On Thursday night, Bitcoin Cash launched a hard fork that split
the network of the fourth largest cryptocurrency into at least two competing
versions, Bitcoin Cash ABC Fork (
BCHABC ) and Bitcoin Cash SV ( BCHSV). The Bitcoin Cash network was updated
shortly after 7 pm French time. Channels BCHABC and BCHSV appeared at block
556767.
At the writing of this article, 12 blocks had been mined
according to the ABC rules by the Bitcoin.com and BTC .com pools , while the SV
chain had 8 new blocks. Following this hard fork , BCHABC - whose updated client activated the features
of Bitcoin Cash's official roadmap - seemed to have taken a significant lead.
Nearly 3/4 of the nodes used ABC software , while only 8% opted for SV software
.
On the price side, BCHABC also held the rope. Its futures (Bitcoin Cash ABC Fork) traded on
Thursday night to $ 316 , up 25% over the last 24 hours. At the same time, the
price of BCHSV was only $ 79, and the asset had depreciated by 54% over the
same period. Note also that a large part
of the platforms that support the BCH have previously indicated that they
intend, eventually , to reference the BCHABC under the term Bitcoin Cash, using
the symbol BCH .
However, the camp BCHSV
- supported notably by Craig Wright and by billionaire Calvin Ayre - seemed to control a majority of hashing
power (about 75%) in the hours leading up to the fork. Some of its members have
indicated that they could use this lever to lead an attack against BCHABC .
They could undermine empty blocks in order to complicate transaction processing
by the network, and lead its users to join the BCHSV group . Bitcoin.com, owned
by Roger Ver - who supports Bitcoin ABC - has attempted to replicate shortly
before the fork , deciding to move much of the hash power from its mining pool
to the BCHABC channel.
Cryptocurrency: a bloodbath for Bitcoin
The main cryptocurrencies have plummeted, accelerating their
decline for 24 hours. The Bitcoin gives up nearly 11% on a day according
Coinmarketcap, back to 5665 $. The queen's decline of 'cryptos' is 13% over one
week. The XRP corrected for its part of 9% on a day and 10% on a week. The
Ethereum posted an even more disappointing performance, yielding 13% over 24
hours and 16% over seven days. The Bitcoin Cash collapsed by 12% in one day and
25% in seven days! The other altcoins are not spared, with falls ranging from
17% to 19% over a week, for Monero, Cardano, Litecoin or EOS.
Bitcoin at 13 months low
For example, Bitcoin , the benchmark for digital currencies,
slumped below $ 6,000, dropping to a 13-month low. We must go back to October
2017 to find such levels on the 'mother of cryptos'. As is often the case,
there is no single, obvious explanation for this purge on digital currencies.
Capitalization of less than 100 billion
The capitalization of Bitcoin is ironed under $ 100 billion
today, at $ 98 billion according to Coinmarketcap, against $ 18.5 billion for
the XRP of the firm Ripple , which is now fighting the cryptocurrency second
place with the Ethereum and its $ 18.4 billion 'capi'. Bitcoin Cash only weighs
around $ 8 billion, the Stellar $ 4.4 billion and the EOS $ 4.1 billion. The
Bitcoin was not dropped below the $ 6,000 since August. It had steadily
stabilized, showing reduced volatility, unlike other, more dynamic, cut-offs,
keeping their wild fluctuations. The period of tranquility seems to be over for
the BTC, which even seems to have triggered this last downward trend on
'cryptos'. According to Bloomberg, this is the sharpest correction of Bitcoin
since February.
For Michael Terpin, a partner at Alphabit, quoted by Bloomberg,
the market is trying to find a floor. Thus, this specialist highlights the
technical aspect of the recent decline. People who do graphical analysis look
at the historical patterns, and they note that there is one last final
capitulation to get the last people out of the market, says the expert. Recall
that Bitcoin had reached in December 2017 a historic peak of nearly $ 20,000,
before collapsing in the following months.
It loses about 70% of its value
since these summits. Fears about increased regulation, those concerning the fragility
of different platforms in the sector, or recurring debates on the legitimacy of
these crypto-assets, were right of what was then a real speculative bubble. The
latest sectoral news concerns the 'split' of Bitcoin Cash. Two software
versions will compete tomorrow to become the dominant channel, says Bloomberg
about the 'BCH'. According to the agency, some 'miners' could switch from
bitcoin mining to mining Bitcoin Cash, to support a particular version. Also
read about bitcoin abc price.
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