Bitcoin Cash (BCH)-Bitcoin SV (BSV) Hash Wars Cost $18M
A combination of electricity expenses and lost benefits from more competitive mining have made for a costly blockchain split.
Mining two competing chains after theBitcoin Cash (BCH) hard fork of November 15 turned out to be an expensive exercise, costing each side around $3 million in electricity bills. Total losses for the miners amount to $18 million, according to Bitmex Research, whose calculations also account for missed rewards.
https://twitter.com/BitMEXResearch/status/1072078106884759552
The new estimate is much lower than previously reported numbers, which also factored in trading losses. The hash wars triggered large sell-offs across the entire market, wiping out as much as 75% of BCH prices.
At present, both chains show regular, subdued mining levels, almost identical around 1 PH/s and with no signs of competition. However, the two coins are now fighting for both influence and exchange rate dominance, with the Bitcoin SV project being a bit more aggressive.
During the hash wars, the BCH ABC version lost above $10 billion, while the BSV version saw losses of $7.8 billion. Miners on both blockchains continue to find blocks at a relative loss as it is more profitable to mine Bitcoin (BTC). The Bitcoin network became more profitable, offering an easier block reward after around 50% of mining power abandoned the network in the past months.
Notably, Bitcoin SV aims to create scalable digital cash, claiming to follow the original Bitcoin vision. For that reason, ит is attempting large-block propagation. So far, large blocks have been propagated only under test conditions. Additionally, users have reported the Bitcoin SV network is highly reliant on four full nodes as it depends on a rather centralized group of supporting miners.
Additionally, the Bitcoin SV network saw reports of potentialdouble-spending attacks. Craig Wright went on to defend the safety of zero-confirmation spending.
As of 7:30 UTC on Tuesday, BCH traded at $102.98, regaining its leading position. BSV fell to $92.06. Both coins trade at volumes near $60 million in 24 hours, which are very low compared to the original BCH asset.
The two competing networks are aiming to reinvent digital cash at a time when Bitcoin and the rest of the crypto sector has lost its credibility and price positions still threaten to slide across the board.
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