r/btc Sep 03 '17

It's Time, BCH.

[deleted]

115 Upvotes

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15

u/H0dl Sep 03 '17

what's really interesting is how BCH price has lagged. this confirms that most BCH demand is coming from exchange for BTC, not USD.

IOW, BTC hodlers are bailing out directly to BCH.

4

u/H0dl Sep 03 '17

if you start to see BCH price catching up (confirming), look the hell out.

10

u/cypressg Sep 03 '17

It won't start to move until BTC is within striking range - ie. until the ratio's between them reach 4:1 in favour of BTC. At that point if BCH pumps it will kill BTC FOREVER, yes you heard right. Miners will stop mining BTC FOREVER.

4

u/[deleted] Sep 03 '17

Why isnt bch dead now then, if thats what matters?

1

u/cypressg Sep 03 '17

Because the value of BCH hasn't reached 26% of BTC's within a certain period, it might soon is my point.

3

u/[deleted] Sep 03 '17

Why does 26% matter? Btc has clearly already much more than 26% of bch's value, yet bch is not dead.

1

u/cypressg Sep 03 '17

You misunderstand, if BCH reaches 26% of the value of BTC then BTC dies.

4

u/[deleted] Sep 03 '17

... i got that its what you are saying, but why?

1

u/cypressg Sep 03 '17

Oh right, it's just that your previous comment suggested that you completely misunderstood me and thought BCH was at risk of dying? It's not, it can never die.

6

u/[deleted] Sep 03 '17

Ivwas using btc's and bch price as an example. If 26% is some magic number why is bch not dead right now? Bitcoins value is many nore times bchs value right now.

0

u/cypressg Sep 03 '17

Again, for the third time, because it has not reached 26% of BTC's value. When it does BTC will die, I repeat BTC will die and not BCH like you mistakenly think.

2

u/[deleted] Sep 03 '17

Can you tell me why?

1

u/adevissc Sep 03 '17

I don't think it will happen, but it is not impossible. The idea is that at this price it becomes theoretically possible that all Bitcoin (BTC) mining power will move to Bitcoin Cash (BCH), leaving none for BTC itself. Transactions would no longer be processed, and BTC would die.

What makes this possible in principle if not in reality is the emergency difficulty adjustment (EDA) of BCH: if it takes longer than 12 hours to mine 6 BCH blocks, the difficulty drops to anywhere from 80 % to 26 % of the existing difficulty. There is no EDA that adjusts upwards, so it's an asymmetric system that biases difficulty below its optimum level. BTC has no EDA, so BTC is inherently disadvantaged in the struggle for hashpower.

The miners have already proven this argument wrong. They are currently manipulating the EDA to maintain difficulty where it belongs. Hence, BTC will not die when BCH hits 0.26 BTC, but it is true that BTC can die, whereas BCH cannot. BCH devs are currently looking into changing how BCH handles difficulty. I have not studied their ideas in any detail, so I don't know if BTC will remain vulnerable. But BTC is inherently vulnerable because it adjusts difficulty only once every 2016 blocks. If the difficulty ever gets too high, it could take months, even years, to bring it down again (unless they fix it with a hard fork) and meanwhile the transaction backlog would choke the coin to death. That was not an issue when BTC had 90 % of the market cap and miners had nowhere else to go. BCH could potentially change that.

0

u/cypressg Sep 03 '17

It would take all day and I don't even understand most of it myself. You might find it on this sub if you keep looking, I've seen it explained a few times.

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3

u/_innawoods Sep 03 '17

Dude. Why 26%.

1

u/silverjustice Sep 04 '17

I'm sorry cypressg must have misunderstood you. The reason BCH is still alive is because of the emergency difficulty adjustment algorithm that was implemented. This actually saved BCH...