“Clamor in the East, Attack in the West” BCH Rises as Bitcoin Network Difficulty Drops
Bitcoin network difficulty is going to adjust downward today if everything goes on as planned. It was 24 August that the network saw 3.8% hashrate drop at 6.36 EH. Right now it is around 10.4 EH, over 60% increase in less than 3 months. Meanwhile, BCH soared to 834 USD at press time.
Different groups interpreted the news on their own interest:
Core supporters believes that it’s a total victory and the community is united again. Bitcoin will rise.
Bitcoin Cash supporters believes that the segwit2x backer will join them in on-chain scaling. Bitcoin cash will rise.
Altcoin holders believes that the failure of bitcoin scaling will drive investors into altcoins. Altcoin will rise.
It seems everyone should be happy.
However, the emergence of Segwit2x is a political spin-off of different interest groups and therefore wouldn’t be that simple. It could have been a make-believe attack to gain time and space for the survival of bitcoin cash judging from the market reaction today.
“Clamor in the East, Attack in the West.” It is an ancient Chinese saying to describe tactics in a battle.
In any battle the element of surprise can provide an overwhelming advantage. Even when face to face with an enemy, surprise can still be employed by attacking where he least expects it. To do this you must create an expectation in the enemy’s mind through the use of a feint.
Wu Guanggeng, founder of Bixin, has seen it through:
“After the emergence of BCC on 1 August, seg2x is dead in the water.”
Jihan Wu, CEO of Bitmain, seems very determined to separate bitcoin from bitcoin cash.
“Bitcoin is Bitcoin. Bitcoin Cash is Bitcoin Cash.”
“No, Bitcoin Cash should either remain forever as Bitcoin Cash, or if it needs to rename itself, it can be some other good, but not Bitcoin.”
“No, please stop this. Bitcoin Cash is Bitcoin Cash. We should not confuse it with Bitcoin.”
Charlie Lee, founder of Litecoin, calling on union of the community to develop off-chain scaling solutions. But his argument on Segwit2x backers are refuted by Wences Casares, CEO of Xapo. Charlies said the business model of those companies behind Segwit2x relies on low transaction fees:
“They are in the prime position (customers & funding) to help Bitcoin scale by building out layer 2 infrastructure, which reduces fees.”-Charlie Lee
“That’s not true Charlie. The more expensive the on-chain transaction fees are the more coins Xapo has in custody, the more off-us transactions Xapo does and the more profitable it is. October was our most profitable month ever and, with these fees, November will be even better.”-Wences Casares
That's not true Charlie. The more expensive the on-chain transaction fees are the more coins Xapo has in custody, the more off-us transactions Xapo does and the more profitable it is. October was our most profitable month ever and, with these fees, November will be even better.
— Wences Casares (@wences) November 10, 2017
If the BCH is to maintain its rise, lots of money is required to resist dumping from miners. The long-prep arms race has been finally put to field test but the outcome remains too early to be told.