There’s a real war going on, the hash war.
A conflict between the miners of Bitcoin Cash ABC and those of Bitcoin Cash SV to obtain recognition as the main heir of Bitcoin Cash (BCH).
The war is still going on even if It now seems quite clear that ABC is winning because SV’s hash rate has been in sharp decline since yesterday afternoon.
The problem, as a BitMEX Research analysis pointed out, is that 6 million dollars have already been thrown away to finance this war, with no real benefits for the user community.
In fact, the value of BCH is in free fall and that of the futures on BCH SV is imploding.
In the tweet with which they shared the analysis, BitMEX Research explains: “Even assuming cheap energy costs, SV miners have a negative gross margin of 353% & $1.4m of gross losses. They can’t keep this up forever.
Added to this are the costs of leasing computing power, which brings estimated losses per SV to nearly $3 million. ABC would also have similar losses, so in total would be 6 million dollars those already burned in this hash war.
In addition, on Kraken, where you can already exchange both cryptocurrencies, BCH has a value of about $225, while BSV has collapsed to $37.
This is a decisive fact because SV’s team is mining precisely to get BSV since it is not recognized as the legitimate heir of BCH and is, therefore, to be considered a new cryptocurrency with its own specific value.
Instead, ABC is actually mining what is considered the heir of BCH, so the miners get BCH and can trade it, for example on Kraken, at $225.
SV’s miners will have to settle for BSV, with a value six times lower: this makes SV’s mining less profitable, even if its costs are lower.
