The cryptocurrency market lost a further $10 billion as Asian markets opened this morning, pushing the overall value down to a yearly low of $175 billion.
The ongoing Bitcoin Cash hash war between the two teams behind newly minted forks Bitcoin SV and Bitcoin ABC appears to be fuelling the crash. As a result of Bitcoin Cash’s plummeting price, the coin has lost it’s 4th place position in market capitalization, being taken over by Stellar Lumens (XLM). In a similar turn of events late last week, long time 2nd position holder Ethereum (ETH) gave into selling pressure and was overtaken by Ripple (XRP).
The moves show a clear indication that investors are losing faith in mining, or proof-of-work (PoW), coins, instead favoring more centralized, regulated proof-of-stake networks. It also exhibits a close correlation between the two companies that are competing for the solution of choice for cross-border payments. Ripple and Stellar, both of which were co-founded by Jed McCaleb, hope to provide banks with a faster, cheaper blockchain-based solution to international remittance which could one day replace SWIFT.
Since the Bitcoin Cash hash war begun last week, the Bitcoin ABC fork has emerged as the more popular chain, meaning the majority of exchanges have maintained it under the BCH ticker. However, withdrawals and deposits remain locked until the networks become stable, meaning many investors can only watch as the value of their assets tumble. Prices appear to be further affected by large swathes of Bitcoin sell-offs – possibly a result of Bitcoin SVs’ Craig Wright dumping his BTC to support the hash war.
Recently, Bitmain’s Jihan Wu, one of the Bitcoin ABC’s main supporters, hinted that users should sell off Bitcoin SV to buy BCH after CoinEx announced it would add BCHSV/BCH trading pairs. Presumably, it was one of many exchanges to apply BCH to the Bitcoin ABC hard fork.
Market monitors are listing the various versions of the forks in different ways, with CoinMarketCap still listing Bitcoin Cash (BCH) in the traditional sense, trading at $358, down 52 percent over the week. It also lists Bitcoin ABC and Bitcoin SV as ‘IOU’s,’ with BCHSV trading at $89 and BCHABC at $238.
Until there is some clear agreement on how the BCH chain should continue, its likely powerful players will continue to manipulate the market, causing volatility and losses across the board.