Will the Ethereum Merge affect Bitcoin Cash?

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Avatar for Jnavedan
1 year ago

Bitcoin Cash and Ethereum disagree on consensus

The world is more intricate than we think, especially within the cryptocurrency market. 

Perhaps the most shocking news is that it is in the critical days for the radical change regarding Ethereum's Blockchain consensus mechanism. Yes, it will move from Proof of Work (PoW) to Proof of Stake (PoS).

In fact, here on Readcash, there are several good articles arguing for this. 

So, I might make the slip of boring you if I fall into the error of reinterpreting the arguments of my fellow authors in the Bitcoin Cash community.

The Ethereum Blockchain is the reference for smart contracts that enable decentralized finance (DEFI). As well as the standard bearer of Non Fungible Tokens (NFT).

With this change, the project's leaders, with Vitalik Buterin at the head, seek to make the protocol more efficient based on energy standards (reducing consumption and use of ASICs).

In addition, lower transaction fees (GAS): the one that imposed so many restrictions on retail users and truncated projects. 

I still remember my disappointed face during the NFT boom when I minted an NFT of a Pixal Artwork I owned on OpenSea and wanted to place it for sale. The cost of Gas was prohibitive for me, an investor rather than a retailer suffering from FOMO.

Fortunately, in the Bitcoin Cash community, the protocol allowed for NFT to be minted. Of course, without no level of detail in Ethereum until SmartBCH came along. 

I regret the problems in the second layer of Bitcoin Cash presented recently. I hope the project leaders are wise enough to circumvent them. 

Perhaps you are assuming that the goodness of Ethereum: the internet computer as it was nicknamed at the beginning of the project, will now be available to us, the average citizens.  

I wouldn't be too sure! 

The move from PoW to PoS will mean that Blockchain will be more and more centralized every day, and the holders of shares will be like board members of a large corporation. You get it! They will be visible and within reach of regulators.    

Ethereum is the second largest cryptocurrency by market capitalization. So, what happens with it between now and the future will significantly impact all other respectable projects like Bitcoin Cash. 

It is obvious the intention behind the technological change and what is about to happen. 

Capital accumulation will continue to do its thing, and we will have changed everything to get to the same place. 

No wonder these bright guys are walking around Switzerland.

Now, think about the situation of the miners. 

Recently, I read news about BCH on a specialized cryptocurrency blog. These are not as plentiful and favorable as I would like.   

Anyway, if my understanding doesn't fail! It says that during the last three months, the price of BCH oscillated between 10% based on its current price, despite reaching the highest mining difficulty level.   

https://ambcrypto.com/what-bitcoin-cash-bch-investors-should-be-prepared-for-in-september/

Now! Imagine where the miners will go in their Exodus and those who did not manage to sell the farms full of ASICs. 

Source: Image generated by Stable Diffusion and edited by me.

Final Thoughts

At the time of writing, I could say that the Ethereum Merge will be a fait accompli in a matter of hours.

Maybe! I will check my OpenSea account again and now if I can sell my minted NFT. Well, I also read about an ocean without much traffic.

So, I won't get my hopes up too high. Hahaha 

On the other hand, if you are a technologist, it is advisable to monitor how many miners will enter in the days to come to the Bitcoin Cash Blockchain. And if you are a financial speculator, the incidence of new miners on the price of BCH.

Of course, not all of them will come to BCH. Keep in mind that other PoW-based projects beyond BTC will also be considered by miners.

I don't know for sure which project offers the best economic incentives. But I do know for sure that Bitcoin Cash represents the original purpose of Bitcoin.

Bitcoin Cash's strength lies in decentralization

An original article by @Jnavedan

The thumbnail by  A M Hasan Nasim on Pixabay 

Cover image by  salesblog.at on Pixabay 

I end by thanking all my colleagues in the community, who add value every day here. As well as all my sponsors for believing in the content I share with you.  

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1 year ago

Comments

The "Ethereum Merge" is a brave decision. It will influence existing cryptocurrency technology. Ethereum 2.0 is a challenge for other PoW cryptocurrency projects.

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1 year ago

Yes, you are right. We'll see what happens. Marge was done today if I'm not mistaken.

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1 year ago

Yes, ETH 2.0 is Live since Sep 16, 2022.

I posted an article about why ETH Merge is good, you might have missed it! https://read.cash/@Unity/ethereum-20-is-now-live-b54a4e61

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1 year ago

Best of luck to you colleagues!!! I hope you will able to find opensea for your NFT

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1 year ago

Hahaha. Thanks, my friend!

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1 year ago