For the very first time in three months, Bitcoin made its first significant move. Unluckily, for the investors in the market for crypto, Bitcoin pitched by over 11%, got itself involved in one of the most strong sales within a 24 hour period in the year 2018.
During an interview on CNBC fast Money, Brian Kelly, BKCM CEO and founder stated that this drop in BTC prices and the entire crypto market is because of the civil war of BCH or Bitcoin Cash. There are two camps, led by ABC, ViaBTC and Jihan Wu and the other led by CoinGeek, Calvin Ayre and Craig Steven Wright, is in competition with one another for operating a series of BCH securing agreement in the community.
“Post some silent time and lowest volatility, never found in the history of Bitcoin, today, all of a sudden, things started bursting out. So, what is in it? Bitcoin Cash that came out of Bitcoin last year is into hard divergence. When you are into hard divergence, every individual generally agrees. However, in this case, the agreement is not coming from every individual. Therefore, we have landed into a crypto civil war. It is only because of this reason that many people across the market are concerned,” Kelly stated.
The main issue with BCH civil war is that it is having a major influence on the remaining market. The camp called Bitcoin SV, being operated by Calvin Ayre, transformed into a kind of hash power competition. It intimidated to involve around 51% attack against Bitcoin cash structure, which when initiated, offers Ayre’s camp the potential of manipulating BCH blocks.
Jihan Wu and Bitmain have a significant impact on the Chinese community for cryptocurrency mining. With the largest mining device producer and mining pool machinist, Bitmain might even move its hash power from Bitcoin to Bitcoin Cash for fighting against Calvin Ayre and CoinGeek.
If this happens, then the Bitcoin hash rate might go down within a very short span of time. This could make it difficult to mine blocks at a breakneck pace. Ultimate, the entire network would slow down.