The Bitcoin Cash hash war mentioned in a previous blog post is largely over. Bitcoin Cash’s hard fork variants have failed to destroy each other, although they still vow to fight to the death. Nonetheless a winner has been declared. Roger Ver’s Bitcoin Cash ABC has claimed the title of Bitcoin Cash. Craig Wright’s version has been relegated to the name Bitcoin Cash Satoshi’s Vision (BCHSV), and is traded on less exchanges than Bitcoin Cash (ABC).
Even though Roger Ver can claim this as a victory, the real loser is the entire cryptocurrency community. The war between both sides of this hash war caused the entire cryptocurrency market to drop by over 50%.
Investor confidence has been shaken, reinforcing an already brutal bear market. A large majority of retail investors have left and are angry at the cryptocurrency community. It’s unlikely they’ll come back.
Roger Ver may have won, but it’s definitely a Pyrrhic victory. Not only did the entire cryptocurrency market crash, including his own Bitcoin Cash (which was one of the bigger losers in the massive decline), but he had to fund the victory out of his own pocket. He paid cryptocurrency miners to join his side of the war, at great expense to himself.
This crash has had widespread implications for the cryptocurrency community. Not only are most HODLers and investors hurting right now, but the cryptocurrency mining industry is nearing collapse as well. Bitmain, the largest crypto mining company, has confirmed layoffs. There are also rumors that their CEOs will soon resign.
This is definitely the winter / bubble bursting of crypto. How far will it go? Time will tell. This crash is unlike any in crypto’s history.
Personally, at the bare minimum I believe it will take six months to a year to recover, if not much longer.
The bear market and subsequent crash are the biggest crypto news of 2018, with both lasting longer and being more severe than most anticipated.
Numerous cryptocurrency projects have been shut down in these rough market conditions, and ICOs have largely dried up. This is not necessarily all bad – this means the strongest and most promising projects are largely what’s left.
Craig Wright has set his Twitter profile to private. His tone in what he’s said online is of a man whose dreams have been destroyed, and who doesn’t care about anything anymore.
There are rumors he’s planning something else though; time will tell. Considering how irresponsible this hash war has been, with any luck both sides have drained their resources.
I understand wanting to have control of an altcoin. However if you’re a proponent of cryptocurrency it shouldn’t be at the cost of shaking belief in the very field you’re working in.
Additionally, is your altcoin truly decentralized if it requires two centralized figures with the backing of billionaires to determine its future?
A close examination of the Bitcoin Cash hash war shows some inherent risks to the decentralization of all cryptocurrencies.
A way to become resistant to any one centralized figure or group needs to be established, otherwise the claim of decentralization is a myth.
This hash war should be a lesson and warning to all cryptocurrencies. They need to be wary of any group that gets too large and holds too much sway over them.
Hopefully 2019 will be a year of consolidation and introspection for the cryptocurrency space.
There are healthy and unhealthy corrections. A pullback was always coming, but it’s alarming that it’s lasted this long.
It’s thrown the cryptocurrency space into a cloud of uncertainty, and uncertainty breeds bearish conditions.
Has bitcoin & co found its base here, or will they fall lower? Only time will tell.
It’s good that the bitcoin cash hash war is largely over, however investor confidence remains shaken.
Extremely good news needs to come out, perhaps on the technical side, to resurrect people’s optimism.
And before that we need a period of stability. We have neither of those at present.
Here’s hoping 2019 ushers them in!
Will Salisbury is the co-founder of Blockchain Decrypted and full-time cryptocurrency trader. He also hosts the Blockchain Decrypted podcast, and when he's not talking or writing about blockchain technology and cryptos, he likes to play games and relax in his home state of Michigan.
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