Singapore, SINGAPORE – When there’s a fisticuff after a shouting match. Innocent bystanders tend to do what’s natural and flee the scene. Leaving only the goons to go at it till kingdom come. And that’s what has been partially attributed to the bloodbath in the market that took place yesterday. Bitcoin (BTC) took its biggest fall to date of more than 11-percent after a period of stable trading and all the major cryptocurrencies came tumbling after. Approximately US$25 billion left the market in a day.
The significant amount of funds moving the price at this low volume can precipitate a freefall of akin to halo jumping without a parachute. And most of the blame has been placed squarely on the Bitcoin Cash (BCH) clash of warring factions that has caused those on in the audience to get nauseous and back off. These mining titans are from opposing Bitcoin ABC (BCHABC) and Bitcoin SV (BCHSV) camps. The exceedingly low BCH volumes might also have nudged the dominos in the greater market.
Bitcoin cash’s combative hard fork leads to a fall in price below US$400 this past week before recovering because of an increasingly hostile hash war. Do we really care about the block size debate? Most are more concerned how long this bear market will last. And worse, will it plummet even more. The landscape that we wake up to after hibernation could be a very different one.
Post forking, BCHABC is currently in the lead supported by Roger Ver with a significantly higher price for this version of BCH. On the SV side is self-proclaimed Satoshi Nakamoto who goes by Craig Wright who only wants one strain of BCH and is willing to be diabolical in his approach to achieve Satoshi’s vision.
Wright is adamant stance that the block size should increase to 128mb and is scheming to create as much chaos as possible with mining empty blocks despite not profiting from the transaction fees through sheer hash power. Some are claiming that’s already happening but not to the extent that it will be able to cause damage to the network and exerting hegemony.
The ABC proponents are all about keeping things status quo and plugging software holes where applicable. Backed by billionaire Calvin Ayre, the SV peeps, on the other hand, are championing a more drastic revamp with CoinGeek.
Now it comes down to Jihan Wu and Bitmain and if they are still on the fence about joining the battle by reallocating his significant resources from mining BTC to join the fight against SV insurgents. The main BTC pipeline will suffer as a result. It doesn’t matter anymore which implementation to support as the block party could be destroyed with hash power that’s does not have the stench of napalm in the morning. War profiteers tried to signal for air strikes on futures and will be buying the dip once favourable intel is obtained.
It’s all about motives and incentives and like the Vietnam War, it’s not communism that they are actually fighting against. But rather the notion of choosing a side and sticking to it to the bitter end in the name of profit. Everything else including ideology is cannon folder. And we how long drawn that war was. And it will have a bearing on traders, investors, speculators and even true believers who might all experience different forms of PTSD.