As I analyze it, I come to the conclusion the people behind Bitcoin Cash are trying to pull off a major heist on Bitcoin. As I watch the price action today, I have noted several things that indicate a robbery:
The vast majority of the trading volume is occurring in one exchange in Korea (Bithumb). So although the price ascent from a volume perspective looks broad-based, it is concentrated in one location. I also noticed when this exchange had an outage, the price of BCH plummeted from 2,500 down to around 1,200 in a matter of minutes. When the exchange came back up, the upward march of BCH resumed.
Several bitcoin evangelists have come out suddenly and started supporting BCH, whereas most of them never uttered a word about it until this weekend. Roger Ver has been consistently been pumping BCH, but all of a sudden we are hearing from Eric Voorhees, Calvin Ayre, John McAfee, Gavin Andresen, and several others who are all of a sudden appearing to be BCH supporters. (Thank goodness my hero Andreas Antonopoulos struck a more neutral tone, which actually is fair.)
The timing this weekend between the Segwit2x cancelation and the Bitcoin Gold (BTG) hardfork is extremely suspect, as it represents a time that BTC would already be showing two elements of price weakness. One element from supporters of Segwit2x abandoning BTC, and the other element from potential investment away from BTC into BTG.
There was an unusual slowdown in network traffic in BTC with 100K+ transaction backlogs. It may have been from spam attacks of multiple small BTC transactions. This further could spook BTC investors into thinking BCH is a better alternative. It all seems coordinated.
Two other general points around BCH that make it an ideal vector for these bad actors are:
By having a larger blocksize it can offer fast transactions and lower fees in the short term, but that is a veiled power grab away from keeping bitcoin decentralized. In the future, only large well funded organizations with gigantic data centers will be able to store the entire blockchain. Therefore a few large miners will control the coin and the code. These miners are the very same groups that are promoting BCH as the "Real Bitcoin."
Lower fees and faster transactions are BCH's mantra, but this is already available through existing altcoins such as Litecoin, without running gigantic blocks. That must therefore just be the elevator pitch used to obfiscate what is actually going on.
These bad actors can't be trusted with the peoples' funds and this heist needs to be stopped in its tracks. I will be staying away from BCH and hodling BTC.
- Kalienx777
