Do you understand difficulty bombs?
In the good old alt days back when shit coins were springing up as fast as dandelions. It was easy to pull off since almost every altcoin used sha256 and the same basic re-adjustment algorithm copied from Bitcoin.
It wasn't until others changed the algorithms like litecoin did, that this stopped (for a time).
What is "Difficulty" and "Difficulty Target"?
The difficulty target in most crypto, including bitcoin, is basically how many 0's has to come sequential before another character in a hash you solve through the process known as "Mining".
Your Mining Rig will take something like the following equation: SHA256(LastBlock+TxsIncluded+nonce)
and try billions of combinations of nonce until it hopefully finds something like this:
00000000000000000000ab32Df52ca5B
The Mining Software then looks at how many leading 0s there are, and if it is over the current difficulty target accepts it as valid work. This is then used to Validate the creation of the next block, you solve the block, it is added to the blockchain (transmitted to the network for verification and inclusion in the master blockchain records).
How does difficulty get decided?
With Bitcoin, difficulty recalculates this target every 2016 blocks or approx 2 weeks.
How does a Difficulty Bomb work?
A difficulty bomb comes in by first dropping the mining power for the selected coin (in this case BCC). After the re-adjustment kicks (approx 2 weeks) the difficulty is artificially lower than it should have been. The previously absent miners then come in and scalp the network mining more blocks faster than normal, earning more rewards and fees than fair. Prices soar and these new miners use the hype to drive prices even higher while earning even more from their secret attack.
Once the network looks healthy and growing with more txs per day, the the re-adjustment to the Difficulty kicks in (about 2 weeks in). The difficulty sky rockets and all those same miners who dropped the difficulty bomb have cashed out their newly mined coins as they stop mining and watch as the core network crawls.
2-5x slower confirmation block times (txs) for 2 weeks possibly longer (because it is number of blocks solved not time)
How does this effect Bitcoin Cash (BCC)
BCC folks don't even talk about this possibility. The reason Bitcoin no longer suffers very much from this anymore is because they have gotten so big that it requires a HUGE amount of people to pull off, AND most alts now use non sha256 algorithms, so there isn't a lot of other places to go.
However, BCC is SHA256!
Conclusion
It is very possible we see a spike in their mining power of Bitcoin Cash (BCC), followed by a spike in prices, followed by a difficulty bomb unfolding leading to a network crawl/stall and price collapse near term!
What are your thoughts? I do believe even if this does happen BCC will be able to survive and even thrive, however we have seen this happen before and it should be obvious it CAN be pulled off in the coming weeks in Bitcoin Cash!
price crash
and mass exodus out of bcc to btc
If this the case it sounds like a massive opportunity!
I agree, I am not saying if this happens it makes BCC die, no, it means IF it happens we have a HUGE opportunity potentially to buy up on a big dip on FUD in the next 4-6 weeks. Have to see, it is rare you get the ability for the ASIC FARMS to be able to get in on an "alt" these days!
Price goes up, when they stop mining...I have no idea who buys this...
Miners are dumping b4 people have their BCH unlocked on blockchain.info and coinbase...
No prices go up AS they are mining while they cash out and once the difficulty re-adjusts they stop mining leading to a network stall. This is a classic difficulty bomb potential. I think you should re-read my post.
Very nice post. But I would just change BCC to BCH. BCC is Bitconnect.
You can check it at coinmarketcap.com
I really hate all the BCC/BCH arguments on Bitcoin Cash it should just be called BTCC Bitcoin + Cash = BTCC idk where BCH or BCC came in honestly as the official dev team refused to pick one and everyone on the internet uses both.
I would just stick to keep BCC to BitConnect as they was first.