Craig Wright’s Bitcoin Cash SV (BCHSV) has 61% of hashrate, price to overtake BCHABC?

Craig Wright

The Bitcoin Cash fork wars is heating up and all bets are off on which chain will win out – BCHABC or BCHSV.

Judging the price of the two futures products trading on Poloniex, then BCHABC is out ahead at $404, with BCHSV trading at $114.

But that’s far from the end of the story.

Firstly, BCHABC price has fallen 7% in the past 24 hours while BCHSV had advanced 14%. Presently, then, the momentum is clearly with BCHSV.

BCHSV has 61% of hashrate

So what is driving the buying in the futures market? Ultimately it all comes down to hashrate  which one will attract the most miners. Without the miners there are no transactions.

On that score BCHSV is winning, with an estimated 61% of hashpower, according to coin.dance.

coin.dance bitcoin cash miners

 

If you have the hashpower you can kill the other chain by simply mining empty blocks, thereby effectively stopping transactions from going through. This is what one BCHSV supporter is arguing for and sharkpool mining pool is planning to do.

Which has most nodes?

However, when it comes to active nodes, it is BCHABC that is ahead by a big margin:

BCHABC

BCHSV

Craig Wright and his nChain company are behind the BCHSV development efforts and by all reports are working night and day to make sure their full node client works without a hitch from Thursday 15 November onwards.

Today Wright made it clear that, regardless of what sharkpool does, he intends to make sure that BCHABC transactions are “reversed”:

BCH futures “illegal” claims Wright

Wright has gone so far as to suggest that trading in Bitcoin Cash futures is illegal and has warned the chief executive of Bitmain (owner of BTC.com and Antpool) against using shareholder money to boost BCHABC. You can watch the interview with Tone Vays below:

CoinGeek, the largest BCH mining pool and supporters of the BCHSV version of Bitcoin cash, is owned by billionaire Calvin Ayre.

Bitmain founder and chief executive Jihan Wu has committed to getting rid of “fakesatoshi”:  of the BCH pools it controls:

Wright, as you can see in the video, is taking no prisoners either. Referring to attempts to scale bitcoin and the fork that created Bitcoin Cash, Wright initially thought the Bitmain ceo was onboard with this, but proved to be mistaken.

Wright fears Jihan Wu may be deploying his company’s new Antminer S15 ASIC miner to boost the hashrate of the BCH pools it controls.

“Unfortunately we actually communicated all this to Jihan, thinking that he was supportive and wanted to scale and we found that Jihan, at that time, undermined all of this. Jihan actually wanted the split. He didn’t want a fork, he wanted the split. So, part of what happened a year ago with the BTC – BCH split was, Jihan actually needs a form of Segwit and malleability fix that allows for ASIC boost”

Replay protection

Transaction malleability according to some computer scientists makes it easier to implement replay attacks where the same transaction is “replayed” on a competing chain.

Neither the BCHABC or BCHSV implementations have replay protection. That could be a problem on and after the 15 November, although if BCH “hodlers” are using  an exchange such as Binance or Coinbase that are supporting and monitoring developments you should be OK.

Hardware wallet Ledger is not supporting the fork and is suspending deposits and withdrawals of BCH until the picture is clearer regarding which chain comes out on top.

Whoever wins, as we pointed our previously, none of this is good news for Bitcoin Cash as it all serves to confuse consumers. Others might say, given that adoption of BCH as “digital cash” is very low, it doesn’t really matter. The software upgrades are about the future: being ready to transact at scale when the users come.

Bitcoin cash is down more than 5% to $514 at the time of writing.

Live BCHUSD 1-hour price chart courtesy of TradingView


 

About the Author

Jennifer Collins
Jennifer has been writing about crypto since 2016 when she first got interested as a student at Queen Mary University in London. You can email me here: jennifercollins@coinintelnews.com

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