The Bitcoin fork known as Bitcoin Cash scares the crap out of me. It scares me more and more every day. And not just for one reason but for several reasons.
- How it was released. Bitcoin Cash pretty much gave every bitcoin holder the same amount of BCH as they had in BTC. This created incentive and demand for people to get Bitcoin Cash. This alone isn't a problem, it is simply marketing. But it did play into a psychological role in how people would act if they got free money. Which if you think about it many of the BTC users don't support government giving out free money to people but have no problem with some mysterious overly hyped crypto currency giving free coins to people. You may say theirs a difference. After all government is centralized and Bitcoin is decentralized. And your right. However the less people using the network the more centralized it becomes. This is important to note for my next point.
- 97% of the Hashpower on the BCH Network is controlled by unknown miners. Once again theres nothing wrong with mining anonomously and being quite about it. But when anyone is mining more then 51% of almost any crypto currency they end up gaining a bit of power and control over the people using the network. In 2014 myself and many other people stopped using CEX and it's brother site GHash because their pool ended up becoming so big that they pretty much could double spend and manipulate the BTC network. Of course we all came back to CEX and GHash when things changed, but boy where we scared. And rightfully so. And we should have the same concerns about BCH right now about this. And honestly we should be more concerned because unlike the case with CEX we don't know who these miners are.
- Now if I wanted to destroy something that I had no control over. In this case we will say crypto currencies and more specifically Bitcoin I may copy the entire blockchain allowing users to get free BCH. Now that they have free BCH I would do some selling off, allowing the price to drop. Now to get as many people as I possibly can to invest in this system I would start to pump like crazy which would result in a rapid increase in it's price. Which would pretty be incentive for people to invest in it. Then I could do a dump and make people lose alot of money. And depending on how people invested they may have traded another crypto currency for BCH because of the rapid price increase. Which means they have less then they did before. Now World Alternative Media mentioned earlier that Goldman Sachs is advicing investors to invest in bitcoin. World Alternative Media also suggested they are interested in it because they want to create their own that they can control. Maybe they already did.