Bitcoin Mining Leader Jihan Wu Could Have Tanked the Crypto Markets During BCH Upgrade
Back on November 14, Bitcoin (BTC) and most of the cryptocurrency market plummeted abruptly, reaching new year lows. This situation happened just a few hours before the so awaited Bitcoin Cash (BCH) network upgrade.
Bitcoin Cash was going to experience a new network upgrade in which there were two different proposals, one backed by Jihan Wu and Roger Ver, Bitcoin ABC, and another proposal backed by Craig Wright and Clavin Ayre, Bitcoin SV.
Since that moment a hash war started between both sides. Each of the proposals wanted to have most of the hash power of the Bitcoin Cash network, something that ended a few days ago with Bitcoin SV surrendering.
On November 14, there was an unauthenticated screenshot that started to circulate on the internet. Apparently, the statement was made by Jihan Wu, the co-founder of Bitmain. The message reads as follows:
“I have no intention to start a hash war with CSW, because if I do (by relocating hash power from btc mining to bch mining), btc’s price will dump below yearly support; it may even reach $5,000. But since CSW is relentless, I am all in to fight till death.”
However, there is no direct relationship between price and hash power. Nevertheless, price affects mining operations and, consequently, there is an indirect relation with hash power. As blockchain.com shows, Bitcoin’s hash rate has dropped around 44% in just a few months. Since November 14, the drop is even more noticeable.
It is also possible for Bitmain and Bitcoin SV supporters to start selling BTC that they had stored in order to be prepared for a long and costly hash war. It is also possible to see that the combined hash for BCH and BSV was higher than before the split.
The statement apparently made by Jihan Wu might have been photoshopped or just a faked. Nevertheless, it is possible to make a connection between the price crash in the cryptocurrency market and the state.
Now, the hash war is over and Bitcoin SV will be implementing replay protection to avoid experiencing replay attacks and effectively compete in the market against Bitcoin Cash.