Bitcoin, Crypto currency, Blockchain

Bitcoin Cash vs. Bitcoin: BCC just “Pump and Dump”?

fc1e71300462d223ae5d4eebcd64d8be - Bitcoin Cash vs. Bitcoin: BCC just "Pump and Dump"?

As you have observed and have read, there was in the last days quite a mess with extreme price increases for Bitcoin, Cash and a extreme price drop of Bitcoin. Surely you have heard of the rumors and Reports that Bitcoin Cash could be the “real” Bitcoin. If you’re wondering how the development could come and what the future of Bitcoin means, then read. We try to explain it!

The facts from the weekend: BTC vs. BCC – Martkapital, Hashrate, transaction, …

While the market capitalization of Bitcoin Cash from 10 to over 31 billion dollars has been increased, is the of Bitcoin from 124 to 105 billion dollars in favor. With the peak value of 31 billion Bitcoin Cash had fallen even briefly Ethereum of course 2, which could have to this time “only” a market capitalization of over 30 billion euros.

Of course: Time trigger of the crazy price fluctuations was the cancellation of the Segwit2X Updates of Bitcoin. As a result, the price of Bitcoin fell to a low of 4.826 Euro and thus has a whopping 27.5% of the all-time high on 7. November lost. At the same time, the Bitcoin Cash put on a Rally of 538 Euro on 9. December at 1.798 euros (maximum value). The markets were on the weekend, a high volatility and the prices fluctuated enormously. With the current state (13.11.2017) has settled the original Bitcoin again at 5,500 Euro, Bitcoin, Cash at around € 1,100.

The Hashrate of Bitcoin Cash is at the weekend, also a stark upturn experienced. Thus, BCC has clearly gained in Mining Power. How to, overtook Bitcoin Cash its major competitor, Bitcoin, and even for some time. The cause was that some of the Miner to Bitcoin exchanged to Cash, due to the higher profitability as a result of the rate increase.

Open transactions at the Bitcoin: The so-called “Mempool” of Bitcoin, a kind of in-between memory, in which all of the unprocessed transactions for as long as stored until the transaction in the Blockchain, grew, according to dramatic 137.000 transactions. The consequence of this was that each of the transactions of Bitcoin needed at this time for a very long time to be released. On the other hand, increased transaction fees of BTC, therefore, exorbitant. For a Bitcoin transaction is ten dollars were, on average, due, while, the lag of the Bitcoin Cash in of only 20 cents.

Unsecured background information, and rumors

In the Internet rumor, that the staging of the Bitcoin Cash as the “true Bitcoin” after the cancellation of Segwit2X was long planned in advance, spread on the weekend. It was read in various unsecured sources of that unknown people have been waiting for from the environment of Bitcoin Cash only at the right moment, Bitcoin is plummeting. This moment is the cancellation of Segwit2X.

The Plan might have looked like the following: Bitcoin is Cash, it must be the “real” Bitcoin. This is absurdly pumped a lot of capital in the shortest amount of time in the Coin and at the same time Bitcoin Manipulation into Chaos. In the result, the fear of investors is exploited “to miss something”. This pull out their capital from Bitcoin and trade it in BCC. Price and market capitalization increase extremely. For Miner, it is to remove the now lucrative Bitcoin Cash. It comes to change. Or So the Plan might have looked like. Evidence and secured sources, there is not but!

Another staged part of the Plan it is supposed to be, to influence the Mempool by means of Fake transactions in order to drive the open transactions and the fees referred to above. As it was, had generated the bulk of the transactions artificially. The majority of the transactions was well in the range of 5 to 10 dollars. A rather unrealistic amount, if it is assumed that Kryto-investors exchange your money of Bitcoin in a Bitcoin Cash. Also rather unlikely to be a “natural” explanation, such as the mass-user, Bitcoins have been used to pay in the “real world”. Given the high transaction and waiting times, this cost is from my point of view rather unlikely.

Also I have read that the majority of transactions came from South Korea, that typically, as with other crypto-currencies on a Pump-and-Dump might be a sign.

Back to the facts: detachment of Bitcoins as a reserve currency at all possible?

Whether this theory is true, and we don’t want to judge. Ultimately, everyone must make for himself. The fact is that the theory has been discussed on the weekend big in the Internet. Not “was visible that Bitcoin is untouchable”. A solution to the scaling problem, possibly by means of a Lightning Network seems more urgent than ever.

Nevertheless, a detachment of the Bitcoins seems to be, as a reserve currency, in my view, in the short term is rather unlikely. For this purpose, among others, all Exchanges would need to participate jointly, the offer so far as the main exchange currency Bitcoin.

Finally, in my view, very interesting (translated) statement from David Sønstebø, founder and President of IOTA , which we have found on Cointelegraph:

“The entire Bitcoin / Bitcoin Cash Drama and the Fork fiasco show how stagnant Bitcoin is both as a technology and as a Community, and how the centralized Miner on the market can be manipulated. In addition, it clearly shows the limits of the Blockchain architecture.“


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