitcoin Unlimited client. You can read a more detailed technological break-down in their blog post. They explain that they tried to compromise with the two camps, but with no results. Each side of the argument believed that their proposal is best without any willingness to settle this evenly.

“I can only sadly conclude that this is again about power and ego not about technical merit and end-user adoption,” says Andrew Stone, the lead developer in Bitcoin Unlimited.

The summary

It is very rare to see a break in community’s consensus this shattered. That has resulted in a lot of confused BCH users, as the outcome of this fork is so unpredictable. There are two possible outcomes to this story. First, the BCH fork splits into two different chains, and the users receive a new token. Second, there could be no split because the second chain could lack miner support.

Major cryptocurrency exchanges such as Binance and Coinbase have confirmed support for the upcoming fork. Both of the exchanges clarify that they will be suspending BCH deposits and withdrawals couple of hours before the fork on November 15. However, Ledger Nano S has announced that they will completely discontinue the support for BCH until “there is clarity as to which fork comes out dominant.”

It is advised to keep your BCH holdings in a private wallet to ensure that your funds are safe and that you would get an equivalent amount of coins after the fork. If you keep your BCH funds within an exchange, it would be best to move those holdings to an exchange which supports the awaited fork. 

Source:

https://goo.gl/cM1xsm
https://goo.gl/bScVuq
https://goo.gl/uNnkBA
https://goo.gl/bYMCdn
https://goo.gl/kdyiV4
https://goo.gl/sNVtwU

Photo by Pexels.com

Bitmain filed for an IPO in Hong Kong.

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On Wednesday, the worlds largest cryptocurrency mining manufacturer Bitmain, filed for an IPO to list in Hong Kong. 

In the past year, Bitmain has seen remarkable growth mostly because of the whole crypto market booming at that time. Crypto mining was popular and the equipment cost a lot. And it shows up in the numbers provided by Bitmain as well. In the past year Bitmains’ profits were around $1,4 billion and the whole revenue was around $5.1 billion, which most likely all came from selling mining rigs for cryptocurrency.

Now when the markets are plummeting, the picture does not look that great at all. Mining is becoming a luxury only for wealthy enough individuals and the new mining hardware is outperforming the previous ones. It is rumored that Bitmain still has $900 million worth of unsold mining gear in June, which at the moment, if held any longer, could become useless. At the moment, AntminerS9-Hydro is sold for $719.

If not speaking about all the FUD that Bitmain has received because of purchasing 1 million Bitcoin Cash (BCH) coins for Bitcoin (BTC), but if we rather look at the situation as a whole – Bitmains’ next years profits aren’t looking that bright anymore. Because the company is mostly dependent on the crypto market prices. Specifically Bitcoin price, because Bitcoin kind of sets the mood for the whole market. So if the market keeps plummeting, then cryptocurrency mining slows down as well. Bitmains’ revenue decreases as well, because they hold their profits in cryptocurrencies. And if this keeps going on for a while, Bitmain might be on the path of closing their business.

As mentioned above, Bitmains’ business model is mostly dependent on cryptocurrency market prices. But if we see a completely different scenario, and the market turns 180 degrees, and starts rocketing towards new all time highs – then the Bitmain business will see its second breath of a new life.

So if asked whether to invest in this IPO, the answer would be rather no than yes, because this year has been hard for crypto markets, and the near future doesn’t look like is going to change fast, because there are major regulations and ETF approvals to come which both could change the pace of crypto markets.

At the same time – Bitmain hasn’t specified anything on their upcoming IPO, neither the price nor on how much they are planning on raising.

Source:

https://goo.gl/uTp8T2

Photo by Canva.com

The second Japanese crypto exchange hacked this year!

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Yesterday, September 19th, one of the largest Japanese crypto exchanges Zaif was hacked, reports PRTimes in Japan. The hack started already on September 14th, when the exchange noticed an unusual outflow of funds on the platform around 17:00 PM, Japan time, after which the company halted the deposit and withdraw functions. 

Zaif is being operated by Tech Bureau and they explained that had investigated that the hackers had stolen around $60 million in BTC, BCH and MONA with unauthorized access to the exchange’s cold wallets. The exact amount of BCH still remain unknown.

The good thing is that Zaif had its own asset reserve of around $20 million, and they have made an agreement with a Japan company called Fisco to receive a $44.5 million investment in exchange for a large share of ownership. It looks like the users’ funds are going to be returned and are safe.

Tech Bureau said that they have already filed the hack to local authorities for further investigation.

Japans financial watchdog – Financial Services Agency (FSA), has launched a wide range of inspections over native crypto exchanges about their security measures.

And interestingly enough, Tech Bureau had already been warned by the FSA in March, on improving its security and anti-money laundering measures.

Japan had experienced another large hack this year in January. A company called Coincheck reported that an impressive amount of $520 million in NEM tokens had been stolen.

These kind of hacks happen pretty often in the crypto ecosystem, and by now, no-one is protected unless the exchanges are properly regulated and secured by governing instances. It would be highly recommended to stick with the most popular crypto exchanges, and not to trade in the low volume ones. It might seem tempting as the lower class exchanges are offering more tokens and coins with small volume, with the option on arbitraging some assets. But if you highly value your investments and assets then we recommend to avoid these low class exchanges.

Source:

https://goo.gl/F3LKQR
https://goo.gl/g3PzWC

BCH miner’s choice

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Two major cryptocurrency companies called “CoinGeek” and “nChain Group” just announced a “Miner’s Choice” initiative for BCH miners. This basically means that they are making two major software changes. 

The first would be removing the “dust limit” which, by their words “will ignite growth of Bitcoin Cash usage”. This means that we could make a transaction worth only 1 satoshi and that it becomes easier to implement colored coin solutions and tokens on Bitcoin Cash, becoming the alternative of Ethereum ERC-20 protocol. 

The other major change is – accept some free transactions in each block the miners mine. This means that that they want to eliminate the standard requirement of 1 satoshi per byte. nChain’s mining firms “will each designate a number of free transactions they will accept in each mined block”. 

As good as all this ”power to the miners” movement sounds, will this initiative cover the mining costs for miners? This question gets thrown around twitter a-lot. Some tweeters are exaggerating about a negative fee implementation, just for the laugh of it. 

But in general the responsiveness of this message is pretty weak. I think it’s because BCH has corrupted the Bitcoin name in the past by taking over Bitcoin’s twitter page, web page and other media channels, strongly imposing that BCH is “the real bitcoin”, basically using those platforms to promote their BCH fork. And these actions has caused a lot of doubt and reluctance against Bitcoin Cash in the cryptocurrency community. No wonder it’s “street” name is Bcash.

Source:

http://ejuz.lv/jwn
http://ejuz.lv/jwo

Bitmains’ IPO and BCH (Bitcoin Cash) scandal

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Recently Bitmain, the worlds cryptocurrency mining giant, announced that they will be having an IPO (Initial Public Offering). This could be the worlds biggest IPO seen this far, since it is rumored to to hold around of $14 billion.

That’s all nice and dandy, but there are some hidden gems in this story. First, the CSO of Blockstream, Samson Mow tweeted an image of what appeared to be a leaked version of the Bitmain investors deck. It revealed that Bitmain had sold around 70% of their bitcoin holdings into alomst 1 million BCH coins. He writes:

“According to the Bitmain pre-IPO investor deck, they sold most of their #Bitcoin for #Bcash. At $900/BCH, they’ve bled half a billion in the last 3 months. If Bitcoin Core devs didn’t disclose the Bcash vulnerability, it could’ve wiped a billion dollars off their balance sheets.”

Next he highlighted that Bitmain had published only the Q1 numbers and claimed that Bitmain might be hiding the Q2 results, because they are a disaster.

“Why is Bitmain raising capital so fast & only showing Q1 results to pre-IPO investors? We’re well into Q3 now. The reason is Q2 was a disaster. Bitmain is sitting on a massive $1.24 billion USD in inventory & S9 prices dropped by ~85%! Q2 losses range in the $600-700 millions”, he writes in his tweet.

So why Bitmain sold almost all of its Bitcoin holdings? Some are speculating that it was done to pump the price of BCH. Another claim is that they were afraid of the Bitcoins’ Lightning Network which would decrease the miners profits, which resulted in the BCH fork. They also were behind the Bitcoin 2X fork, which failed.

As Vijay Boyapati (@real_vijay) writes in his twitter thread – “The creation of BCash was based on the fear that if Bitcoin were to scale using second layer technologies (such as Lightning Network), Bitmain’s profits through mining fees might dwindle”, adding that “Bitmain is sitting on paper losses of hundreds of millions of dollars from this botched trade. But even worse, they have no ability to exit their billion dollar position in BCash without a complete collapse in its price.”

All this sounds very cheeky to me, because the company (Bitmain) is obviously trying to save their unsuccessful trade positions. Which is understandable, from a mining monopoly point of view. Bitmain nearly holds 51% of total Bitcoin hashrate and mining services and products are their main business field.

But the thing that frustrates me the most about this issue is that Bitmain could be behind the massive propaganda movement what is going on between BCH supporters since I can remember it – Bitcoin Cash is the real Bitcoin. Now it makes more sense from the Bitmain point of view. And if it is true, then Bitmain is executing a really aggressive marketing strategy which affects the newcomers in the crypto-industry by spreading lies to the community. But the worst thing might be that with this action they are putting two crypto communities against each other. And all that is done because of greed.

I hope that none of this is true and just a bad speculation of coincidences, because this could affect the crypto-industry in a really bad way.

Source:

https://goo.gl/DBFHyS
https://goo.gl/UfJ1tF
https://goo.gl/BafEKn
https://goo.gl/zTq1RQ
https://goo.gl/yJXu3Z
https://goo.gl/HaH3sT

BCH miner’s choice

If you like what you read, feel free to share it:

Two major cryptocurrency companies called “CoinGeek” and “nChain Group” just announced a “Miner’s Choice” initiative for BCH miners. This basically means that they are making two major software changes.

The first would be removing the “dust limit” which, by their words “will ignite growth of Bitcoin Cash usage”. This means that we could make a transaction worth only 1 satoshi and that it becomes easier to implement colored coin solutions and tokens on Bitcoin Cash, becoming the alternative of Ethereum ERC-20 protocol. 

The other major change is – accept some free transactions in each block the miners mine. This means that that they want to eliminate the standard requirement of 1 satoshi per byte. nChain’s mining firms “will each designate a number of free transactions they will accept in each mined block”. 

As good as all this ”power to the miners” movement sounds, will this initiative cover the mining costs for miners? This question gets thrown around twitter a-lot. Some tweeters are exaggerating about a negative fee implementation, just for the laugh of it. 

But in general the responsiveness of this message is pretty weak. I think it’s because BCH has corrupted the Bitcoin name in the past by taking over Bitcoin’s twitter page, web page and other media channels, strongly imposing that BCH is “the real bitcoin”, basically using those platforms to promote their BCH fork. And these actions has caused a lot of doubt and reluctance against Bitcoin Cash in the cryptocurrency community. No wonder it’s “street” name is Bcash.

Source:

http://ejuz.lv/jwn
http://ejuz.lv/jwo

Written by: 

Jānis Rijnieks­