There is no denying regarding the impact of the Bitcoin Cash hard fork. Though experts regard other factors at play as well for the bearish market, it is true that it has affected major cryptocurrencies.
The entire week, top cryptocurrencies including Bitcoin, Ethereum, and Ripple were all seeing red. Bitcoin which remained somewhat stable at $6,200 to $6,500 in the past months dropped and is now trading just below $4,500. It has met new lows this year, and many are starting to question whether or not this is a short-term or a long-term trend.
The motivation behind the Bitcoin Cash hard fork remains unknown. And now, Bitcoin Cash SV, the hard fork chain version made by CoinGeek, Calvin Ayre, and Craig Steven Wright already is already in the receiving end of drawbacks.
Heavy Criticisms
Emin Gun Sirer who is a professor at Cornell University that a self-block reorganization shouldn’t be possible. He said in his tweet that “BSV have no idea what they are doing. You knew this. Don’t invest with a conman. Not much else needs to be said on this front”. Also, he added that “This should not be possible in a decentralized system. You can only invalidate your own block and create a new tail if you’re the majority miner. BSV is a centralized coin”.
He also believes that the development team behind SV doesn’t have an idea what the consequences are. He said that “Their blockchain’s tail just got rewritten, as if someone ripped out the last few pages and wrote over them. This is an indication that their system parameters are outside the safety envelope of their network. In short, they don’t know what they’re doing”.
Cryptocurrency Exchanges Dropped Bitcoin Cash SV?
Ever since the hard fork, the price of Bitcoin Cash SV plummeted from $170 to $66. That’s more than 61% loss in such a short period. The reason behind this is that crypto exchanges are threatening to delist Bitcoin Cash SV.
Among those that are vocal about the situation is Kraken’s team. Kraken mentioned that “Bitcoin SV does not meet Kraken’s usual listing requirements. It should be seen as an extremely high-risk investment. There are many red flags that traders should be aware of”. The team also added that “Custodial losses taken on due to attacks originating from nChain or its affiliates will be socialized among all BSV holders on Kraken. Given the volatile state of the network and threats that have been made, Kraken cannot guarantee perfect custody of BSV”.
And it doesn’t stop there. You also have miners mining Bitcoin Cash SV that have lost millions of dollars. And because of the controversial activities found on the SV chain, there are other major exchanges that are looking to delist the asset.
Since the Bitcoin Cash hard fork and the crypto market dipped into its new low, it is worth asking if there is still a chance of recovery soon? Tom Lee of Fundstrat who happens to be quite optimistic about Bitcoin even adjusted his year-end price prediction for Bitcoin from $25K to just $15K.
