Propping Up and Losses Last MonthEndy Callahan
The halving that occurred several days ago revealed a few interesting facts. There are avid fans of the cryptocurrency industry that have their strategies and tactics. What miners do is not always simple to explain – trading is one of the activities that can make you feel either a winner or a total loser.
Propping up BCH is what drew all experts’ attention. Tribalist miners are people who pick a certain kind of crypto for mining. As a rule, the block reward is not their key motivation. Propping starts when the hashrate value is lower than another hash price for a long time. Last month was especially busy and there were many tribalist miners.
The participants chose to leave the funds and not switch to Bitcoin after the first week in April. They compared the BCH hashprice with that of BTC and noticed a thirty-percent decline. They forewent profit and supported the network.
It does not pay off for some to switch between mining on various crypto networks. Analysts admit that BCH hashrate has fallen and now they think this is how the miners did their part trying to provide their support.
Evidence of Recent Tribalism
BCH used to have safety problems a year ago. This may have influenced the number of tribalist miners. A lot depends on algorithms and how users benefit from gaming opportunities and volatility. Subsidies in April led to a lower number of miners chasing profits only. In some instances people choose ideology over profits. What tribalist miners did will inevitably influence the regular course of the market. The recent funding scheme could have stimulated altruism in some. How smart and wise the philosophy of those miners is only time will prove.
The unprofitable mining last month may correlate to Bitmain. Experts caught the end of the IPO process. This, in turn, allowed the specialists to look into the issue deeper. The process shows that around one million BCH was on Bitmain’s balance sheet.
Bitcoin Cash has a massive proponent and this role belongs to Bitmain. The latter sponsored some part of the project development. Since there was not enough support for the hard-forking, Bitmain provided plenty of support behind the altcoin. The brand accepted BCH as payment for the devices they employed for mining hardware. Before the company launched the altcoin, Bitmain referred to a review by the BTC’s site. The trouble was associated with the algorithm. Later, specialists solved the problem, and participants could mine blocks. According to analysts, the mentioned issue is the main reason why the supply of BCH is higher than that of BTC. Some believe that Bitmain used their hardware for mining BCH. They could have also redirected users’ hashrate.
It is not easy to determine and identify the real miners. There are lots of assumptions, though, and we may only guess who the true players are. Altcoin that people mine at a loss raises too many questions and speculations. The majority of activist miners took care of their stake in BCH. Mining the post-profitable crypto was not their main motivation.
Profitability and Via BTC
The BTC network offered larger profits yet there were those mining BCH. The facts prove that ViaBTC noticed a decrease in its share of the total BCH. More than that, the profitability of mining BCH in April was lower. Bitcoin Unlimited gained support from ViaBTC before the company launched BCH. They also supported BCH later on. As a result, the team gave a start to a futures market using their exchange platform.
The investments that ViaBTC receives come from Bitmain. Nevertheless, the BCH network hashrate suffered a decline between March and April.
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