The likelihood of a promising crypto project going up in flames is a real possibility. Back in May, we discussed the inevitability of various crypto tokens that point to the bottom of the barrel due to changing monetary landscapes and structures.
However, we haven’t talked about some of the most popular coins, which are also likely to be on the verge of gradual decline today. Two of these projects are in the top six cryptocurrency charts. Any ideas? Does your name contain the world’s largest digital asset? Bet it is like that?
Bitcoin Cash and Bitcoin SV: Expectations not met by promises?
You can curse as many times as you want in 2020. For a year of global chaos with a pandemic, forest fires, and inexcusable racial injustice, it was also the year digital assets announced their arrival after surviving one of the worst economic collapses in two decades.
We are no longer just talking about Bitcoin. There was a sense of evolution around Ethereum, Cardano tousled a lot of feathers, and some altcoins like Chainlink, Tezos and Compound recently climbed the rankings. While these crypto assets were busy with their own developments, little new or relevant happened with Bitcoin Cash and Bitcoin SV.
The ranking is hardly justified in this case. BCH and BSV, which remain at the top due to their market capitalization alone, raise the question: Are these cryptos still relevant?
Bitcoin Cash and Bitcoin SV were last relevant in this area when both hard fork assets saw their first halving in the first week of April. If you were active in the room during this time, you would remember that the coverage BCH and BSV received was nothing like Bitcoin’s in May.
While people discussed Bitcoin’s halving in a positive light, expecting the price to experience a long-term bullish rally afterwards, almost no one expected anything positive from the BCH and BSV halving.
Community users were very confident that BCH and BSV would not survive the consequences of the halving. In fact, one popular cryptanalyst was honestly “surprised”. Yassine Elmandjra, an analyst at ARK Invest, had already tweeted in May.
Bitcoin Cash doesn’t look healthy:
-Hashrate down by 30% since halving (& only accounts for ~ 2% of the SHA256 hash)
-Economic throughput at all time lows
– Charges are 0.05% of miner RPM (<$ 100 / day).
-Theoretical 51% attack costs <$ 10k / h
We have not yet seen a large-scale attack with any surprise
– Yassine Elmandjra (@yassineARK) May 23, 2020
Elmandjra announced that a 51% attack against BCH can be launched for less than $ 10,000 / hour. However, at the time of writing, that tweet was already a month old. Since we haven’t heard of any such attacks, you would have expected the BCH and BSV network to become secure in the last month, right? Law?
Well the situation hasn’t changed.
For lack of a better word, this is embarrassing. Two months after it was halved, a motivated hacker could attack Bitcoin Cash at less than $ 9,000 an hour while it only takes about $ 6,500 to take down BSV. I would have liked to draw your attention to the cost of attacking Bitcoin, but I’m pretty sure you noticed that by now, right?
The end isn’t here yet, but Grim Reaper awaits
Before we ponder a timetable for the final demise of BCH and BSV, let’s review a Bitcoin Cash-focused website and understand that the above narrative is purely factual and does not include personal vengeance with Bitcoin Cash on my part.
The website headline “Why Bitcoin ABC Needs Your Support Now” does not immediately convey a sense of trust. In fact, it only gets worse (or sad, depending on how personable you are) from now on.
The post in question highlighted that Bitcoin Cash’s current funding will be depleted by June 30th and due in 5 days. Certain points have highlighted a lack of support and growing problems for the network on a daily basis. In her own words, the post read:
“Without resources, progress will stall and Bitcoin Cash will not be able to compete with other cryptocurrencies that are innovative and scalable. Code red is becoming a serious threat. What is a small problem today becomes a big problem tomorrow. “
Well, asking for support from your community isn’t a really negative development, but we’ve tracked down the funding side and it doesn’t seem to be going according to BCH’s plan.
According to fund.bitcoinabc.org, Bitcoin ABC’s funding goal is to raise approximately $ 3.3 million, or BCH 14,500, to keep the lights on in 2020. Progress reports indicated a collection that only hit 53.63 percent of the total target, not exactly a bad turnaround in my opinion, but still not enough.
However, the individual funding of specific improvements sheds light on a shocking finding. The website had two separate funding addresses for Mempool Overhaul and Code Ownership. The development of Mempool Overhaul would improve unconfirmed chain transactions and scalability for BCH, while funding through code ownership would allow Bitcoin ABC to break away from the technical decisions against Bitcoin Core scaling. Now I’m leaving the pictures below to give a clear idea of the “support” that BCH has received from their community.
We tracked down the address for the Mempool overhaul (top left) and found that the last transaction was received 11 days ago and the address had a balance of only $ 1,721. Hence, it is safe to say that the BCH 2000, or $ 4.5 million, goal may not materialize.
We tried to collect the same information about Bitcoin SV, but except for Coingeek (supported by Ayre Group, ergo Calvin Ayre, ergo Bitcoin SV bull rider) nobody in the room had anything positive to write about it. For many, BSV is not worth the time and effort, a project led by the self-proclaimed Satoshi Nakamoto (Yes, I see you, Craig).
Where are you going, now?
Unpopular opinion alarm: Without paying too much attention to the “laudatory” above, Bitcoin Cash and Bitcoin SV would likely survive for a few more years. This is the “reality” of the present day as their market capitalization continues to allow a group of miners to remain profitable by mining these assets. However, Messari’s Ryan Selkis believes an overhaul could take place as early as next year. He said,
Overrated is one thing. Another is stupid. We hope to wash out the real trash.
Top 10 of the next year:
What are yours?
– Ryan Selkis (@twobitidiot) June 22, 2020
Place your bets folks. Place your bets while the Grim Reaper sharpens his scythe.