Bitcoin Cash is born! BCC mining difficulty drop explored. Will Coinbase customers sue over Bitcoin Cash? Neocash Crypto Radio Russia launches! St. Petersburg competes to be Russia’s crypto capital. On hack anniversary, Bitfinex announces Ethfinex plan. AMD shares take flight as miners rent 747s to ship graphics cards. Six out of ten corporations prefer the blockchain!
We’ve written out short overviews of the topics discussed on today’s show below! Be sure to listen in to the whole podcast to get more information, insights, and thoughts on each of them from Darren, Pedro and JJ!
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|Traditional Financial Markets||Cryptocurrency Markets|
|Gold $1267||Bitcoin (BTC) $2689|
|Silver $16.56||Ethereum (ETH) $220|
|Oil $49.61||Bitcoin Cash (BCC) $396|
|Dow Jones 22,016 points||DASH $182|
|30Y UST Yield 2.854%||Litecoin (LTC) $42.23|
From the Bitcoincash.org site: “At 18:24:41 UTC, ViaBTC pool produced a 1.9 MB BCC block, which was not valid on the legacy Bitcoin network. This marked a clean break and the birth of Bitcoin Cash.”
We had a live stream going from about 8am EST until 11am on Tuesday. Turns out the first block took more than 6 hours to mine. We had a good time nonetheless with special guests Bruno, Daniel, and Michael.
As of this episode the Bitcoin Cash network appears as such:
- 15 Blocks mined so far
- There are about 63 nodes
- The largest block has been over 4.6MB
Gavin Andresen offered this comment on Twitter: “If BCH hashpower > BTC, I’ll start referring to it as just bitcoin.”
He includes a link to a blog post of his titled: A definition of “Bitcoin” In his post he defines Bitcoin as follows:
“Bitcoin” is the ledger of not-previously-spent, validly signed transactions contained in the chain of blocks that begins with the genesis block (hash 000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f), follows the 21-million coin creation schedule, and has the most cumulative double-SHA256-proof-of-work.1
It is clear that Bitcoin Cash is a long way from becoming the dominant version of Bitcoin, but Darren (a longtime critic of SegWit) believes it “could happen pretty easily.”
Bitcoin Cash has a new difficulty drop feature. If hashpower drops and blocks become too slow, the mining difficulty lowers to compensate. The drop is based on an averaging of block times called “median time past” (MTP). If six blocks take more than twelve hours then difficulty will be lowered.
The difficulty drop is triggered based on six blocks taking longer than 12 hours to mine, as measured with MTP. The MTP of the last block is compared to the MTP six blocks ago. If they are more than 12 hours apart, then the difficulty drops by 20%.
After the hard fork, Bitcoin Cash’s hashrate will drop from the combined pre-fork Bitcoin hashrate. Exactly how much hashrate it will get is open to speculation. If it gets less than 8.3% then the difficulty drop will be triggered. (The drop could still be triggered with more than that based on variance.)
The difficulty drop does not happen immediately. Because of the way MTP delays measurement (see the note above), the drop won’t happen until at least six blocks after the first slow block. At least the first six blocks after the fork will be at full difficulty.
One final thought about Bitcoin Cash. If you listened to the live stream we talked for a moment about how some individuals exhibit a fervent almost religious craze over Bitcoin being the ultimate coin — the Bitcoin maximalists. There are other sides to that coin, so to speak, such as this one for example: this reddit post calls on freedom loving people to eschew SegWit for the liberty offered by Bitcoin Cash. And there are many crypto enthusiasts who are preferring to avoid the Bitcoin battle altogether and are focusing their attention on other blockchains.
Coinbase has clearly stated that the company is not taking customers’ Bitcoin Cash for themselves, but its decision to withhold the new currency has led one prominent legal scholar to suggest the company will be sued.
And, indeed, that now looks likely to transpire. An activist group, which claims Coinbase’s decision is akin to a brokerage withholding new shares from its investors, warns it will commence a class action suit after August 15 if the company doesn’t release the Bitcoin Cash.
Neocash Radio subscribers may have noticed a strange thing this past week when a version of the Neocash podcast was published in Russian! Yury and Michael have recorded the first episode of their new podcast Neocash Crypto Radio in Russian! Congratulations to the both of them for taking this first big step!
Also on our website at NeocashRadio.com you may have noticed the language switcher in the upper left hand corner (of the desktop version) is up to four! That’s right, we are well on our way toward building a truly global podcast. If you are out there listening and wondering how you can be a part of this growing enterprise, send me an email at email@example.com
While we’re on the subject of Russia, St. Petersburg is reportedly challenging Moscow to become Russia’s crypto capital. On Aug. 16-17, the city will host a “Hypethon,” where dozens of pre-ICO projects will be pitched to angel investors. The event, supported by the Waves Platform, will be open not only to blockchain professionals, but to enthusiasts as well.
We covered the Bitfinex hack back in Episode 167. The hackers made off with 119,756 bitcoins (at the time worth about $72 million) worth today $323,341,200. There is controversy over the reimbursement of funds due to both the choice to use USD Tethers and the fact they only covered the cost at the time of the hack.
This blog post from Bitfinex announces their plan for a new exchange called Ethfinex. Their goal is not just create a decentralized, smart contract exchange for Ether and ERC20 tokens, but to create a platform “hybrid community and information hub for developers, traders, and enthusiasts.”
The nectar token is announced on the Ethfinex page. It is described as a loyalty reward and in the longer-term the token holders will have some say in the governance of the exchange. Initially they will mostly be owned by Ethfinex.
(Interesting side note: Episode 167 is the first episode we had Randy on in-studio. We miss you, Randy!)
Advanced Micro Devices (AMD) has enjoyed a rising stock price on the tide of cryptocurrency mining. Shares are up 152% over the last 12 months. Thanks to AMD, many new cryptocurrencies have been mined. Initially, only AMD graphics cards were capable of handling the scrypt mining algorithm made famous by Litecoin. Currently a majority of ‘alt coins’ can use GPUs for mining.
Reported on July 31, 2017, a study by analyst firm Juniper Research identifies that nearly 6 out of every 10 (57 percent of) large corporations with more than 20,000 employees are or will be developing strategies involving blockchain technology in order to meet the now global technological trend sweeping across industries.
The research indicated that companies with a need for transparency which are currently dependent on paper systems or engaged in a high volume of transactions would best be able to apply blockchain technology to suit their needs.
BTC Address: 1MmFwDeZPgxJ4GyzbfmZVLJv3aZcpxSfR5
ETH Address: 0xe4689EF88F239C6eed1Ff262876e2499495c1617
DASH Address: XtLEPo6DKeu45e2czdHLEb5EzJRVDz2aLZ
NXT Address: NXT-TT49-WV65-HZJA-5EJF9
BCC Address: 1NbqUSbKziuXU3tS2quSMcekEYgC83QuEq
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