[Additional notes] Rumors that difficulty adjustment is the reason of Bitcoin Cash’s rise

November 24, 2017

※ We have appended below the article. In fact it turned out that hash power was not concentrated on Bitcoin.

Hello, @ Mana .

Bitcoin Cash has risen again, but this is rumored to be due to Bitcoin’s difficulty adjustment occurring around November 25th.

The flow that the market is anticipating is like this.

Miners concentrate hash power on Bitcoin before difficulty adjustment.

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Mining difficulty of Bitcoin increases when adjusting difficulty level.

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The mining profitability of the Bitcoin drops and the mining profitability of the Bitcoin Cash increases.

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Many of the miners mining the Bitcoin Cash until the next Bitcoin difficulty adjustment.

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As the hash power of Bitcoin decreases, transaction clogging also occurs.

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"If the miners gather in the Bitcoin cash, the market will rise, will it not?"

Adjustment of the difficulty of mining will occur every time the bit coin advances by 2016 blocks, but if then the hash power is high then 2016 block will continue with the mining difficulty level high. About 2 weeks to go forward 2016 blocks.

In the case of a Bitcoin cash, the degree of difficulty is adjusted for each block with the hard fork of the other day, so if the difficulty level of the bit coin is high, the mining difficulty level of the bit coin cache is immediately adjusted low , It has become a mechanism to improve profitability.

However, what I want to watch out for is ...,

Miners are not deciding the price of Bitcoin

↑ This. Since most of the participants in the virtual currency market seem to have little knowledge of mechanisms such as miners, hash power, difficulty adjustment · · ·, it seems that they simply look at "Bitcoin cash is not going up" .

And it is not the miners that decide the price of Bitcoin, but supply and demand. Even if Bitcoin mining/hash power has decreased, the market will rise if market participants want it.

In the past, there were times when the clogged transactions of Bitcoin reached 300 thousand, but even at that time the Bitcoin market grew.

So, I think that it is the "expectation of those who know these mechanisms". I do not know how it will affect the price of Bitcoin, but I personally think that I will be very careful with it.

The number of people who buy Bitcoin Cash may increase

However, as of now, the rise of Bitcoin Cash is the first stage so far.

Since the topics about Bitcoin cash are starting to increase in SNS etc. now, it is possible that various people will come to buy in the future.

I do not know what it will develop after the difficulty adjustment is over, but I think that the price movements will occur in Bitcoin and Bitcoin Cash around November 25th.

[Posted on 24 November] The Bitcoin hash rate has not risen

It is a postscript part from here.

It was rumored that the miners will concentrate hash power on Bitcoin, but in reality that did not happen, rather the hash power of the Bitcoin Cash is rising.

In other words, as the profitability of Bitcoins stabilizes so much at the next difficulty level adjustment (around 18 o'clock on November 24, 2017), the move expected in the market yesterday may not happen Hmm.

Although I got information in the comments, it is thought that it was the beginning of the BCH rising this time, according to the people believing in BCH is because of technical developements.

The market price of Bitcoin Cash has fallen sharply. I do not know what will happen, but if the hash power for the Bitcoin continues like this, the BCH price may return to its original value.

Nonetheless, BCH is also coming down with a variety of favorable developements. People who know about it seems to hold.