The Winners of the Bitcoin Fork Are The Large Mining Farms; Not The Users and Developers

in #bitcoin7 years ago

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I've remained silent about the whole controversy of mining centralisation, Bitcoin's network congestion, and the possible solutions to the issues users and developers have been facing for a few months now, given the rise in both Bitcoin's value and popularity, and digital currencies as a whole.

One thing that stood out to me was the discovery of Bitmain's ASICBOOST hardware, which exploited the way blocks can be mined. Ironically, it contributed to the congestion of the network as the centralised mining hardware manufacturer was essentially mining blocks with little transactions hashed, despite being rather vocal against the possibility of SegWit, while supporting a hardfork of Bitcoin and block size increase, sheering away from the current 1MB size.

Now that Bitcoin has forked into some useless clone, and Bitcoin awaits SegWit activation, these shady mining farms now have two versions of a digital currency giant to mine; both are being largely backed, so neither will be dying out any time soon.

I think it is obvious who really wins here, and just a hint: it isn't the developers, users, or merchants. It's the miners that produce and sell hardware, and use that hardware for themselves. Bitmain and other mining farms can now push their operations into two versions of Bitcoin; at this point, it is safe to say that they will make a nice profit through both in time.

Before this, there was no other SHA256 coin worth mining. For people like Jihan Wu, this was never about fixing Bitcoin for the masses, it was about broadening their options and generating easy money. This is only one of many steps into the world of centralising Bitcoin mining.

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Users definitely benefited. Right now, a BTC from 48 hours is worth more in total than before.

Why? Because it's not a zero sum game. No voluntary trade is a net-zero sum gain. That is how value is created.

Yeah, that's true.

Although in the long run, this feels like a game in which those mining farms that were for a hardfork now have a larger advantage in Bitcoin mining.

You could also say that some companies like Coinbase benefited from it too. By not "supporting" the fork, they could redeem all of the Bitcoin Cash with Bitcoin to sell for a quick profit.

Also known as "Unjust Enrichment" which is a crime.

It's my understanding that they are being threatened with class action lawsuits to support the forks BCH value

I just say: Hold the Bitcoin Cash (BCH) for the moment and see what happend in the future !

What another good friend says: In fact, bitcoin holders saw the total value of their two separate bitcoins reach a new all-time high today! At the time of this writing, bitcoin is trading at $2,735. And the newly minted Bitcoin Cash coin is trading at $380.Bitcoin and Bitcoin Cash, combined, then have a value of $3,115 which is an all-time high for bitcoin which hit a high of $3,018.54 on June 11th.

Amazing post @ namiks have a happy journey here
i just upvoted your post and following you. you can follow
me at @zeeshankhan .i hope you will follow me back

Is there no longer a finite amount of blockchain to be mined? Are all future mining operations and expansions to the blockchain put simply devaluating bitcoin by increasing supply? Whereby only those with the capacity for mining operations would see returns on said expansions? I was under the impression that with a finite amount that BCH would be worth more due to a lesser supply seeing as how less miners are mining it. Perhaps it's best to buy now while it is cheap and sell after heavy mining operations begin?

It's tough to tell. But it's certain that there are agendas here that we are not aware of just yet.

Anyone here see what went down with bittfinex and their buy your own short position with cash then withdraw before the fork happened to essentially get free bch and to not get stuck with the decreased BCH coefficient? http://hackingdistributed.com/2017/07/29/bitcoin-impending-accounting-disaster/ I'm new and not sure of linking policy. Is it ok to post this?