Dash holds strong since other top payment cryptocurrencies including Bitcoin SV, Bitcoin Cash and Litecoin face future mining profitability issues and have their hashrates decreased in comparison to Dash as we are reading further in the altcoin news today.
According to the mining data that was gathered a few days ago, multiple cryptocurrencies pull very small revenue from the network transaction fees calling into question the future viability and profitability of securing the networks. Last week, the total fees generated by the entire LTC network over the course of a day reached $453.77. Bitcoin Cash and Bitcoin SV generated about $103.91 and $79.94 respectively. This contrasts with Bitcoin mostly which receives a much bigger portion of the mining revenue from the fees over the same day.
The miners in proof-of-work cryptocurrencies are compensated by fees and in part by supply emission of new coins created. Over a longer period, the emission by various networks tends to reduce. But in this scenario, however, the hope is that the network will generate enough usage so that the fees are enough to compensate the miners to sustain a robust hashrate in order to sustain the network from attacks. The emission of new coins to miners should be enough to provide revenue to support a robust enough hashrate for a secure network.
For the top cryptocurrencies mentioned above, the transaction counts and respective revenue has not been enough to add significant miner interest. The network hashrate for these networks have stagnated and declined over the previous year. According to the data from BitInfoCharts, Litecoin’s hashrate has decreased dramatically from the all-time high of $523.81 terahashes in July to 231.45 which is a decline of more than 50 percent. This is also much lower than the network’s hashrate one year ago of 253.08 terahashes.
Dash holds strong while Bitcoin Cash’s hashrate is up marginally from 2.1 exahashes at the time of the split with Bitcoin SV which is a drop from the last year’s high of 7.88 exahashes. Bitcoin SV follows a similar pattern with a current hashrate of about 1.21 exahashes. Dash experienced a far better picture in the hashrate growth since it is up by 3.93 petahashes. This represents a continuing investment in the network despite the wide price movements on the market.
Roger Ver’s Platform Withdraws From 12.5% Miner Fee Proposal
“As it stands now, Bitcoin.com will not go through with supporting any plan unless there is more agreement in the ecosystem such that the risk of a chain split is negligible.’’The decision came as a response to the heavy criticism the platform was getting. The Bitcoin Cash supporters said that there are less coercive ways to raise development funds and the users of bitcoin also used the proposals to call out the centralization of Bitcoin Cash. Roger Ver’s Platform stated:
“We think it is clear that the existing proposal does not have enough support, and we will be working to come up with a plan that is profitable for all the relevant parties and which preserves the fundamental economics of Bitcoin Cash.”Roger Ver didn’t comment on the matter yet. The proposal was initially pushed by the cartel of miners that represent 54 percent of the network’s identified hash rate or 34 percent of the total hashrate. The CEO of BTC.top Jian Zhuoer announced the proposal a few days ago and said that his mining pool alone controls 25 percent of the identified hashrate. Some of the other members of the cartel include the CEO of Bitmain, Jihan Wu, and Haipo Yang of ViaBTC.com. Roger Ver’s platform was a part of the plan but not anymore. Bitcoin.com represented less than 2 percent of the known hashrate which means that the cartel still controls 32 percent of the network. Zhuoer stated:
“Funding of infrastructure may often go overlooked or be underprioritized.’’Based on the prices, the proposal will reach up to $41,000 in the funding per day or about $7.5 million over six months period. Most of the funds will go to the Bitcoin ABC or the primary open-source implementation of the Bitcoin cash protocol. Bitcoin ABC stated:
“Although many previous attempts at stable infrastructure funding have been tried with mixed results, we are optimistic this plan could be a great success.’’
Bitcoin Cash Dev Tax May Still Roll Out Despite Roger Ver’s Support
“The dev tax is wounded, but not dead,” developer Peter Rizun, who is against the proposal, told Bloomberg in the latest Bitcoin Cash news.He also pointed out that a lot of key miners support the proposal and could still implement it on May 15. Meanwhile, Bitcoin.com is led by Roger Ver, stressed that "this is a great opportunity for developers to clarify what they need funding for, and provide the specific budgets and timelines they have for their work.” As the pool operator said, any new proposal will need to have as many people of economic weight on board as possible. These include businesses, exchanges, miners as well as Bitcoin Cash implementations. The Bitcoin Cash dev tax is now a viral topic in the cryptonews. The CEO of one of the largest mining pools on BCH, BTC.TOP recently offered to direct 12.5% of the mining rewards to support the BCH infrastructure over a period of six months. His post included a threat to orphan the noncomplying BCH blocks (the ones would no longer be included in the BCH blockchain). Besides BTC.TOP, the proposal was also signed by other large mining pools including Antpool, ViaBTC, BTC.com as well as Bitcoin.com, until the latter revoked their support. After that, we could see that the response from most of the miners was negative, including a lot of dramatic calls for massive exodus from the coin. The main issue, according to the comments, was based on the centralization. Taxes like these would quickly create a wholly centralized infrastructure for the coin and leave miners voting out in the cold. Data now shows that the average number of developers working on BCH-related products (the Bitcoin Cash dev tax is one of them) declined by 32% in the first half of 2019. Meanwhile, Bitcoin Cash (BCH) is now stable with a 3.34% increase on the day and a new price of $381. The charts have seen mixed movements in the past month but the cryptocurrency made most of everything over the past week, just like many altcoins out there.
Bitcoin Cash Just Broke $360 And $400 Is Imminent Now
- Hourly MACD – The MACD for BCH/USD is now gaining a strong pace in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well above the 50 level, with a bullish angle.
- Key Support Levels – $350 and $330.
- Key Resistance Levels – $365 and $400.
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