Happy Thanksgiving, Bitcoin Legacy

2017-11-14T18:05:00-00:00

An early Happy Thanksgiving, Bitcoin Legacy!

For those who are wondering what may be happening with BCH, why the hash rate has dropped, etc.: fear not. It's all going according to plan. There is just one last thing to do.

As some have speculated, the goal now is to clear the BTC mempool. The easiest way to do that is to drive as much hash power as possible to the BTC chain and process all those backlogged transactions. This means two things: BCH difficulty will continuously trend downward, and (typically) price will follow. HOWEVER, something else is amiss.

If you look to all the major exchanges, whales are holding the price of BTC and BCH in lockstep with each other, as best they are able. They're doing this utilizing those cheap BTC they picked up last weekend and BCH the weeks prior. By holding the prices in lockstep even as the difficulty plummets for BCH, they're artificially lifting the profitability for mining keeping it just shy of BTC's.

But there's a snag. In just about 10 days' time, BTC will have a difficulty adjustment. With all that recovered hash power, the only way to adjust is up. So the BTC difficulty spikes when the mempool is cleared, and BCH has been just a trickle for 10 days, certainly well more than 144 blocks. And now it becomes more profitable. And everyone in North America is distracted with family, enjoying turkey and wine as their fortunes get locked-away for all eternity in a dead blockchain.