Bitcoin Cash Fork Crashes Market- is Craig Wright a Government Pawn to Destroy Crypto?


Drama surrounding the impending Bitcoin Cash hard fork scheduled for today has sent the crypto markets into a nosedive. Bitcoin dropped over 15% and Bitcoin Cash lost 20% in intraday trading yesterday on the news. Shockwaves ricocheted through the cryptocurrency landscape disrupting the relative stability felt during the last four months. Bitcoin, in particular, was starting to appear to have matured past these types of intense volatile movements. So why then did a market that has weathered news good and bad for months with relative disdain suddenly make this dramatic move?

Bitcoin Cash was created by a hard fork from the Bitcoin codebase in August 2017. For those of you who do not follow the crypto markets closely, a hard fork is when an existing blockchain is copied and replicated as a new chain, sometimes implementing changes to the code base that the developers think will improve the new chain. The existing holders of the coin that is forked receive coins in the new chain at the time of fork.

While some hard forks create new value for the owners, many of them are inconsequential. However, there also is the potential for hard forks to cause harm to the underlying network by dividing the community of users, and turning committed developers into contentious adversaries.

“Hard forks, by their very nature, tend to divide a community of users who are deeply invested in the journey of a cryptocurrency. It is vital that holders of Bitcoin Cash within the crypto sphere are adequately prepared and fully understand the intricacies of such developments.” said Nick Cowan, CEO of the Gibraltar Blockchain Exchange (GBX).

More than ever this is the case in the Bitcoin Cash split because of a provision for replaying that essentially creates double spending of transactions in order to only allow one chain to survive. This creates a set up where the mining consortiums will start to attack one another with rented hashpower to try and shut down the competing blockchains, in a winner-take-all battle of nuclear proportions. Will this spell a catastrophic drop in cryptocurrency prices? Only time will tell, and that time very well may be today. Litecoin creator Charlie Lee tweeted yesterday, “What happens when there’s an ideological entity that has the means to 51% attack a competing fork? We will find out tomorrow!”

Bitcoin Cash was born out of an argument against the main Bitcoin community’s decision to implement a code verification process called Segwit, short for “segregated witness,” a code base added o increase scalability of Bitcoin. Certain members of the community argued loudly that Segwit would reduce security, and this argument split the Bitcoin community. Many of the members that stayed in the Bitcoin community argue that the Bitcoin Cash split was because the miners on the network were upset about losing revenue to Segwit and the discussed implementation of Lightning Network, as both of these lower mining revenues. But the members of the Bitcoin Cash community argue that their intentions are purely to maintain the true vision of Satoshi.

Who is this Satoshi? They are the pseudonymous leader of the cryptocurrency revolution. The identity of Satoshi Nakamoto has remained a highly contentious secret, and I use the pronouns “they, them and their” in this regard, as nobody knows if Satoshi was male, female, or even a group of people.

One of the most prominent founders of Bitcoin Cash, Craig Wright, has come out in the past claiming he is Satoshi Nakamoto. But he has no legitimate proof of this, and many have disputed this claim. One can clearly say he most certainly lacks the technical skills to have been Satoshi as he was caught plagiarizing a “Hello World” tutorial when trying to prove he could code. Thus many in the Bitcoin community have given him the name “Faketoshi” instead. Yesterday, whatever-you-want-to-call-him, threatened on Twitter to crash the price of Bitcoin if miners refuse to support his Bitcoin Satoshi’s Vision (BSV) fork off of Bitcoin Cash.

Bitcoin Cash was born out of an argument against the main Bitcoin community’s decision to implement a code verification process called Segwit, short for “segregated witness,” a code base added o increase scalability of Bitcoin. Certain members of the community argued loudly that Segwit would reduce security, and this argument split the Bitcoin community. Many of the members that stayed in the Bitcoin community argue that the Bitcoin Cash split was because the miners on the network were upset about losing revenue to Segwit and the discussed implementation of Lightning Network, as both of these lower mining revenues. But the members of the Bitcoin Cash community argue that their intentions are purely to maintain the true vision of Satoshi.

Who is this Satoshi? They are the pseudonymous leader of the cryptocurrency revolution. The identity of Satoshi Nakamoto has remained a highly contentious secret, and I use the pronouns “they, them and their” in this regard, as nobody knows if Satoshi was male, female, or even a group of people.

One of the most prominent founders of Bitcoin Cash, Craig Wright, has come out in the past claiming he is Satoshi Nakamoto. But he has no legitimate proof of this, and many have disputed this claim. One can clearly say he most certainly lacks the technical skills to have been Satoshi as he was caught plagiarizing a “Hello World” tutorial when trying to prove he could code. Thus many in the Bitcoin community have given him the name “Faketoshi” instead. Yesterday, whatever-you-want-to-call-him, threatened on Twitter to crash the price of Bitcoin if miners refuse to support his Bitcoin Satoshi’s Vision (BSV) fork off of Bitcoin Cash.

Craig Wright Twitter Post

This tweet was just as direct of a market manipulation as the one that had Elon Musk removed from his position as chair at Tesla. But there seems to not be the same legal liability for the fake leader of a decentralized digital currency movement, so his rants will continue to go unchecked.

From a logical standpoint, there is no legitimate reason for this fork. The stated logic being that a larger block size for Bitcoin Cash is somehow necessary for long-term scalability. The boat metaphor is the best explanation I have heard about the lack of a need for the Bitcoin Cash fork. Essentially the Bitcoin boat was like an overcrowded fishing boat, so they made the equivalent of a yacht in Bitcoin Cash. However, the yacht is only half-full now, as only half the party came over, and Craig Wright’s new BSV split is like moving half the yacht party onto a cruise ship instead, which will feel decidedly empty once launched. Anyone rational knows that bigger is not inherently better for all things in life, and every programming decision has tradeoffs.

With Craig Wright’s continual outbursts of this sort, one has to wonder if he is the real Donald Trump masquerading as the real Satoshi Nakamoto. Seriously though, Craig Wright’s contributions to the cryptocurrency community have reached such epically dangerous proportions lately that it doesn’t seem out of line to wonder if he is actually a plant by some government entity to bring down crypto. His actions such as insisting on splitting an already divided community, then forcing the price down with threatening tweets, are market manipulation at the most base level. One has to wonder if he is mentally unstable, or if there is some nefarious goal behind it all that is worthy of a conspiracy theory.

About Crystal:

Crystal Stranger was banned by Craig Wright on Twitter for trying to rationally discuss blockchain technology concepts with him. She is author of The Crypto Island Tax Guide, has more than 15 years of tax experience, with a focus in international tax, as well as hacking code together as a hobby for even longer. She has been writing about Cryptocurrency tax and regulatory issues since 2014. Wanting to help her tax clients who struggled with regulatory compliance, she founded PeaCounts, a blockchain accounting software company building a revolutionary new payroll system using the token PEA. This new, transparent payroll will promote fair wages and eliminate the need for black market labor.





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