The last 24 hours in the crypto-market have stunned many traders and left them speechless. This is due to the fact that Bitcoin (BTC) fell from levels of around $6,300 to a new low of $5,544 in a matter of hours if not minutes. The total crypto market capitalization also fell from levels of $209 Billion to $180 Billion in the same time period.
BTC is currently trading at $5,660 and down 11% in the last 24 hours. The total crypto market capitalization now stands at $186 Billion. All other cryptocurrencies are bleeding heavily also.
The Bitcoin Cash Hash War
One explanation of the current turmoil in the crypto-verse, is the ongoing Hash Wars between the Bitcoin Cash (BCH) community as they prepare for the upcoming BCH hard-fork. Both sides of the ‘battle’ – Bitcoin Cash ABC and Bitcoin Cash SV – have vowed to take down the other using all means possible.
The ABC version is supported by the CEO of Bitmain, Jihan Wu and Roger Ver. The SV version is backed by Craig Wright who claims to be the real Satoshi Nakamoto.
Relocating Hash Power from BTC to BCH ABC
A few days ago, Bitmain CEO Jihan Wu was reported to have mobilized 90,000 mining machines to gain an upper hand in the hard-fork that is scheduled for today. Jihan is quoted as stating the following with regards to the ongoing BCH crisis:
I have no intention to start a has war with [Craig Wright], because if I do (by relocating hash power from BTC mining to BCH mining), BTC price will dump below yearly support; it may even breech $5,000. But since [Craig Wright] is relentless, I am all in to fight till death!
Roger Ver’s mining pool of Bitcoin.com also announced that it will be redirected hash power from Bitcoin to Bitcoin cash ABC for one day.
Craig Wright’s Response
Craig Wright seemed unfazed by the attempts of both Jihan Wu and Roger Ver. Mr. Wright took to Twitter to explain that for a winner to emerge, there has to be continuous mining of Bitcoin Cash. One day will not win the battle. His tweet can be found below.
Craig Wright also stated that the fall of BTC does not phase him. He made this statement as he warned BTC miners from switching to Bitcoin Cash. His tweet had this to say:
To all BTC miners…
If you switch to mine BCH, we may need to fund this with BTC, if we do, we sell for USD and, well… we think BTC market has no room… it tanks.
Think about it. We will sell A Lot! Consider that…. And, have a nice day (BTC to 1000 does not phase me)
In conclusion, and with the BCH hard-fork only hours away, we might see hash power continue being redirected from BTC towards Bitcoin Cash. What this means is that there will be a possibility of there being less miners available to sustain the Bitcoin network as the hash wars continue.
Secondly – and as stated by Craig Wright – we might see a massive sell-off of BTC by both sides to finance the war.
Both scenarios are on the minds of savvy and keen crypto traders who have probably fled to stablecoins till the hash wars provide a winner and more stability in the crypto markets.
What are your thoughts on the ongoing Bitcoin Cash situation? Please let us know in the comment section below.