Friday , March 5 2021

Bitcoin: Bitka's cash crisis costs billions without final vision



Author Olga Kharif

Battle for control Bitcoin Cash station is expensive.

The fourth largest cryptocurrency this week began to focus on attention when two competing software development teams disagreed on how to best update the code and finish the division of the network. The battle was announced yesterday because it contributed to the biggest fall of eight months for Bitcoin, which Bitcoin Cash has gone since last year.

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Both fractions have strengthened the amount of computer power they have to support their software version to win the race called Nakamoto Consensus, under which one who has the most computerized support wins. Groups known as ABC and SV lose about $ 700,000 a day for costs such as electricity to run mining platforms that compete for transaction processing, according to BitMex Research. This is at the top of another $ 1 million a day because of the lost opportunity due to the non-existence of their Bitcoin computers, according to Jimmy Song, Bitcoin core developer.

Each has committed to continue to win on the so-called Hash War, where "hash" means the computer power devoted to the effort. While ABC is currently in progress, according to the Coer Dance track, the balance of power can still be shifted.

"Imagine assuming a $ 100 billion management in the company, which could be influenced by channeling your resources," said Lex Sokolin, global director of fintech's autonomous research strategy in London. "There is prestige, reputation and power that comes with the main party responsible for deciding on the vision and functions of the future of money."

The winner will be able to make changes in the software in his programs, for example in discovering how to manage coins more effectively. Other pluses include the ability to attract better developers and more miners to join their pool. Those who gain control will also have a major impact on the price associated with the coin.

"You can pump the price, you can split the price, you can press speed in any way or another," said Travis Kling, founder of the Ikigai hedge fund. According to the data on the exchange of Poloniex, the coins, Bitcoin Cash ABC and Bitcoin Cash SV together are considerably smaller than what Bitcoin Cash is worth in fork. When Bitcoin Cash left Bitcoin in August 2017, investors actually saw the prices of these two coins.

The ABC Academy runs the Bitmain Chinese cryptographic plant and investor Roger Ver, who is called Bitcoin Jesus for his early defense of the original coin. The group SV or Satoshi's Vision is led by the billionaire Calvin Ayre and Craig Wright, self-styled Satoshi Nakamoto, an anonymous creator of battle. Wright's argument has long been dubious in the community of cryptography.

During this time, the fight was expensive for investors who already saw Bitcoin Cash lost $ 2.75 billion of market value in the past week.


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