China-based Bixin, a wallet and mining services provider for Bitcoin today put out an announcement concerning August 1st, whereby they say Bitcoin Cash (BCC) may cause a Hashrate fluctuation and in the worst case, disorder the Bitcoin network by creating a Hashrate black hole. This would affect the generation of blocks, with Bixin stating that “Bitcoin as a whole might be severely affected.”
Yesterday, the company told its users they would be exchanging all Bixin customer accounts claimed BCC to BTC and proportionally distributing the swaps as rewards over time.
The statement released today is of a different kind. Bixin pronounced they stand firm on protecting the Bitcoin network, urging others to do the same, warning of risks. Their full statement is below:
On Aug. 1, Bitcoin Cash (BCC) will go live, widely deemed an altcoin. While it follows the same mining algorithm as Bitcoin, BCC uses a different unilateral Difficulty adjustment mechanism, which is concerning. Namely, when the Hashrate decreases and block generation slows down, the Difficulty will go down dynamically; however, when the Hashrate increases and block generation speeds up, due to the static adjustment mechanism, the Difficulty will remain unchanged until the Next Difficulty kicks in.
In this regard, the birth of BCC may cause a Hashrate fluctuation and, in the worst case, disrupt the Bitcoin network by creating a Hashrate black hole and affecting the generation of blocks. Bitcoin as a whole might be severely affected. Thus, it is vital to defend the security of Bitcoin network.
Bixin is most concerned with the long-term prosperity of Bitcoin. Therefore, to protect the safety of the network, Bixin promises this: all Hashrate under Bixin will back the Bitcoin network. Meanwhile, we will work with all players in the Bitcoin community, both companies and individuals, to protect the safety of the Bitcoin network so that Bitcoin can go through this period smoothly.
Bixin would like to appeal to all the mining pools and miners to stay rational. Rather than seeking short-term benefits at the price of losing more in the future, let us adhere to the Bitcoin network together; let us protect the safety of the network together; let us defend the long-term benefits and development of Bitcoin together.
Bixin team
July 28, 2017
