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Is Bitcoin Cash (BCH) Losing Value Due to Bitmain’s Alleged Financial Woes?

The crypto community breathed a sigh of relief after the Bitcoin Cash (BCH) hash wars reportedly ended on the 23rd of November. The Hash Wars that had officially started on the 14th of the same month, were due to two factions of the BCH community not agreeing on which upgrade to implement. This then led to a bitter battle between one camp led by Craig Wright (Bitcoin SV) and another by Roger Ver and Jihan Wu. The two camps eventually settled to fork the BCH blockchain.

Mr. Wu is the current CEO of Bitmain which is a company that specializes in designing ASIC chips for Bitcoin mining. The company also operates two of the largest Bitcoin mining pools: BTC.com and Antpool.

Signs of Trouble at Bitmain

The initial signs of trouble at Bitmain started right before the Hash Wars when it was reported that Jihan Wu had lost his seat as the company’s board executive director after a board reshuffle. Jihun was reportedly replaced by Zhan Ketuan. The reason for the reshuffle was not explained but on the same day, 90,000 miners were hurriedly deployed in China’s far-western region of Xinjiang to mine Bitcoin Cash ABC – the current BCH.

After the Hash Wars were over, it was rumored that the Q3 financials of Bitmain indicated that the company had made losses amounting to $740 Million. This amount excluded the cost of financing the hash wars. The unconfirmed losses by the company has led many to speculate that the pending IPO is an exit strategy by execs at Bitmain.

According to research by a team at Bitmex, the joint loss by both camps due to the BCH hash wars could well have exceeded $10 Million. Bitmain has also closed down its Israeli Blockchain development center, citing crypto market conditions.

Pending Law Suit Against Bitmain

Soon after the hash wars, UnitedCorp launched a suit against Bitmain, Bitcoin.com, Roger Ver, Kraken Bitcoin Exchange and others, claiming they had hijacked the Bitcoin Cash Network after the November 15th hard-fork.

Rumors that Bitmain is Liquidating its BCH

Additional rumors circulating on Crypto Twitter indicate that Bitmain might be liquidating its BCH stash to pay off supplier debts totaling $600 Million. One such tweet can be found below.

The same twitter user was the one who informed the crypto community about the potential $740 Million in Q3 losses made by Bitmain. The user also had this to say in a recent tweet.

PREDICTION: Bitmain will finish the year with NEGATIVE $1,2-$1,5 BLN NET INCOME and cement its place as most money losing company in the industry #BitmainIPO @HKEXGroup

If the reports of Bitmain’s financial woes turn out to be true, it explains why Bitcoin Cash has continually fallen from the number 4 spot on coinmarketcap.com, to its current number 7 ranking. Before the hash wars, BCH was trading at around $500. The digital asset is now valued at $86 indicating a 83% drop in value in a period of one month. 

What are your thoughts on the drop in value of BCH? Could it be linked to the ‘troubles’ Bitmain is facing? Please let us know in the comment section below. 

[Image courtesy of stuff.co.nz]

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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Video Demonstrates Double Spending Possibility in Bitcoin Cash SV ‘0-Conf’ Transactions

Findings from a test by an online persona known as “reizu” revealed four nodes control 75 percent of the BSV hashrate.

Bitcoin Cash SV (BSV), a new fork of Bitcoin Cash (BTC), faced new controversy on Dec. 8 after a researcher reportedly showed how any user could spend the same coins twice on its network in a “0-conf transaction.”

Bitcoin Cash, which was created in a hard fork from Bitcoin (BTC) in August 2017, uses 0-conf (or zero-conf) to allow almost instant transactions, meaning they are almost always confirmed in the following block.

In a multi-phase test including a video demonstration posted to Vimeo, the user, known as “reizu,” succeeded in “double spending” BSV tokens in a “0-conf transaction,” demonstrating the network’s vulnerability to attack and disproving major proponent Craig Wright’s claims (in reference to BCH) that “only miners” could do so.

The double spending demonstration was filmed with POP!, a point of sale (PoS) retail application that includes double spending detection.

“I’ve done many double-spending on the Bitcoin SV network,” reizu wrote in a Dec. 8 post on Honest Cash, a BCH-based social network created after the November hard fork. Honest Cash’s information page notes that the site was created in response to the censorship they reportedly observed on other platforms during the Nov. 15 hard fork.

BSV has faced difficulties from the outset since it came into being mid-last month.

During its first week, a blockchain reorganization gained the network considerable negative publicity as high-profile critics accused it of centralization, in contrast to Bitcoin’s (BTC) decentralized network.

As part of the investigation, reizu also reported signs the BSV network was “very centralized.”

“After a few mined blocks I discovered that the transactions that were being mined were those that were sent almost always to the same nodes,” his post continued.

Out of a total of 450 nodes, reize concluded that just four control 75 percent of the network’s total hashrate.

Technical woes have so far failed to halt BSV’s success among investors meanwhile, with the fork overtaking rival Bitcoin Cash ABC (BCH) in market cap Friday.

BSV/USD is trading around $102.25 at press time and ranked sixth on CoinMarketCap, compared with BCH/USD at $100.1 in seventh place.

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Craig Wright: Bitcon SV Will Be Processing 1 TB Blocks Within The Next Two Years

At the onset of the hash war that followed the Bitcoin Cash hard fork of November 15, Bitcoin SV seemed to be almost losing totally to its then formidable rival, BCH ABC. The two sprang out from different chains to become separate cryptos as BCH broke up during the eventful fork.

Satoshi Vision

In essence, Bitcoin SV is meant to fulfill the vision of Satoshi Nakamoto. According to Craig Wright and his team, the network is better off without being lumped up in extra layers of off-chain scaling solutions. Instead of that, BSV will be expanded to increase its storage space and block size to accommodate more nodes.

Bitcoin SV: The Current State

At the moment, BSV blocks are the smallest of the three Bitcoin versions. This is mainly due to lack of a sustained transaction volume on the chain. Craig wants to change that.

Projections

Just like Satoshi, Craig has a vision for BSV. In a recent tweet, Craig announced that BSV is keeping a two-year target to achieve up to 4 million TPS and build a Terranode network. It’s common knowledge within the Bitcoin community that BSV really needs to expand its transaction space. In fact, the first plan drawn after the hard fork centered on boosting BSV’s block space to 128MB.

To achieve these goals, Craig’s team plans to forge partnerships with various big corporate institutions to bring them onboard and boost the transaction volume on the network. Also, low transaction fees backed up with enough block space will attract various blockchain-based developers to the BSV network.

Parting Shot

Craig Wright’s projections may be realist, but BSV must put up a tough fight in an industry where every crypto is fighting tooth and nail to stay relevant. For one, BSV is expected to face a huge task in going up against the likes of Bitcoin, Bitcoin Cash, NEO, and Ethereum.

In terms of cost, it’s hard to determine the resources to be invested in achieving Craig’s goal of a 1 TB storage space in two years. At present market rates, the figure stands at $300 per hour. However, this cost could be reduced by at least 40% by use of economies of large scale. If Craig’s projections come to fruition, the crypto space will benefits as a whole since a good percentage of global transactions will be happening on a blockchain network.

 

 

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Allegedly Silkroad – related Wallet Moves $100M in Bitcoin to Exchanges Amidst Last Week’s Bullish Run

Apparently, a wallet that had been inactive for almost five years moved 111,114 BTC to various exchanges around the world with the aim perhaps of promoting trading in the popular crypto-market after a recent bullish trend in Bitcoin prices. Reddit User Sick_Silk published after a very deep research

For years, the wallet, 1933phfhK3ZgFQNLGSDXvqCn32kgFQNLGSDXvqCn32k2buXY8a  has been the scope of many curious enthusiasts as its owner has remained in the shadows, generating much speculation in the community (also earning the nickname of “wallet 1933ph”, “1933x” or simply “wallet 1933)”; however, a bitcointalk post of October 14, 2013, mentions that it could be related to DPR (Dead Pirate Roberts) the pseudonym that the authorities were able to attribute to Ross Ulbricht, founder of Silk Road, after his trial.

“Long story short, I think, if my analysis is not wrong, the address 1933phfhK3ZgFQNLGSDXvqCn32k2buXY8a belongs to DPR. He used a tumbler to mix his coins but looks like it wasn’t good enough to hide the trail. I just used a shortest path something to find the path that leads to the final destination. So here is the trail:

1LDNLreKJ6GawBHPgBB5yfVLBERi8g3SbQS (tx: afeecd8e47d6c3912d6c2e5e5f7a2ceafdecc9d4ad221480fe90847c23f81c8892) -> ->

1BG9jDV3pA1MsJUnvRyWuA2b7PfGd4MZaw (tx: acb4608da3e06bb787682c7b2f5c4808b831301617cdf5986fd2693970c8040e) -> -> ->

12h6TzwPNBvDnppbsqpyXwwW4oo5UUKaKSa (tx: fb059f1acfe0399ca2d5090ff9264dfe88b918230c01f09391eaefa83082f4fb) -> ->

1EG9HJG9aGqzgGujfNQMiNbyqpKnFxafvE (tx: f3b6040fd5c2f70d4be82e5a97b9fcad67a1ebdfa20af8c7915b82afdd8aaa174) -> -> ->

1AHki5AbZYiz4fHkGSTVKN3T1Tv5PwZpnh (tx: 758b776dec1851a94a94a6c4ee1782aaf7210a59ae1e8c184d2b469d8039ff1773c) -> ->

15TEAwEMxVS3BK718HhwgJg7nxwyJ2ib9y (tx: 70d46f768b73e50440e41977eb13ab25826137a8d34486958c7d55c5931c6081) -> ->

1933phfhK3ZgFQNLLGSDXvqCn32k2buXY8a””

It is important to note that although there is a ‘link’ between the transactions, the use of a coin mixer makes it very difficult to confirm with absolute certainty the suspicions of “assortmentofsorts” (the OP). However, such statements cannot be refused with total confidence either.

It is also important to mention that the wallet appears in a stocks sales contract that Dave Kleiman made to Craig Wright on April 2, 2013, so some have commented that it could be a movement of Bitcoins by Mr. Wright prior to the launch of Bitcoin SV, a Bitcoin Cash fork that aims to consolidate as the “true vision” of Satoshi Nakamoto.

According to the research, the owner of the famous wallet moved the 4-year-old dormant bitcoins through several transactions that ended in 3 significant exchanges with substantial trading volume: 11114 reached a Bitfinex wallet: 1Kr6QSydW9bFQG1mXiPNNNu6WpJGmUa9i1g

Likewise, 4421 were transferred to a Binance wallet 1NDyJtNTjtNTjmwk5xPNhjgAMu4HDHigtobu1s  for a period from 21 August to 2 September:

Finally, a smaller amount of only 210 BTCs made it to a Bitmex wallet:

So far there has been no significant market reaction to this sudden move, Bitcoin (BTC) remains stable at a price above $7.2k with bullish trends in 1-day candles.

Graphs: Tradingview

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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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Bitcoin Cash Drama: Battle Lines Drawn Ahead of Scheduled Hard Fork

Controversial and untrusted figure in the Bitcoin Cash (BCH) community Cobra Bitcoin may prove to be the saving grace for the network’s future, after a highly contentious dispute between Bitcoin ABC and nChain threatens to split BCH into competing chains ahead of a scheduled hard fork in November.

Cobra, the anonymous owner of Bitcoin.org and previous critic of Bitcoin Cash, announced the Cobra Client hard fork in a Medium post and dubbed the upgrade a “safe implementation of the Bitcoin Cash protocol.” The proposed upgrade is in response to the “mostly non-important and non-urgent changes” proposed by major developers Bitcoin ABC and nChain.

Major developers clash over proposed upgrades

Bitcoin ABC, the biggest Bitcoin Cash client, initiated the stir in the BCH community after it released version 0.18.0 of its full node Bitcoin Cash implementation on August 20, which included major software changes like canonical transaction ordering and two new operation codes (opcodes).

Bitcoin ABC’s proposal came days after nChain, Craig Wright’s Blockchain development firm, announced their own fork of BCH, Bitcoin SV — or Bitcoin Satoshi Vision (SV) on August 16. nChain’s upgrade has seen support from Coingeek, the largest BCH mining pool.

nChain’s Bitcoin SV will increase block size from 32MB to 128MB and reinstate four “Satoshi opcodes” in an effort to restore the original Bitcoin protocol. Wright opposed the addition of new opcodes and other arbitrary changes to the network and stated nChain would revert to version 0.1.0 implementation in order to preserve long-term stability for BCH.

Jihan Wu, Bitmain founder and major supporter of Bitcoin ABC’s initial hard fork of Bitcoin in 2017, weighed in on the debate and dismissed Craig Wright’s baseless opposition to the fork, calling him a “fake Satoshi.”

Ethereum founder Vitalik Buterin also took a strong stance against Wright, saying in a tweet that “the BCH community should NOT compromise with Craig Wright to ‘avoid a split’ and should embrace it as an opportunity to conclusively ostracize and reject him.” Buterin called Craig Wright a “fraud” after hearing him speak at the international Blockchain forum Deconomy in April, alluding to Craig’s claim of being the creator of Bitcoin.

Cobra proposes a compromise to settle the drama

Cobra previously caused outrage in the Bitcoin community after suggesting changes to Satoshi Nakamoto’s white paper and also suggested changes to the original Bitcoin proof-of-work (PoW) consensus algorithm, stating a need for more decentralization.

Now, in an apparent effort to save the reputation and future of Bitcoin cash, Cobra is pushing for a sensible approach to the network’s upgrade to avoid a split. Cobra stated the necessity to avoid interrupting service to users, which will cause irreparable damage to BCH’s reputation and value, and that if there is no consensus, then it is best not to make any changes at all.

Cobra Client is a conservative approach and won’t add any new changes due to the lack of consensus on new opcodes and canonical transaction ordering proposed by Bitcoin ABC. Instead, Cobra’s fork will implement replay protection to prevent BCH transactions from being duplicated across alternate chains, in case of a splintering of BCH — which still has a strong possibility.

Cobra Client solicited support from a broad portion of BCH stakeholders to prove that the upgrade is a viable option for the BCH protocol. Cobra Client claims to have nearly 25 percent of existing BCH hashing power backing the upgrade and that a major exchange will continue the use of the BCH ticker symbol after the changes in November. Cobra Client also addressed the decrease of BCH use in commerce by securing deals with major businesses that have agreed to test the upgrade.

Ideological divisions in BCH community

Bitcoin ABC, who is responsible for the original BTC/BCH hard fork in 2017, and Wright were once in unanimous agreement that Bitcoin Cash was Satoshi Nakamoto’s ‘true vision’ for Bitcoin. But the new updates have caused a schism in the BCH community, with nChain and Coingeek claiming Bitcoin ABC’s recent move is a deviation from Satoshi’s original white paper vision.

Proponents of Bitcoin ABC’s changes argue the new features will make implementing a smart contract framework in the protocol more efficient and improve scalability. Around two-thirds of node operators use Bitcoin ABC, but that could change if a compromise between developers isn’t reached soon.

Wright, who claims to be Satoshi Nakamoto, stated in a recent blog post on Medium:

“Something people fail to understand about Bitcoin is that it is intentionally limited[…] This is purposeful[…] [It] is designed to be stable money and, for that reason, it is not designed to have new opcodes added outside the need for a few security-based replacements or to be altered.”

Still no consensus, answers for the future of BCH

Coingeek is the largest BCH mining pool and supporter of nChain’s proposed changes. The mining poll experienced an increase in its hashrate to 28 percent around the same time of the announcement of Bitcoin SV.

Bitcoin Cash Mining Distribution

Peter Rizun, the chief scientist of Bitcoin Unlimited — a development team accounting for nearly one-third of all full node clients — tweeted his position on the matter, saying Bitcoin ABC should hold off on its plans until more evidence proves its benefits.

The Bitcoin Cash community tuning into the drama is keeping a close eye on mining pools, since miners ultimately cast the vote with their hash power. The conflict within the BTC community represents an ideological schism among developers’ vision for the future of Bitcoin Cash in accordance with the principles set forth in Satoshi’s original white paper.

The Cobra Client upgrade is a safe bet, but Bitcoin ABC and nChain’s fundamentally opposing positions makes a split of BCH seem inevitable.

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A Fight Is Breaking Out Over Bitcoin Cash – And It Just Might Split the Code

With bitcoin cash developers at each other throats, the year-old cryptocurrency might just split into two.

Created from a hard fork off the original bitcoin network after the scaling debate boiled over last year, bitcoin cash stakeholders seemed unified in their goal of boosting the cryptocurrency’s block size parameter in the hopes of attracting more users and enabling more transactions.

But a few cracks started to pop up in this united front over the past year, as bitcoin cash developers had one technical disagreement after another.

And a new software release by leading bitcoin cash implementation, Bitcoin ABC, has been perceived by some as a subtle declaration of war within the developer community.

The software includes a suite of upgrades, including a smart contract feature that would support atomic swaps, a way of trading one cryptocurrency for another without traditional exchanges. And while many cryptocurrency projects are excited about the idea of interoperable coins, some big names in the bitcoin cash community don’t agree with the changes and have – no surprise – been very vocal about it.

Leading the opposition is Craig Wright, nChain CEO and the cryptographer who claims to be bitcoin’s pseudonymous creator Satoshi Nakamoto, though he’s not provided any proof of this claim so far. And he’s teamed up with Calvin Ayre, an entrepreneur and founder of crypto news site CoinGeek, to lead the resistance with a new bitcoin cash implementation called Bitcoin SV.

Bitcoin SV scraps Bitcoin ABC’s scripts for its own – as well as pushes the block size parameter to 128 MB (bitcoin cash’s block size is currently at 32 MB).

Taking a dig at Bitcoin ABC developers, the Bitcoin SV release announcement reads:

“Bitcoin SV is intended to provide a clear bitcoin cash implementation choice for miners who support bitcoin’s original vision, over implementations that seek to make unnecessary changes to the original bitcoin protocol.”

While infighting about the technical direction of a cryptocurrency is no out of the ordinary occurrence, this particular disagreement could have big repercussions for bitcoin cash.

Bitcoin ABC and Bitcoin SV are incompatible software, and both groups behind the implementations are seeking to trigger new code changes in November. As such, if some bitcoin cash users run one software and others run the other, it’ll cause a chain split and create a new competing cryptocurrency.

All about ‘fake Satoshi’

The fire underlying this technical debate was fueled by none other than one of bitcoin cash’s more prominent supporters – Wright.

After ethereum creator Vitalik Buterin took the mic at a cryptocurrency conference to call Wright a “fraud,” many developers and other stakeholders in the industry started taking sides. For instance, many devs argue against nChain’s Bitcoin SV partly because they’ve started to distrust Wright’s judgment.

Even Jihan Wu, the co-founder of mining hardware manufacturer Bitmain, who has been a proponent of bitcoin cash (his business holds a substantial stake in the cryptocurrency), joined many others on social media calling Wright “fake Satoshi” since they don’t believe his claims that he created bitcoin.

Following up on his earlier condemnation, Buterin later tweeted:

“The bitcoin cash community should not compromise with Craig Wright to ‘avoid a split’ and should embrace it as an opportunity to conclusively ostracize and reject him.”

Despite all this, though, Wright is far from alone in supporting the nChain implementation. Ayre promised in a statement to put all CoinGeek’s mining power towards it (the mining pool is the largest for bitcoin cash at press time), and Cobra, the pseudonymous owner of Bitcoin.org, took to social media to voice his opinion that those behind Bitcoin ABC are in the wrong.

“This is what happens when you have incompetent rogue developers like Bitcoin ABC lead developer [Amaury Sechet] pushing their agenda instead of compromising,” Cobra tweeted. “Tired of these fucking amateurs and morons screwing around with bitcoin cash. Upgrade with consensus, or don’t upgrade at all.”

Attempts at compromise

What’s getting lost in the debate, though, is that several notable bitcoin cash developers actually think both sides are acting out and would instead prefer to compromise.

Besides BitcoinABC and nChain, there are still other bitcoin cash implementations, including Bitcoin Classic and Bitcoin Unlimited, two software implementations that actually predate bitcoin cash.

And these veteran developers are skeptical about the two proposals getting the most attention.

“Both ABC and nChain are trying to hard fork. Both of them are not giving any rationale why. Both of them are completely not responsive to any feedback or any compromise requests from the rest of the ecosystem,” wrote Bitcoin Classic lead developer Thomas Zander.

And Bitcoin Unlimited lead developer Andrew Stone agrees.

He’s not particularly swayed by either side, arguing that both developer groups don’t have the best interest of the end user in mind.

“Given the ‘no changes, no matter how reasonable, except mine’ strategy being pursued by both of these organizations, I can only sadly conclude that this is again about power and ego not about technical merit and end-user adoption,” Stone wrote on a popular bitcoin cash forum.

Instead, he believes bitcoin cash proponents need to “stick together,” and to that goal, he’s working on a code change that would allow Bitcoin Unlimited users to effectively vote on which set of changes they’d like to see activated.

This voting system, he hopes, will help resolve not only this caustic debate but also similar situations in the future.

Meanwhile, on Thursday, Cobra announced a similar effort called the Cobra Client. But rather than allow users to vote, the client simply removes all contentious code changes and replaces them with replay protection, a code change that will protect users from accidentally losing their money in the case bitcoin cash does indeed split into two.

Yet, others, such as long-time crypto enthusiast and Bitcoin Magazine reporter Aaron Van Wirdum, remain pessimistic that a compromise will be reached.

Van Wirdum recently tweeted:

“Turns out if you start a coin by hard fork without consensus, precedent is to hard fork without consensus.”

Photo by Ivan Vranić on Unsplash

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Startup of Self-Proclaimed Bitcoin Creator Receives Three Bitcoin Cash-Related Patents

Blockchain startup nChain, associated with a man who once proclaimed himself to be Bitcoin’s (BTC) creator, has been granted three Bitcoin Cash (BCH)-related patents by the European Patent Office (EPO), according to an official statement July 11.

The three new patents relate to the development of new methods of digital rights protection using blockchain technology and specify Bitcoin Cash’s blockchain as the standard technology on which transactions are demonstrated. The first patent listed in nChain’s announcement is entitled “A method and system for verifying ownership of a digital asset using a distributed hash table and a peer-to-peer distributed ledger,” while the second two patents are both entitled “A method and system for verifying ownership of a digital asset using a distributed hash table and a peer-to-peer distributed ledger.”

NChain’s Chief Scientist Craig Wright –– who is notorious for proclaiming himself to be the anonymous inventor of Bitcoin, Satoshi Nakamoto, back in 2016 –– predicted that 2018 would be “the year” for Bitcoin, which he conflates with Bitcoin Cash.

Last fall, Wright, an Australian entrepreneur and computer scientist, seemingly admitted that he in fact was not the creator of the top cryptocurrency.

In February, 2018, Wright was sued for $5 billion –– to compensate for allegedly stolen Bitcoin –– by the estate of David Kleiman. Kleiman was a computer scientist and cyber-security expert, whom many suspect to have been one of the developers behind Bitcoin’s invention.