Bitcoin Cash Hard Fork Controversy Heats Up, BCH Goes Up 15%
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Bitcoin Cash (BCH) is out front among the leading cryptocurrencies today, boasting 15% gains in the last 24 hours on trading volume of $466 million, which reflects the most robust amount of trading in the last 30 days. The Bitcoin Cash community has designated today “Stress Test” day and as a result, are pushing the envelope for the capacity of the Bitcoin Cash network.
But there is also a great deal of uncertainty swirling around the Bitcoin Cash community surrounding a potential hard fork of the network.
Despite the community all wanting to accelerate the adoption of Bitcoin Cash as digital currency, they don’t all agree on the best way to gain scalability.
There are many moving parts to the controversy, including BitcoinABC, which is a “full node implementation of the Bitcoin Cash protocol,” Craig Wright (who once claimed to be Satoshi Nakamoto) and his company nChain, which is behind Bitcoin SV (Satoshi’s Vision), which is designed for “miners who support Bitcoin’s original vision.
” Bitcoin SV is also the potential hard fork of Bitcoin Cash in November .
But Dr. Wright is attempting to set the record straight. He said on Twitter that Bitcoin “SV will not be a separate fork” and that “there is no BCH split.
” Instead, BSV is designed to operate as a competing miner [to ABC] “as per the whitepaper on hash power.” He was responding to a statement issued by cryptocurrency exchange CoinEx, which released a statement on the BCH fork claiming that Bitcoin-SV lacks a certain “protection mechanism” that could trigger “asset loss” and urging traders to deposit their BCH on the exchange. Please note, if you do as COINEX recommends – they will own all you hold and you could end with nothing.
There is NO #BCH split. SV will not be a separate fork.
It will compete as per the whitepaper on hash power.
Ignore these frauds.
— Dr Craig S Wright (@ProfFaustus) September 1, 2018
Wright doesn’t appear to be making any friends with the upcoming BSV, and the rivalry appears to have spilled over between Dr. Wright and Roger Ver, the latter of whom is a staunch supporter of Bitcoin Cash. According to Ver on a Reddit thread , a private meeting was held in Bangkok in which both Ver and Wright attended but in which Ver claimed that “Craig didn’t even attend 95% of the meeting.
He left almost immediately after his own presentation.” Meanwhile, Reddit members pointed out that Ver unfollowed Wright on Twitter, in response to which Ver stated: “I didn’t unfollow him. He blocked me.” Stress Test Day
Meanwhile, as the Bitcoin Cash developer community hashes it out about BSV, Bitcoin Cash miners are pushing the envelope to test the limits of the network’s capacity.
Ver used it as an opportunity to take a shot at another rival, Bitcoin Core. Last year BTC could only process a single transaction for $50. Today BCH is processing 35,000 transactions for $50. #StressTestBCH
— Roger Ver (@rogerkver) September 1, 2018
According to anecdotal results on Twitter, more than 1.1 million BCH transactions were processed in the early hours of the stress test. Mining pool BTC.
com tweeted that it “mined a 13MB Bitcoin Cash block.” That surpasses the 10MB block reportedly mined by BMG Pool, which is of Wright’s nChain.
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( 1 votes, average: 5.00 out of 5 ) You need to be a registered member to rate this. Loading… Gerelyn Terzo 4.6 stars on average, based on 48 rated posts Gerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She’s also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing.
She owns some BTC and ETH. BlackOwl77 September 1, 2018 at 11:33 pm
Why didn’t you write about this stress day before it comes? as a recomendation.
It is always the same, you all write on whats past, I won”t renew my account..
You must be logged in to post a comment Login Leave a Reply Altcoins, Tokens Follow Bitcoin Higher as Labor Day Weekend Underway
Published
The cryptocurrency market appears to be back on track after a minor correction on Thursday, with all major assets booking 24-hour gains as Labor Day weekend began. Market Update
Cryptocurrency prices have fully recovered from their most recent bottom set on Thursday, with bitcoin, altcoins and tokens pushing higher in weekend trade. The combined value of all digital currencies in circulation reached a high near $233 billion on Saturday for a gain of nearly 4%, according to CoinMarketCap. Since bottoming near $220 billion on Thursday, the market has recovered 5.
5%.
Cryptocurrencies excluding bitcoin accounted for the bulk of the rally; excluding BTC, the market rose $6 billion to $110 billion. As a result, bitcoin’s total market share dipped to 52.6% from a high of 53.3% during the previous session.
The bitcoin price continues to trade in a narrow range after re-taking the $7,000 handle on Friday. As the author reported Friday, bitcoin’s latest recovery has reduced the risk of a bearish reversal as the 50-day moving average converges on the 200-day MA.
At press time, BTC had gained 1.4% to $7,048.
For the best performing altcoins, one had to go outside the top-ten. Monero and Dash, the 11th and 12th ranked cryptos by market cap, rose double-digits on Saturday. Monero’s XMR is surging after ICO consulting group Satis predicted it would be the best performing crypto over the next ten years. XMR currently sits at $119, having gained 10.2%.
Dash rose 14.
4% to $212 amid reports of increased adoption in Venezuela, a socialist republic currently in the throes of a generational economic and humanitarian crisis. Price Variations Decline
Although 2018 has been a volatile year for cryptocurrencies, the market has shown significant progress on a number of fronts, including price consistency on major exchanges.
According to SFOX, a cryptocurrency trading technology company, 2018 has seen a decline in price variations on digital currency exchanges. The firm cited growing institutional interest in cryptocurrency as the primary reason for this important shift.
“Before institutional firms were actively trading crypto or heavily involved (before 2018) bitcoin price differences between exchanges varied as high as 4.5%,” said Danny Kim, head of growth at SFOX, as reported by Business Insider .
As SFOX noted, less price variation means greater stability for digital assets such as bitcoin, which can ultimately boost adoption among merchants.
If institutional adoption is the key to declining price variability, then there’s reason to believe that the market will stabilize even further in the coming years.
Last month, New York Stock Exchange operator Intercontinental Exchange announced a new crypto venture aimed at boosting adoption at the investor and consumer levels. Around the same time, Boerse Stuttgar t – Germany’s second largest stock exchange – said it will launch a new cryptocurrency platform.
According to Kim, high-frequency trading (HFT) companies could flourish in this environment as new technologies attract more speculators and market makers into the fold.
“Some HFT firms have been trading since crypto 2014, but have limited themselves because the infrastructure wasn’t there. Most if not all HFT firms require a FIX connection at an exchange in order to trade efficiently,” he said, as quoted by Business Insider. “Crypto exchanges haven’t offered FIX connectivity until recently.
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Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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. Sam Bourgi 4.6 stars on average, based on 576 rated posts Sam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets.
Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world’s foremost newscasts. Dogecoin Sustains Growth: 108% Over Two Weeks: Poloniex Adds USDT Pair
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Dogecoin (DOGE) has continued its bullish trend of the past few days with 44% gains for Friday the 31st, and 108% growth over the two week period.
Today’s peak of $0.004467 hasn’t been reached since May 20th, as DOGE rides the waves of a three-month high. Dogecoin’s Two Week Rise
Dogecoin has been on the march since August 14th when the market dip which commenced at the start of August reached its bottom. Bitcoin’s bottom at that time was $5,984, and at just over $7,000 at the time of writing, has gained 17% in the intervening period.
Dogecoin meanwhile was priced at $0.002143 at on August 14th, and in just over two weeks since then surged 108% to a coin price of $0.004467.
That’s higher than the coin price reached even during the spike of mid-July, and there are few, if any, coins or tokens out there that have made such a recovery.
Twenty-four hour gains today are just as impressive, with a 44% price boost over the course of the day, giving Dogecoin a return to the news headlines after months of obscurity.
As covered here yesterday, Doge’s trade volumes saw a considerable boost on the day of August 30th. But those trades have continued to grow into today, rising from $30 million to just over $60 million. Yesterday’s 600% boost to trades pales in comparison to the 2,819% seen over the two week period in question. Poloniex Adds DOGE/USDT Pair
The addition of the DOGE/USDT pair on Poloniex earlier today hasn’t made itself felt as much as expected. Dogecoin is the most traded coin on Poloniex today, but with BTC rather than Tether. DOGE/USDT trades on Poloniex account for just over $50,000 of the daily total, while DOGE/BTC makes up 25% of all Poloniex trades.
Of all the coins newly paired with USDT – Ox (ZRX), Golem (GNT), Siacoin (SIA) and Lisk (LSK), only Ox appears to have benefitted from the pairing, with $160,000 worth of trades coming within the last day. Some of those coins have surged upwards today, not least Golem (13%), but USDT hasn’t been involved.
As per the Poloniex blog post which announced the listings, the additions of the pairs were at the behest of community members:
“While we continue to focus on improving the performance of Poloniex and bringing a curated set of assets to the exchange, we also attempt to implement the top requests of our customers and project developers where possible. In this spirit, we are enabling a new set of USDT trading pairs for some of our currently-listed assets, beginning with 0x (ZRX), Lisk (LSK), Dogecoin (DOGE), Golem (GNT), and Siacoin (SIA).
”
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Loading… Crypto Psycho: Measuring Fear And Greed
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Since the start of this year when crypto prices started tumbling, people have been seeking a simple answer to an equally simple question: what is making prices fall? To those who have suffered through the trama, you may have already thrown up your hands in disgust. But, this is an important question that needs an answer.
After much reading, many studies place the blame on mechanical features. Most of these studies are pretty far fetched. In reality, price movements in crypto bear remarkable similarity to about every other asset category. In each case, we are dealing with human emotions.
Why is it so important to isolate these factors? Because the very cause of losing more than 65% of it s value can also drive Bitcoin back to $19,000. The same is true of most altcoins as well. Academic Fascination
So far this year the academic community has shown a fascination with trying to explain cryptocurrency movements based solely on correlation analysis rather than what actually is causing price movements.
The most absurd of these efforts goes back earlier this year when the San Francisco Federal Reserve teamed up with Stanford University to declare that the advent of Bitcoin futures correlated with the bursting of the Bitcoin bubble. It didn’t seem to bother anyone that there were hardly any Bitcoin futures traded in Chicago in December.
This was not the only example, but in the interest of not writing a script for a TV sitcom, the others will just be ignored. Interpreting Surveys
Applause to the workers as Coindesk for putting together a first rate survey of the crypto community. They do an excellent job of finding and presenting data.
However a big hole still exists in understanding what all the data means.
For starters, 83% of crypto owners are “unaccredited”. This is a key point. It means their total assets are less than $1 million or they earn less than $200,000 individually. Some 84% of these folks check crypto prices more than once a day and over half check every hour. That is a clear measure of their nervous sensitivity.
Successful investors often use data on this group as a contrary indicator of market direction. If we had this data back in May, we could have saved a bundle.
Here is why.
At the end of Q2 2018, 65% of Coindesk survey takers believed crypto prices were undervalued. That is down from the 69% level of Q1 2018. When this falls to something ridiculous like 40%, that will offer a strong crypto buy signal.
Finally Someone Scientific Measures Of The Mind
Skeptics may scoff at this approach as being overly simplistic. After all, with all the available date on things like hashrates, difficulty and mining profitability etc., the secret to price behavior must be far more complex.
Well, according to a Yale University study , Risks and Returns of Cryptocurrency, if you want to make money in crypto, you can forget about hashrates and stuff like that.
Here are their two major findings. Time-Series Momentum Effect (TSME)
This means that when asset or cryptocurrency prices are rising they tend to rise even higher. The authors of the study explain it this way:
“We have designed a simple strategy that says an investor should buy Bitcoin if its value increases more than 20% in the previous week.” “ This method can be useful to predict the best time for investors to buy and sell their crypto.”
Traditional stock investors have another term for TSME. It is called FOMO or Fear Of Missing Out a.k.a greed.
Investor Attention Effect
The second key to making a killing in crypto is what they call the “investor attention effect.” If there is an abnormally high number of mentions of the cryptocurrencies we studied in either Google search or on Twitter, returns go up. Here is how things measure up.
A one-standard-deviation increase in bitcoin Google searches over the course of one week leads to increases in weekly returns of 1.
84% and 2.30% at the one and two week marks.
Under the same circumstances, Ether investors could reasonably expect a 4.36% gain while Ripple investors would reap 10.
86%.
Kudos To Yale
Results of the Yale study tell us that Google and Twitter are a good measures of FOMO.
Unfortunately, they have given us a reliable measure for FOLE, Fear Of Losing Everything. For that the Coindesk quarterly survey says that when almost three quarters of crypto owners believe that prices are undervalued, we should run for the hills, FOLE is coming soon.
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Loading… James Waggoner 4.4 stars on average, based on 101 rated posts James Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto. .
