The Bitcoin VS. Bitcoin Cash drama we witnessed 3-4 days ago shows how dangerous having a few key Whales miners can be. (The folks from Exodus wrote a great mea-culpa if you missed it)
!! WARNING !! — What I'm saying is pure speculation. But I think it's worth thinking about it.
What happened looked like a pure stock manipulation schema. Just like the one we could see in the movie The Wolf of Wall Street. If you remember, the whales (the folks who are on the markets with millions of dollars) pushed on Steve Madden stocks with the clear intention to Dump their stocks at the end of the day.
Few whale miners can decide to collaborate to do something alike. What if Bob, Joe, Lee Wing, Oxrj and Frizz decided to do this ALL TOGETHER (30% of them) at an any given moment:
- Dump your Bitcoin (while it's high).
- Then buy Bitcoin Cash (while it's low)
- At 1h00 AM stop mining on the Bitcoin network and start mining Bitcoin Cash.
- Let's have a good laugh about the biblical repercussions we just caused.
- Repeat in a few weeks/months
Can you see the issue here?
The whales know they will create a panic.
They know they will make the price of Bitcoin Cash go high while crushing the Bitcoin.
It's the perfect PUMP and DUMP system. The bonus, there is zero regulations on this. The bar is open! Chacha-ching!!
Here is great post about the a mining farm in China.
My conclusion
While technically unbreakable, the concept of having miners is not sustainable IMHO. Few people can create panics and make big bucks by doing so.
The media needs to start to talk about this issue. I'm looking at you TechCrunch.
A feeless crypto currency solves this issue. I won't hide my excitement about IOTA regarding this matter.
Cheers!
Pascal
