With the SegWit2x fork looking increasingly dead on arrival, attention is turning to something called “The Flippening”. Could the real battle for Bitcoin’s destiny still be between BTC and Bitcoin Cash (BCC)? Read on to find out.
First, an explanation: “The Flippening” is a hypothetical event where a majority of Bitcoin’s economic and hashing power suddenly “flips” to mine Bitcoin Cash instead. Bitcoin (as we know it now) grinds to a dead halt, or switches to a new POW algorithm to keep going. From there, all that’s left to fight over is the name.
If BCH hashpower > BTC, I'll start referring to it as just 'Bitcoin' : https://t.co/vHChNvu7SJ
— Gavin Andresen (@gavinandresen) August 2, 2017
As things stand, this is a greater potential threat to current, (SegWit-enabled) Bitcoin than Bitcoin Cash. BCC, already a minority chain, has a built-in mechanism to adjust to sudden drops in mining difficulty. BTC does not.
If it becomes a reality, The Flippening would affect more than just the ideologues. Bitcoin’s massive price gains over the past year have brought in vast numbers of newcomers, many of whom have never heard of Bitcoin Cash (or the reason it exists). What if they’re all suddenly caught holding the BTC bag?
It isn’t like a fork scenario where everyone gets free coins, even the uninformed. It would require prompt and manual action to protect their investment.
Flippening Scenario ‘Ridiculed but Actually the Most Likely’
Yours.org CEO Ryan X. Charles described the Flippening scenario as “ridiculed in the Bitcoin community” but “actually the most likely”. Bitcoin Cash is undervalued even at current prices and savvy whale investors may see an opportunity to make 10x gains on what they already have. Imagine Bitcoin were $600 again, with a guarantee it’d moon. Would you buy?
“Whales can cause The Flippening if they want to by buying Bitcoin Cash and selling Bitcoin,” Charles said in the video above.
It’s definitely not a crazy idea. Prominent and powerful figures in the mining industry, including Bitmain’s Jihan Wu has criticized SegWit and its Blockstream backers. BTC.TOP’s Jiang Zhuoer even called current Bitcoin a Ponzi scheme, saying: “to be honest I do not care about Bitcoin now, Bitcoin Cash is Bitcoin. I earn by mining Bitcoin, selling it, and buying Bitcoin Cash”.
— Jihan Wu (@JihanWu) November 2, 2017
It’s possible The Flippening has already happened, or at least begun. Some long-timers have told Bitsonline quietly that they’ve divested completely from BTC and gone 100 percent into Bitcoin Cash.
But What About SegWit2x and the New York Agreement?
As we reported yesterday, more companies are withdrawing from the so-called “New York Agreement” (NYA) that defined the roadmap to implement SegWit2x (S2X).
Let’s face it, S2X was a compromise Bitcoiners thought could bring peace, but which no-one really wanted. “Big-blockers” say 2MB and the new “block weight” calculation are still unsatisfactory for on-chain scaling. “Small-blockers”, feeling under attack, now defend 1MB in the code as doggedly as Steve Jobs did the one-button mouse.
Bitcoin Core developers and Blockstream representatives never signed the NYA in the first place. It was always a tentative agreement anyway, with no legal binding. Now, you’ll find both Core supporters and Bitcoin Cash fans signaling “NO2X” — though for different purposes.
In both cases, it’s the principle at stake. So no compromise is possible, it must be a trial by combat — at least by market forces.
We’d like to note that, before the August hard fork even happened, we predicted it may not solve anything. All events since then have only firmed that belief. Bitcoin Cash didn’t wither, the community did not unite behind S2X.
The mainstream press, still trying to wrap its head around Bitcoin, will likely focus on the November fork. But veterans and community insiders know it’s a sideshow — the real battleground is elsewhere. We can’t advise on investments and wouldn’t want to, but if you have a significant stake, make sure you’re paying attention.
Is The Flippening real? What will happen to Bitcoin and Bitcoin Cash in November? Let’s hear your thoughts.
Images via Wikimedia Commons, Twitter
The ‘Bitcoin Cash’ section at Bitsonline is sponsored by Bitcoin Cash. In hopes of bringing cryptocurrency to the masses, Bitcoin Cash has set out to provide a digital currency with on-chain scalability, so everyone can use the blockchain affordably. Learn more at BitcoinCash.org and join the official Telegram Group.