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Bitcoin SV Flips Bitcoin Cash (BCH) Amidst Market Rout

Bitcoin Cash (BCH), Bitcoin SV (BSV), Cryptocurrency–In a turn of events that could have ramifications for the broader market, Bitcoin SV, the fork of Bitcoin Cash that ultimately conceded the name to split currency Bitcoin ABC, has overtaken its rival to claim the fifth largest spot by capitalization.

While every crypto in the top 20, including the number one currency Bitcoin is experiencing double digit losses on the day, Bitcoin SV has managed to climb over 28 percent. The most recent price movement for the coin has led to a “flippening” in investor expectations and market valuation, with SV leaping ahead of its competitor in what has been a contentious split. As previously reported by EWN, the Bitcoin Cash hard fork, which resulted in rival currencies Bitcoin ABC and SV, instigated a “hash war” that nearly destroyed the entire the industry in the fallout.

The two competing forks, led by their respective mining pools and representatives, waged a hash rate war to decide which currency would be most deserving of receiving the original mantle of Bitcoin Cash and carrying on the coin’s branding. On Nov. 23, after two weeks of back and forth banter and plummeting crypto prices, the team behind SV capitulated to their competing rival, and conceded the title of Bitcoin Cash. Speaking at the time, billionaire SV representative Calvin Ayre claimed that his community was prepared to move forward from the conflict created with Bitcoin ABC, and that the mining group and investors “no longer [wanted] the name Bitcoin Cash”–a move that is being proven prescient with the precipitous drop in BCH value as SV continues to climb.

Ayre continued in an interview with Coingeek,

“We have a clearly defined path and this is now ready for implementation. Our definition of winning is SV existing, which was not what ABC wanted, and we are already moving on to grow the ecosystem.”

At the time it seemed like the move meant Bitcoin SV was destined to join the likes of other high profile coins relegated to obscurity (with BCH being a rare exception as a fork of the original Bitcoin), such as Bitcoin Gold, Bitcoin Diamond and Litecoin Cash. Indeed, the price of Bitcoin SV followed suite initially, with the value of the coin slipping relative to the market. But this week SV made a significant turn, and on Dec. 6 was the only coin to post green in a sea of deepening red.

While it’s unlikely that SV will challenge the market capitalization of Bitcoin (BTC) anytime soon, with the original cryptocurrency commanding $58 billion to SV’s $1.9 billion, BSV does a realistic chance of flipping Stellar in the next 24 hours if the trend continues. Following a brief reprieve of falling prices, as Bitcoin climbed above $4000 to reach a relative high in the $4300 range, the last two days have renewed the bearish trend, with prices now hitting their lowest point of the year.

For BSV investors and those savvy enough to purchase Bitcoin Cash ahead of the fork, the recent price movement is a welcome sight as cryptocurrency continues to plummet. However, the coin was not without its controversies leading to this point, including a number of members within cryptocurrency pointing the finger at the vitriol surrounding the BCH fork which kicked off November’s severe decrease in market valuation.

The post Bitcoin SV Flips Bitcoin Cash (BCH) Amidst Market Rout appeared first on Ethereum World News.

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Bitcoin SV Flips Bitcoin Cash (BCH) Amidst Market Rout

Bitcoin Cash (BCH), Bitcoin SV (BSV), Cryptocurrency–In a turn of events that could have ramifications for the broader market, Bitcoin SV, the fork of Bitcoin Cash that ultimately conceded the name to split currency Bitcoin ABC, has overtaken its rival to claim the fifth largest spot by capitalization.

While every crypto in the top 20, including the number one currency Bitcoin is experiencing double digit losses on the day, Bitcoin SV has managed to climb over 28 percent. The most recent price movement for the coin has led to a “flippening” in investor expectations and market valuation, with SV leaping ahead of its competitor in what has been a contentious split. As previously reported by EWN, the Bitcoin Cash hard fork, which resulted in rival currencies Bitcoin ABC and SV, instigated a “hash war” that nearly destroyed the entire the industry in the fallout.

The two competing forks, led by their respective mining pools and representatives, waged a hash rate war to decide which currency would be most deserving of receiving the original mantle of Bitcoin Cash and carrying on the coin’s branding. On Nov. 23, after two weeks of back and forth banter and plummeting crypto prices, the team behind SV capitulated to their competing rival, and conceded the title of Bitcoin Cash. Speaking at the time, billionaire SV representative Calvin Ayre claimed that his community was prepared to move forward from the conflict created with Bitcoin ABC, and that the mining group and investors “no longer [wanted] the name Bitcoin Cash”–a move that is being proven prescient with the precipitous drop in BCH value as SV continues to climb.

Ayre continued in an interview with Coingeek,

“We have a clearly defined path and this is now ready for implementation. Our definition of winning is SV existing, which was not what ABC wanted, and we are already moving on to grow the ecosystem.”

At the time it seemed like the move meant Bitcoin SV was destined to join the likes of other high profile coins relegated to obscurity (with BCH being a rare exception as a fork of the original Bitcoin), such as Bitcoin Gold, Bitcoin Diamond and Litecoin Cash. Indeed, the price of Bitcoin SV followed suite initially, with the value of the coin slipping relative to the market. But this week SV made a significant turn, and on Dec. 6 was the only coin to post green in a sea of deepening red.

While it’s unlikely that SV will challenge the market capitalization of Bitcoin (BTC) anytime soon, with the original cryptocurrency commanding $58 billion to SV’s $1.9 billion, BSV does a realistic chance of flipping Stellar in the next 24 hours if the trend continues. Following a brief reprieve of falling prices, as Bitcoin climbed above $4000 to reach a relative high in the $4300 range, the last two days have renewed the bearish trend, with prices now hitting their lowest point of the year.

For BSV investors and those savvy enough to purchase Bitcoin Cash ahead of the fork, the recent price movement is a welcome sight as cryptocurrency continues to plummet. However, the coin was not without its controversies leading to this point, including a number of members within cryptocurrency pointing the finger at the vitriol surrounding the BCH fork which kicked off November’s severe decrease in market valuation.

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Rumor: Bitmain Financials Indicate $740 Million In Q3 Losses Excluding Cost of Bitcoin Cash (BCH) Hash War

Since the hard fork of Bitcoin Cash that resulted in the ABC camp claiming the ticker for BCH, the value of the digital asset has dropped from around $500 on the day before the event (November 14th) to current levels of $115. This is a drop in value of 77% in a period of less than a month. Some crypto enthusiasts and analysts have concluded that BCH has entered what is known as a Downward Spiral. This has been explained as the situation where it might not be profitable to mine the digital asset.

Recap of Hash Wars

The Bitcoin Cash hash wars involved two camps. There was Craig Wright who supported the Satoshi Vision upgrade of BCH or simply BSV. Then there was Roger Ver and Jihan Wu (CEO of Bitmain) who were for the ABC version of the coin’s upgrade.

Bitmain Rumored to Have Made $740 Million In Loses in Q3, 2018

According to the Bitcoinist, unconfirmed leaked information indicate that Bitmain has lost $740 Million in Q3 of 2018 excluding the costs to financing the Hash Wars. The Bitcoinist cites a twitter account with the username of @BTCKING555 who revealed the information as follows.

We got leak of Bitmain Q3 numbers! COMPLETE DISASTER. The company lost $740 Million including losses on inventory and bitcoin cash! And this is not accounting for hash war costs! #bitmainipo @HKEXGroup

The full tweet can be found below.

Concerns that the Anticipated Bitmain IPO Might Not Be As It Seems

If the reported losses of $740 Million turn out to be true, and without factoring in the costs of the Hash Wars, investors might begin to assume that the anticipated public offering of Bitmain worth $18 Billion might be a way of passing over ‘the bag’ of a failing venture.

It was also revealed that Bitmain decreased its holdings of Bitcoin in preference for Bitcoin Cash around March this year.

One Medium blog summarized the scenario of passing the bag through an IPO as follows:

You have a persisting bear market.

How do you realize the value of this monolith crypto business and your holdings?

You IPO and pass the bag on in one huge lumped stock offering and hope investors don’t realize all of your current assets are very, very illiquid.

UnitedCorp Files Suit Against Bitmain, Roger Ver and Others

In addition to the aforementioned concerns, UnitedCorp has launched a suit against Bitmain, Bitcoin.com, Roger Ver, Kraken Bitcoin Exchange and others. The suit claims that they hijacked the Bitcoin Cash Network after the November 15th hard-fork. UnitedCorp filed its suit in the US District Court for the Southern District of Florida.

What are your thoughts on the possible losses at the Bitmain cryptocurrency mining company? Do you think that the cost of Hash Wars could increase the rumored figure of $740 Million significantly? Please let us know in the comment section below. 

[Image courtesy of AngelBroking.com]

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

The post Rumor: Bitmain Financials Indicate $740 Million In Q3 Losses Excluding Cost of Bitcoin Cash (BCH) Hash War appeared first on Ethereum World News.

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Rumor: Bitmain Financials Indicate $740 Million In Q3 Losses Excluding Cost of Bitcoin Cash (BCH) Hash War

Since the hard fork of Bitcoin Cash that resulted in the ABC camp claiming the ticker for BCH, the value of the digital asset has dropped from around $500 on the day before the event (November 14th) to current levels of $115. This is a drop in value of 77% in a period of less than a month. Some crypto enthusiasts and analysts have concluded that BCH has entered what is known as a Downward Spiral. This has been explained as the situation where it might not be profitable to mine the digital asset.

Recap of Hash Wars

The Bitcoin Cash hash wars involved two camps. There was Craig Wright who supported the Satoshi Vision upgrade of BCH or simply BSV. Then there was Roger Ver and Jihan Wu (CEO of Bitmain) who were for the ABC version of the coin’s upgrade.

Bitmain Rumored to Have Made $740 Million In Loses in Q3, 2018

According to the Bitcoinist, unconfirmed leaked information indicate that Bitmain has lost $740 Million in Q3 of 2018 excluding the costs to financing the Hash Wars. The Bitcoinist cites a twitter account with the username of @BTCKING555 who revealed the information as follows.

We got leak of Bitmain Q3 numbers! COMPLETE DISASTER. The company lost $740 Million including losses on inventory and bitcoin cash! And this is not accounting for hash war costs! #bitmainipo @HKEXGroup

The full tweet can be found below.

Concerns that the Anticipated Bitmain IPO Might Not Be As It Seems

If the reported losses of $740 Million turn out to be true, and without factoring in the costs of the Hash Wars, investors might begin to assume that the anticipated public offering of Bitmain worth $18 Billion might be a way of passing over ‘the bag’ of a failing venture.

It was also revealed that Bitmain decreased its holdings of Bitcoin in preference for Bitcoin Cash around March this year.

One Medium blog summarized the scenario of passing the bag through an IPO as follows:

You have a persisting bear market.

How do you realize the value of this monolith crypto business and your holdings?

You IPO and pass the bag on in one huge lumped stock offering and hope investors don’t realize all of your current assets are very, very illiquid.

UnitedCorp Files Suit Against Bitmain, Roger Ver and Others

In addition to the aforementioned concerns, UnitedCorp has launched a suit against Bitmain, Bitcoin.com, Roger Ver, Kraken Bitcoin Exchange and others. The suit claims that they hijacked the Bitcoin Cash Network after the November 15th hard-fork. UnitedCorp filed its suit in the US District Court for the Southern District of Florida.

What are your thoughts on the possible losses at the Bitmain cryptocurrency mining company? Do you think that the cost of Hash Wars could increase the rumored figure of $740 Million significantly? Please let us know in the comment section below. 

[Image courtesy of AngelBroking.com]

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

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BCH Chain Splits Almost Inminent: Craig Wright Abandons Bitcoin Cash Summit. Roger Ver Speaks Out

The Bitcoin Cash community has had a hectic week, and the gap between two large factions seems to have reached a point where the differences are irreconcilable. This seems to be the only conclusion one can draw after hearing the statements of the most important figures within the Bitcoin Cash ecosystem, especially after the Bangkok Miners Summit of 2018.

The critical event had the purpose of contrasting views on both sides and determining which changes are necessary and safe for the blockchain, as well as which changes should be avoided. Of course, both supporters of the Bitcoin ABC proposal and supporters of the Bitcoin SV proposal were invited.

However, shortly after the debate began, Craig Wright, one of the most critical Bitcoin SV advocates left the meeting, leaving many without the opportunity to argue the merits or disadvantages of Bitcoin SV.

Craig Wright Leaves the Bitcoin Cash Miners Meeting

After leaving what he called a “bullshit” meeting, Craig Wright had an interview with Hayden Otto, anchorman of YouTube’s Crypto Strategies channel, with whom he talked about several points, including various controversial aspects that have caused division within the community.

In short, some proposals for change seem to be seeking the profit and control of certain power groups. He compared Bitcoin ABC’s refusal to push a 128MB block to Bitcoin’s (BTC) “philosophy” of not increasing the blocksize and relying on layer-twoo solutions.

He sharply criticized Jihan Wu for his damaging actions and took the opportunity to promote the advantages of joining the pool he is developing for Bitcoin SV, as it prevents a chain split, has a better profit distribution, and costs are meager.

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Roger Ver Speaks Out

Roger Ver also raised his voice in this regard. He was a little disappointed by the lack of consensus and the attitude of Craig Wright, but he considers that the ability to “fork off” that a person has when they disagree with a change proposed by the majorities is precisely what gave birth to BCH.

On “Wormhole,” the initiative proposed by Bitmain, Roger Ver considers that a token burn is a good thing because it increases the ratio of demanders concerning the offer; however, he refrained from issuing more comments, claiming he did not fully understand the issue.

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So far the supporters of each proposal seem adamant about not getting a common point, even though Mr. Ver considers that there is a large area of agreement. Bitcoin Cash remains relatively stable at around $600

Bitcoin Cash Daily PriceGraph: Tradingview

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Bitcoin SV Alpha Launched Claiming to Follow the Real Satoshi’s Vision about Bitcoin

Craig Wright stays determined to pursue his view of what Bitcoin Cash should be, promoting what he believes is Satoshi Nakamoto’s true vision. The BCH client known as Bitcoin SV has generated mixed opinions, however, its development does not stop and every day seems to gain more followers.

In a dark episode for the Bitcoin Cash community and after a series of verbal an written confrontations in which even Vitalik Buterin himself issued opinions on what he considers best for the BCH community, the alternative proposed by nChain to achieve a better blockchain seemed to emerge unscathed from the bad propaganda.

In an announcement made by Mr. Wright, the first pool with the capacity to mine the Bitcoin SV blocks was made public. This move seems to be a direct response to the predisposition of Bitmain and its pools to withdraw any support for Bitcoin Sv

Screenshot of the new Bitcoin SV Pool’s Website

An Inminent Chain Split

It is also important to note that the Bitcoin Cash community seems to be facing a split in the blockchain given the conflict between the configurations and philosophies of the Bitcoin ABC and Bitcoin SV groups.

While Bitcoin ABC follows the more traditional rules of the BCH community and is compatible with other proposals made by groups such as Bitcoin Unlimited, Bitcoin SV is not. And in case the Bitmain-dominated group of miners does not provide the necessary support, Bitcoin SV already has a prepared defense as Calvin Ayre, and CoinGeek have stated that they have a number of ASICs specially designed to mine Bitcoin SV which will be available to combat the Bitmain monopoly:

“CoinGeek also wants to announce that we have designed a super energy efficient, next generation ASIC chip design that will be released later this year. This Chip will be optimized for Enterprise level mining on Bitcoin using the original Satoshi Protocol. We will have a booth demonstrating this at the CoinGeek Week Conference last week of November in London and invite all miners to join us in planning for the future of this industry at this event.”

Welcome Bitcoin SV Alpha

The Bitcoin SV project had planned to launch a beta in September, however, due to the community’s insistence on evaluating the project, the development team decided to publish an Alpha release. It does not propose an immediate implementation but instead seeks to generate debate on its characteristics, errors, potential, etc.

“This is an Alpha release, the purpose of which is to provide a preview of the code in response to requests from miners and pool operators. This is not intended to be a release candidate. Work is still in progress targeting a beta release for 1st week of September in line with the initial Bitcoin SV announcement.”

So far, despite the controversy, Bitcoin SV seems to be on a roll, gaining support over time:

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New Chapter on BCH “Twitter Wars”: Bans, Blocks, Insults, and 3 Proposals Claiming to be “The Real Bitcoin”

The Bitcoin Cash (BCH) community is witnessing a war between its most important figures, who seem to disagree in the future that this controversial altcoin will pursue after some modifications were proposed, causing a strong debate that seems to be worsening every day.

Ever since Amaury Sechet, one of Bitcoin Cash’s leading developers proposed a change known as pre-consensus, the split of opinions and controversy began to create a strong sense of division in the community.

Amaury’s expulsion from the BCH Slack group was the start of a recent wave of controversy in which intolerance led the “leaders” behind the popular altcoin to bans, blockades, insults and discredits, weakening the image of solidity they sought to build since BCH was officially born as an altcoin forked out of the original BTC’s blockchain.

When Bitcoin Cash was born, one of the most significant premises was to create a blockchain with a higher level of scalability by increasing block size. The proposal was supported by a group of miners with strong hashing power.

Craig WrightCraig Wright

Let The BCH Games Begin

However, after Craig Wright, a well-known BCH advocate famous for his claims to be Satoshi Nakamoto — a statement that earned him the nickname of Faketoshi within the community of cryptocurreny users — proposed a fork and spoke against Jihan Wu, accusing him of leading the whole blockchain to a centralized state; users split into 2 groups. But it was the way of “debating” what has generated another black chapter within the community:

One of the characters who posted some controversial tweets was Cobra, bitcoin.org admin. In one of his controversial statements, Cobra says that his own  “Cobra-Client”, a BCH UANF (Bitcoin Cash User Activated No Fork) implementation, follows the true philosophy of the original Bitcoin, and is the best way to avoid a split in the chain. He commented that Bitcoin ABC (actual client) and nChain’s proposals are simply “scams.”

Likewise, in a previous tweet, he criticized the hypocrisy behind those who advertise BCH as “Bitcoin” while promoting a series of changes in the BCH blockchain; a scenario which precisely led to the BTC fork that gave birth to BCH

Craig Wright: Jihan Wu Will destroy Bitcoin Cash (BCH)

A few days later, Craig Wright also tweeted that Wormhole, a proposal backed by Jihan Wu, is an implementation that would likely destroy Bitcoin Cash:

Jihan Wu: Craig Wright is “a liar, fraud, plagiarist and an imbecile”.

For his part, Jihan Wu posted a tweet attacking Craig Wright for his positions. In the same post, he attached an article in which they refer to Craig Wright as “Faketoshi.”

He also retweeted a comment referring to Craig Wright as “a liar, fraud, plagiarist and an imbecile.”

Cobra: Jihan Wu and Roger Ver are Bad Leaders

Although Roger Ver has not spoken out, his traditional stance makes Cobra suspect of an “alliance” between him and Craig Wright, so he tweeted blaming him in part for the community’s bad times. He also said, this whole “mess” is a consequence of Jihan and Ver’s actions:

After this soap opera, Jihan Wu unfollowed Cobra and blocked Craig Wright.

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Roger Ver: Bitcoin Cash (BCH) Is “The Best From An Investment Standpoint”

For the better part of a decade, Bitcoin (BTC) has sat at the forefront of the cryptocurrency industry, continually proving itself that it is a reliable project to invest your time and money in. But for proponents of Bitcoin Cash, the crypto that spawned out of August 2017’s hard fork of the Bitcoin chain, BCH reigns supreme.

It goes without saying that Roger Ver, dubbed “Bitcoin Jesus” by some, has quickly become the controversial poster child of Bitcoin Cash. Ver recently spoke with the hosts of CNBC’s “Fast Money” show to discuss his opinions on the cryptocurrency market, specifically regarding Bitcoin Cash (BCH).

Commencing his time on the segment, he first pointed out the fact that Bitcoin had become unusable as a form of digital cash. Elaborating on this ideology, he stated:

BTC, Bitcoin, is no longer, or at least last December, wasn’t usable as commerce as all. The fees became high, the transactions became slow and unreliable, and people like myself and everybody else that was trying to use it for commerce stopped at switched to something else.

Seemingly expressing his positive sentiment regarding Bitcoin Cash, he added that this “something else” could be BCH for “the most number of people.” However, as critics constantly point out, Bitcoin Cash (BCH) has underperformed Bitcoin greatly this year, with the relative value of the fork falling by over 50% from 0.1834 BTC to 0.08 BTC as it stands today.

Regardless, “Bitcoin Jesus” went on to note that Bitcoin Cash’s dismal performance should not be a cause for concern for BCH diehards. Referencing his over six years of experience in the ever so volatile cryptosphere, the outspoken BCH advocate noted that he first invested in Bitcoin at approximately $1, and saw his investment grow 30-fold in 2011’s ‘bubble’. Following this astronomical run, Bitcoin fell by over 90% back to ~$2, which turned his 30x gain into ‘just’ 2x.

Likening investment to the good ole game of hockey, Ver pointed out that players, or in this case investors or traders, should head to where the puck is going to be rather than where it is currently. Explaining why BCH is where the ‘puck’ (money) is heading, Ver noted that “all the adoption, merchants, and business are being built on top of Bitcoin Cash at this point, so in the future, I think BCH is the best from an investment standpoint.”

Ver May Be A BCH Proponent, But He Says To “Diversify, Diversify, Diversify”

Aiming to stay relatively unbias, the foremost BCH proponent added that investors should never keep all their eggs in one basket, in cryptocurrencies or in publicly-traded vehicles alike. CNBC Host Mellisa Lee, seeming intrigued by this statement, went on to question Ver about his overall cryptocurrency portfolio. Staying true to what he preached about diversification, he noted:

I hold more Bitcoin Cash then anything else, but I have some Ether, some ZCash, some ZCoin, Dash, Monero and I still hold BTC as well. So a little bit of everything is a good idea, including a bit of Ripple (XRP) and Stellar (XLM). Diversify, diversify, diversify is the name of the game.

Later reverting to his BCH-centric mindset, Ver added that he began to diversify his 99% BTC portfolio around two to three years back when he saw the “writing on the wall” that Bitcoin developers had “an insane idea” to leave blocks small.

Photo by David Shares on Unsplash
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Vitalik Buterin about BCH fork “Bitcoin SV:” A ‘Fitting Succesor’ of Bitconnect (BCC)

Vitalik Buterin, the founder of Ethereum, tweeted about the current debate in the Bitcoin Cash community about a fork proposal that nChain, the company for which Craig Wright serves as chief scientist, is actively promoting.

This initiative follows a series of disagreements with Bitcoin ABC regarding some modifications to the protocol used. According to Craig Wright’s vision, Bitcoin Cash, the fourth-ranked altcoin in the global market cap today, is moving away from Satoshi Nakamoto’s vision by applying a series of “unnecessary changes.”

As for Mr. Wright’s idea, Vitalik Buterin believes that a fork could be counterproductive:

“Faketoshi”?

Vitalik Buterin has always expressed his rejection of Craig Wright’s conceptions. On several occasions, he has described Wright as lying about his allegations of being Satoshi Nakamoto. In the tweet, he commented that this was the perfect opportunity to “conclusively ostracize and reject him.”

Craig Wright

A short time ago, in Seoul, during the Deconomy 2018 Summit, Vitalik Buterin referred to Craig Wright asking why a “fraud” as him was allowed to speak at the event. This is something Buterin has continuously emphasized.

It is important to note that Wright’s proposal has not enjoyed the support of big names in the community and is therefore not popular enough to gain a significant user base for the BCH blockchain, nevertheless, the support of a major mining pool such as CoinGeek could prove decisive for its implementation.

Vitalik Buterin: Bitcoin SV = BCC

The fork promoted by nChain and rejected by Vitalik is known as Bitcoin SV. The “SV” stands for “Satoshi’s Vision”, since, according to Craig Wright’s interpretation, it would be the closest blockchain to Satoshi Nakamoto’s true vision expressed in Bitcoin’s Whitepaper, a claim identical to that of Roger Ver and other BCH advocates when referring to their altcoin as being the real Bitcoin.

source: 4chan

Vitalik also took the opportunity to refer to Bitcoin SV as “Bitcoin Craig.” He said he can use the BCC ticker, named after Bitconnect, the currency known to be one of the most famous Ponzi schemes in history. For Buterin, Bitcoin SV, it is a fitting successor to the famous scamcoin.

Bitcoin SV proposes to restore four Satoshi opcodes that were disabled from Bitcoin blockchain, as well as to remove the proposed changes to BCH. They also focus their proposals on an even larger growth in block size, even though the size of the mined blocks in the BCH blockchain is currently less than 100kb, with a maximum capacity of each block of 32 MB.

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3 Facts That Show The ‘Dark Side’ of Bitmain Before Its IPO

Bitmain is the most important company in the mining industry and one of the most succesful companies in the crypto-ecosystem . Jihan Wu’s company has contributed so much to the development of the crypto-verse that many believe no other private business can compare to it.

However, despite these facts, Bitmain’s image is negative within the ecosystem. Last year, Coindesk listed Jihan Wu as one of the ten most influential figures of the Crypto-verse, describing him as “The Villain.

Bitmain recently announced its plans for an IPO, a decision that could further increase its financial value, but after disclosing some facts about its business scheme, the debate about the company quickly reignited.

Here are a 3 interesting facts that show the dark side of Bitmain:

1. ‘Unethical’ Mining Practices

The mining company known for promoting Bitcoin Cash, does so not merely out of love for the advantages of that crypto, but for the ease with which it can dominate most of the mining power.

Bitmain produces most of the mining equipment available on the marketAccording to Trustnodes, Bitmain is very close to owning 51% of BCH’s hashing power. Some sources place the current figure at about 49.64%

Likewise, Bitmain is facing some accusations of secret mining, a practice through which they use their own ASICs to mine crypto before releasing them to the market. This would give Bitmain a substantial competitive advantage over other miners as this would increase hashing power with little competition, ensuring a significant profit. After this practice, they start selling their devices.

Bitmain denies these accusations:

“In the end, Bitmain values transparency and fair competition. We therefore remain opposed to this practice [secret mining] and maintain our long-held zero-tolerance policy regarding same”.

However, in the information they provide on the occasion of the IPO, Bitmain omitted some details about their mining activities.

Recently, SiaCoin’s development team revealed that Bitmain was secretly mining its token before making its ASICs available to the market. Salva Herrera, creator of SiaStats explains:

“The oldest block we can track of Antpool is #132204, dated on November 17th, what means that Bitmain mined Siacoins in secret for exactly 2 months …

 According to some estimations, the development of the A3 costed Bitmain $10 million. If they planned the trades carefully, this means they could have recovered the whole cost of the ASIC development just by secret mining during those 2 months. This, of course, on top of the $74 million in sales profit just from the first 2 batches ($2300 per unit and 33,000 units as we explained above).”

Courtesy: siastats.info

2. The Reasons Behind Their BCH-Pumping Strategies

Bitmain promotes BCH, but this crypto has already caused it at least $500 million in losses.

A leaked prospectus of Bitmain’s IPO shows that Bitmain owns about 1 million BCH; an amount that would be difficult for them to capitalize on given the small market for that altcoin when compared to Bitcoin.

In fact, according to information provided by Trustnodes, the company invested in the altcoin when the token’s price was around $900, so Bitmain’s BCH investments have represented a loss of roughly $500 million.

An increase in the adoption of such token would imply an increment in the budget of Bitmain and other large BCH advocates.

3. The Interest of Large Financial Firms May Not Be As Real As Many Think (or wish)

Some time ago, there was news about the interest of large business firms in participating in Bitmain’s IPO. According to information published by QQ News, an important Chinese news portal, companies such as Tencent, Softbank, and China Gold Investment are interested in investing large sums of money in Bitmain.

However, after telephone contact between Cointelegraph and Kenichi Yuasa of SoftBank Group Corp’s Corporate Communication Office, this information was revealed to be false. In Mr. Kenichi’s words:

Neither the SoftBank Group Corp. nor the SoftBank Vision Fund were in any way involved in the deal.”

Also, Coindesk confirmed that a spokesperson for Tencent Inc. commented via email that the company also claims such rumors to be false

“[Tencent Inc.] is not involved in this investment … The news is not true.”

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