Charlie Lee (LTC) Says Bitcoin (BTC) HashRate Could ‘Wipe Out’ Bitcoin Cash (BCH) in Three Weeks
Charlie Lee, one of the most important figures in the crypto space and Litecoin (LTC) creator, talked at the CoinsBank Blockchain Cruise about the intrinsic value of cryptocurrencies. In order to evaluate from where Litecoin, Ethereum (ETH) and Bitcoin Cahs (BCH) have value, he used four different factors: censorship resistance, transaction immutability, cost of production and fixed money supply.
He has been very hard talking about Bitcoin Cash, the famous hard fork of the Bitcoin network. He said that the cryptocurrency is currently censorship resistant. However, he said that it has a problem because it uses the same algorithm as Bitcoin.
Lee explained that BCH could experience an attack by hashpower, since it has 6% of the total hashrate of the Bitcoin network. Moreover, he commented that this would have terrible consequences on the network.
About it he said:
“So even a small pool, or even a small mining farm, can effectively censor all of the transactions if they wanted to. So an effective attack would shift to Bitcoin Cash and they just mine Bcash solely and deny any other miners blocks. Once that happens, all the miners will quit mining Bitcoin Cash because all their blocks will be orphaned, and they will be losing money, so they will go back to mining Bitcoin.”
This would clearly create a crash in the price of Bitcoin Cash. The miner, however, will be making a lot of money. Furthermore, there will be no financial incentive to keep mining in a broken chain. Users can simply move to Bitcoin with the same equipment.
He then compared Bitcoin and Litecoin mining algorithms. Bitcoin and Litecoin dominate their respective mining algorithms. If Litecoin has a miner’s attack, they would destroy themselves and their mining capabilities, thus losing money. They would kill their own coin.
Because of this situation, Bitcoin’s hashrate could easily and effectively ‘wipe Bitcoin Cash out of existence’ in 20 days. This would be the time required to mine all the blocks that Bitcoin Cash has and remove Bitcoin Cash from history.
Nonetheless, Litecoin’s founder explained that this is unlikely to happen since miners would not be losing their time in harming Bitcoin Cash and its network.
Bitcoin Cash was born as a hard fork to the original Bitcoin network due to the fact that the community couldn’t decide how to scale the network. Bitcoin Cash opted to follow an on-chain scaling solution (increasing the block size), while Bitcoin continued developing an off-chain scaling solution known as the Lightning Network (LN).