Bitcoin Cash experienced a second mining difficulty adjustment today, reducing it from 26% of the main chain to 17%, so that less hash-power (specialized hardware) is required to find a block.
The adjustment begun at block 478647, which reduced difficulty by 20%, with block 478648 reducing it by a further 20%, bringing the total difficulty down to 16.78%
Blocks are now coming more often, with three of them found in the past hour, but the main chain remains more profitable to mine, therefore it appears full normal operations have not yet resumed.
That may be because Bitcoin Cash’s price is currently very low, falling to $270 from an all-time high of $800 as everyone tried to instantly sell it and convert it to Bitcoin Core.
As such, another difficulty adjustment may be needed, or the price could rise now that the selling has seemingly subdued, or the main-chain could have its own difficulty adjustment upwards.
But the recent reduction in difficulty has already attracted new miners. BitClub has begun finding Bitcoin Cash blocks, which some found surprising because their admin is a very strong Bitcoin Core supporter.
However, as old mining gear might once more become profitable to turn on, opinions might be less relevant than bottom line profits.
Moreover, the chain-split hardfork might be the best thing to have happened to bitcoin. The main-chain’s price jumped yesterday from $2,700 to $3,300, in part probably because of BCC/BCH.
Both sides now no longer need argue or debate, but can follow their own visions and aims, with time alone able to prove which approach is right or whether both have their own use.
A Bitcoin Core settlement system where transactions mainly happen through Lightning Network (LN) hubs, or a Bitcoin Cash system where transactions happen directly on a peer-to-peer manner.
There are pros and cons for both. For the freedom of forking – which bitcoin cash enjoyed on August 1st – to be preserved, capacity needs to be kept in line with technological capabilities.
Such inventions like Lightning will be useful in some aspects, but a breakthrough in sharding technology would be the ultimate prize.
While for Bitcoin Core/Settlement, they need to ensure the forced use of LN does not lead to bank-run like situations with systemic failures, defeating the whole point.
At the same time, both will need to consider whether the greater capabilities of ethereum should be incorporated in some manner so that the full digital nature of bitcoin can be employed, turning it into codeable money.