Bitcoin Cash Price Shows Poise as Accusations of Centralization Grow
Bitcoin cash (BCH) traded within a narrow range Saturday even as opponents of the virtual currency hurled accusations of centralization against its developers.
BCH Price Levels
The bitcoin cash price was little changed on Saturday, reflecting a subdued trading environment in the broader market. At press time, BCH/USD was trading around $703, virtually unchanged compared with 24 hours ago. At current levels, bitcoin cash is capitalized at $12.1 billion, according to data provider CoinMarketCap. Daily trade volumes amounted to $274.5 million.
The fifth largest cryptocurrency by market capitalization has shown poise over the past five days, with prices fluctuating between $671 and $706. Like other cryptocurrencies, bitcoin cash experienced a sharp reversal last Monday, knocking prices from more than two-week highs.
Bitcoin Cash Highly Centralized: Bitpico
Hacker group Bitpico has uncovered massive node centralization of the Bitcoin Cash network, and has taken to Twitter to uncover IP addresses of the platform’s nodes. One screenshot of Bitpico’s discovery showed 98% of the IP addresses associated with bitcoin cash were “sitting in the same server rack,” the group tweeted earlier this week.
In response, a Twitter user by the name of Melik Manukyan showed that the BCH servers were hosted on a cloud farm belonging to Alibaba.
The group claimed that 49% (or one-half of 98%) of all Bitcoin Cash network nodes were running on the Alibaba cloud farm.
If confirmed, centralization of the Bitcoin Cash network would mark a significant departure from the original bitcoin, which was envisioned as having no central authority (as an aside, the backers of bitcoin cash claim that BCH is the original crypto chain). Satoshi Nakomoto said as much in the original bitcoin whitepaper published in 2008:
“By convention, the first transaction in a block is a special transaction that starts a new coin owned by the creator of the block. This adds an incentive for nodes to support the network, and provides a way to initially distribute coins into circulation, since there is no central authority to issue them.
The steady addition of a constant of amount of new coins is analogous to gold miners expending resources to add gold to circulation. In our case, it is CPU time and electricity that is expended.”
Last month, Bitpico announced it was planning to launch an attack on the BCH network with the goal of dividing it. The group says the coordinate strike will inflict grief on Roger Ver, one of bitcoin cash’s most ardent supporters.
Ver was revealed as the owner of bitcoin.com back in 2015. As Hacked reported back in April, manipulation involving bitcoin.com may have contributed to BCH’s massive rally. You can read the full story here.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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