Hello my fellow steemians and crypto investors,
I’ve been recently hearing a lot of talk about Bitcoin cash becoming more profitable to mine than Bitcoin. Indeed, some hashing power has moved to Bitcoin Cash temporarily and mining profitability is higher on the new chain.
Many are making their bets thinking this could become a trend that leads to the potential overtaking of Bitcoin’s rule in the crypto world.
Why is this a bad idea?
The problem with this short term thinking is that mining difficulty will eventually adjust on both chains. If more hashing power is devoted to Bitcoin cash, the difficulty will automatically adjust up and thus mining on this chain will become less profitable. Also, if less power is devoted to Bitcoin the difficulty will be lower and it will become easier to mine it.
This is what will likely happen with mining profitability on both chains:
We will see several adjustments in the difficulties on both chains until they reach an equilibrium.
Despite the current profitability advantage, most mining pools still mine on the Bitcoin chain. They understand this is a temporary phenomenon and switching would require lots of efforts re-configuring their current equipment so for them is not really worth it.
So, what do you recommend?
I’d recommend holding both coins. Most investors already own Bitcoin cash just by virtue of them holding Bitcoin before the hard fork. Also, Segwit implementation is around the corner and it will bring about a lot of potential second layer solutions to Bitcoin, such as the Lightning Network. Greater mainstream recognition and legislative initiatives are in the pipeline for Bitcoin as well and will soon be announced.
I would say selling Bitcoin proper to increase Bitcoin cash holdings is really a bad idea at this time.
Just HODL both and wait 2020!
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Tell me what you think about this post in the comments below. This is not professional investment advise. I'm not your financial advisor. Only invest money you can afford to lose!
Happy crypto investing!
I agree, suckers play. Either way hold your keys for all bitcoin forks until the leaders becomes so.
We think similarly about this topic I notice. Good post!
What you're leaving out is that the legacy Bitcoin chain gets hammered with high fees and slow confirmation times when its hashpower goes down, while Bitcoin Cash just produces bigger blocks.
There are already over 100,000 unconfirmed transactions on the legacy Bitcoin chain, and ALL transactions go into the next block on Bitcoin Cash, even ZERO fee transactions. This is going to result in the price swinging far into Bitcoin Cash's direction, and making it more profitable even with a higher difficulty.
Yes, maybe you are right, however I don't think that's likely. Also Segwit + lightning are supposed to take care of the high fees and pending transactions. If they don't work I don't really care, I'm also holding Bitcoin Cash as insurance. That's my advise, not to bet on a single coin
great work keeep it up
Thank you so much for making me clear. Actually I was thinking the same. It may be not a good idea investing in Bitcoin Cash :)
dump that BeeaCH
Nice info great good job bro. I'll follow your account to see how you doing. Because i earnings as like you @yash0108
muy cierto, que buen post.
How about XRP?
You are right @cryptoeagle . Betting on Bitcoin Cash is a really bad idea right now ....
Bitcoin Cash is gonna CRASH
I'm not super technical about the minuscule details of Bitcoin difficulty rate but what you've described does make total sense. So for that mean after SegWitx2 anyone who is holding Bitcoin will get equivalent of the new crypto? Kinda like with BCH?
start of 2018 will be real test for bitcoin cash
You're delusional. Legacy Bitcoin is dying RIGHT NOW. You can barely transact on it and you have to pay giant fees if you want to.
Segwit within days or hours, lightning within months...
Just have a little patience and stop buying 1 candy at a time via BTC...
ICO investors are the ones spamming the network at certain times, putting insane fees to buy shit at discount
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I am not touching any of the Bitcoins and am fully invested into altcoins, it seems a much safer place to be right now. Well, I do have a tiny bit of btc.. but that's just in case I spot some superb buying opportunity in altcoins!
Bitcoin Cash is a new thing and early adopters of new trend are most of the time winners
Totally agree! TY :)
I'm relatively new to all of this cryptocurrency business but just made my first investment. Man this is exciting!
somehow I find it similar to stock exchange/share market, with the addition of making some new shares using our brain and computer :D
I actually think a couple of hours ago was almost the best price to sell, counting out the first couple of hours at it's entry.
I don't really see it flattening higher up. It's really an up and down movement until difficulty find it's best level. But at that point Segwit will be activated and BTC should be back to normal.
A highly super volatile Bitcoin Cash is not what you need right now if you want to store your value.
Bitcoin is volatile compared to the dollar. Volatility /= bad
Nice, i like it the your post, thanks
great post
Yes, I think HODLing both at a 1:1 ratio seems reasonable.
Thank You Sir for this great insight!
Great post about Bitcoin Cash... thanks for sharing...
great post keep it up