Bitcoin vs. Bitcoin Cash — Attack or War
The below post is not my original post but is summary from a Pastebin which is a fantastic summary for NOOBs to digest what happened over the weekend. What to expect in near future.
Link to original pastebin
Summary of events, Bitcoin vs. Bitcoin Cash:
--- The Set-up
* It's easy to mine Bitcoin in China - from chip production to cheap electricity – creating a huge concentration of mining power in its territory.
* This mining power slowly accumulated and concentrated into a few hands, partly due to government intervention. It's hard to make money in China without the authorities noticing.
* These hands, we’ll call them "Jihan" as a code name also belonging to one of their leaders, decided that with so much mining power, there’s no reason why they shouldn’t have more significant control over the currency itself.
* They created a new currency, Bitcoin Cash, which purportedly deals with one of Bitcoin’s classic pain points - its inability to scale up and support the increasing throughput on the net.
* The way they tried to achieve this relies on a further concentration of mining power and network control - foregoing some of Bitcoin’s defining characteristics as a decentralized currency.
If anyone has any doubt about this move not being cold and cynical, remember this: Bitcoin Cash is not going to be as decentralized as Bitcoin, and its creators know this full well.
--- The Propaganda
* After Cash was issued as a split from Bitcoin, Jihan and his friends waited until anyone who wanted to sell and get rid of the currency does so. The price collapsed, and most of the larger crypto community ignored the coin.
* The Chinese miners were instructed to continue mining the coin, even at great financial loss, to support a pretension of value and use, minimally sustaining its life. When the price troughed, those who were in the know about the plan accumulated it in large quantities.
* Our plotting friends waited for the Segwit X2 split. They knew there would be a lot of confusion, that Bitcoin's mining power would be split between the two networks, and that the scaling and fee debate would be at the front.
* The split did not come, but the machine was already calibrated and ready. The scaling debate raged on, with those who do not understand the mechanisms enabling Bitcoin to work in a decentralized manner accepting Bitcoin Cash as a real alternative – all as part of the planned PR campaign. If “Bitcoincom says it’s true, it must be so!
--- The Manipulation
* In recent days, since the news of Segwit X2’s demise, the price of Bitcoin was expected to decline. With the value of the S2X coin, previously factored into Bitcoin, priced between $1000-2500 in future contracts, evaporating, it was only a matter of time. To push this along, a timed sale of Bitcoin, from the huge stock available to the conspirators, struck the market in force.
* The people involved have tremendous financial power. Just as it was easy to push the price of Bitcoin down, such was it easy to pump the price of Cash up.
* Concurrently, massive Chinese mining power has switched to work on Cash; at present, hashrate is almost equal between the two networks. Meanwhile, the missing mining power for the Bitcoin network has made it much slower.
* The Bitcoin network is also undergoing a spam attack. Anyone trying to send Bitcoin is forced to wait long hours even using high fees; there’s now a queue of more than 100,000 transactions awaiting approval.
* Many Chinese exchanges are listing BCH, Bitcoin Cash, for trading against Altcoins as the base currency in an attempt to make it the new standard, as BTC has been to date in all exchanges.
* Anyone who sees and experiences the above, all the while seeing the enormous and rapid price change, gets struck with FOMO and hurries to buy Bitcoin Cash.
* The price increases, Jihan and his group of friends cash out making ridiculous profits after having spent many resources on this plan for the better part of 2017, and laugh in everyone’s faces.
***
In a few hours, Bitcoin Cash’s mining difficulty will increase fourfold; To still be profitable to mine, Cash will need to be priced at a minimum of 40% of Bitcoin. It will be interesting to see what the miners do at that point, when Bitcoin becomes more profitable to mine again. One po
ssibility is that this will mark the end of the pump and everything returns to normal (although it is doubtful that Bitcoin price will continue increasing any time soon), but it is also possible that the strong reaction by the market and community may lead to a situation sustainable enough to lead the manipulators, who perhaps were initially only interested in a masterfully coordinated pump & dump, to try and take the reigns all the way and push their centralized Bitcoin onward. Someone did pay more than half a Bitcoin for a silly clone of it today, after all.
Bitcoin does not have a mechanism for quick mining difficulty adjustments, common today in most of Alts (and soon in Cash). If miners continue abandoning it, the network will be sluggish, or even paralyzed completely, for months ahead and until the next automated difficulty update. This is the nightmare scenario of this attack – a slow death to Bitcoin while a currency that looks like it to most, but is actually controlled by a handful of conspirators (or the Chinese government?.. ) takes the lead.
Our white-horse knights coming to the rescue may be Wallstreet traders, who've been looking for a way to enter Bitcoin and financially take control over the currency. They an infinite capacity to buy Bitcoin, and will be happy to take it from anyone lost to the propaganda. They’ll give a fight to the Chinese, and perhaps save the fate of the decentralized currency. And while it’s not clear which of these two forces is more of a bad-guy in our usual stories, at least the Americans will support the real coin.
However, as befits a decentralized currency based on the good will of a community spread worldwide, the real way to prevent this catastrophe is to spread the above information. It is your duty to ensure that everyone understands that this is ugly manipulation, a hijacking of one of the most beautiful things happening in the world in recent times, and to explain in all directions why Bitcoin Cash, is not, and will never be, a real substitute for Bitcoin.
By Dor Konforty, CEO and founder at SynereoFrom Reddit:
Another aspect about Roger Ver for the noobs which again summarizes that this is not the first attack on Bitcoin, but just one of the many that have happened in past years and about to come.
The content:
Ver is nothing but a infamous scam artist. He has consistently tried hostile takeover attempts such as Classic, Unlimited, BCH… and been mixed up in Jihan’s scams btc1, 2x.
He pushes them on his scam website bitcoin.COM (it has nothing to do with Bitcoin whatsoever, just his scamcoin).
We’ve seen his shenanigans many times before, along with a flood of disinformation and propaganda pushing his get-rich-quick scams.
Here’s something from back when Unlimited was paluging legit crypto forums all over the web (this sub included), just like his latest BCH is now:
21.06.2017
It has been known for a long time that this latest scam of Roger Ver’s (xt, classic, now unlimited) have no technological value.
This latest attempt, Unlimited coin, is written by a handful of completely incompetent “devs”, as has been abundantly demonstrated, again and again! The links below are just a beginning.
The Bitcoin Community is well aware, and nobody in their right mind will turn Bitcoin over to this snake oil salesman Ver and his ridiculously broken software teams. Not to mention the shady mining concerns (hello Jihan & Co) that supported it before it became so blatantly obvious that it was Dead On Arrival.
Some background on the dangers of this Unlimited nonsense:
Even more damning, a complete rundown of the blatant, wilful scam that is Unlimited:
Thanks to /u/sound8bits for this excellent writeup, and plethora of linked sources:
The Astounding Incompetence, Negligence, and Dishonesty of the Bitcoin Unlimited Developers
As if that was not enough! (thanks to /u/stringliterals for the excellent writeup and links.)
Add to this the Damning evidence on how Bitcoin Unlimited pays shills.
Roger Ver has no shred of integrity, honesty or trustworthiness in him. He and his cohorts such as Jihan & Co are shunned with extreme prejudice by the Bitcoin and Crypto community, as well as Open Source in general, for for their destructive practices.
Just as his latest hijacking attempt, Unlimited is, Jihan’s 2x hijack attempt is,
as well as the cesspools of disinformation and propaganda they use to organize their paid brigading (hello /btc).
Prediction Segwit2x failure, BCH Pump and BTC Attack
Finally the most important link that I wanted to share was that this was not someting that came suddenly and was carefully planned, I have watched parts of it in /r/btc and the below pastebin is a good prediction in July 30 of what was to come, which we are seeing right now and the situation that may follow in future. And one has to remeber that big blockers as they are called were planning it since long time and now all of this is falling into place.
Traders, certain information has come to my attention that is causing me grave concerns and i feel it is my duty to warn each and every one of you.
We all know the scaling drama has caused a huge rift, resulting in bitcoin forking into the soon to be "Bitcoin Cash".
I know many have large holdings and savings in bitcoin, and are 'hodlers' and will never sell, so when the selling starts, you may lose everything if you don't also sell.
Gentlemen, this is certaintly not going to be gentlemen.
Certain information has come to light from back room channels, sources i cannot disclose ~ even writing this post will probably reveal my source - but i feel by gods will, I must warn you all.
Selling is coming. Selling the likes of which hasn't been seen since MtGox era.
Already as i type this, battleships of bitcoin are being shorted on all major exchanges.
Gentlemen, The enemy, the big blockers, have colluded and joined forces. The chinese, Jihan & co have put together a plan to replace bitcoin with bitcoin cash.
The plan goes like this:
Chinese miners (f2pool, antpool etc etc) have organised with major exchanges (via/huobi/okcoin etc) to support and launch bitcoin cash.
Initially they will let everyone who wants to sell, sell.
Once the coin has bottomed out, and everyone who wanted to sell has sold, they [chinese miners/jihad/chinese exchanges] will begin accumulating lots and lots of bitcoin cash.
They will then begin to pump the price to around 0.1 BCC/BTC - 10%
The big pools won't mine it ~ they will let the smaller pools see the returns from mining this expensive, but low difficulty coin and start mining it.
Later, the larger pools will join, and as we know, jihad has ALOT of hashing power, their plan is for bitcoin cash to have more hashing power than bitcoin ~ and lets be honest, once t he chinese move over, that is pretty much it.
Around this time, the 'hard fork' section of segwit 2x is not going to happen ~ it never was - Bitcoin cash will then be seen as the original NYA coin..
At that point in time, Bitcoin cash will be on all major chinese exchanges, possibly some western exchanges aswell, and have majority hashing power. Western companies & other merchant providers (BitPay - @Spair) etc - paid off by bitmain etc will go along with the new bitcoin cash narrative and will push for the 'bitcoin cash' to be called 'bitcoin' on all their platforms, leaving only coinbase et all which will then be the odd ones out..
Now comes the scary part, The old bitcoin, the bitcoin we know and love, is going to get DESTROYED.
What determines a coins success ? It's market cap.
Big old school blockers and miners are going to dump bitcoin back to the bottom, they will take literally billions and billions of dollars out of bitcoin. They will use the money to fund the marketing, and development, or 'bitcoin cash' - Think, Bitcoin core - FIRED. Think - forbes article, "why bitcoin miners and companies are moving to bitcoin cash" - think - "Why the market is chosing bitcoin cash as bitcoin not bitcoin core" - They wil lsay the market has spoken, that people have voted with their money.
Right now, massive huge shorts are being built, already on finex, shorts are at 32k - not seen since $200 these kinds of numbers of shorts, and its climbing, all the t ime, consistently, they have ALOT of coins to short.
The most painful kind of selling, is where it never bounces and if you remember MtGox from $1000 to $70, you'll remember what no bounces feels like ~ and I can tell you. This won't be any better.
Good luck all, remember - fair warning.
Below is I grabbed, i also have some slack and telegram logs, I will sort them out later when i get back, i just want to confirm what I can safely disclose first for my own protection.
Email from [alice] to [bob] - http://imgur.com/a/FcZIpFinally
Today if one sees the number of unconfirmed transactions one has to feel how bad the situation is. Even Chinese corporate miners are out of Bitcoin mining and doing BCH mining to get ready which is understandable given that already China cracked on Bitcoin exchanges and want to build a wall around Bitcoin Mining which it has already done in some ways. The key support for Bitcoin mining in China has been the cheap coal and electicity supply and the infinite labour and the Industrial brilliance few of the Chinese corporates have got over time. And most importantly the support that comes from the Government as there are thousands of jobs that Bitcoin provides in the most poorest communities of Northeast China. But now the battle of control raging to control the future of Bitcoin or the attack to steal the lagacy of who is the real Bitcoin, end of the day we are seeing a centralized concentration of mining and BCH may be one of the most successful attacks on Bitcoin yet.
