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The core of the BCH fork power struggle is the technical route dispute between the two major factions of the BCH community in 2018, which ultimately evolved into a power war, with ordinary investors becoming the victims of this game of interests.
BCH was born from a Bitcoin hard fork in August 2017, with the Bitcoin ABC team, led by Wu Jihan, controlling the core development. As planned, a hard fork upgrade was to take place in November 2018, with the ABC team intending to add new opcodes to support smart contract ecosystem expansion; however, the nChain team, led by "Australia's Satoshi" CSW, opposed this and announced the launch of an incompatible BSV client, advocating for BCH to return to Bitcoin's original protocol, and also planned to increase the block size from 32M to 128M, leading to a complete public confrontation between the two sides.
After the differences could not be reconciled, both sides began to compete for computing power, as the size of the computing power determined which chain could become the main chain after the fork. CSW not only held summits to woo miners but also partnered with mining pools to invest money in leasing computing power; Bitmain, under Wu Jihan, also mobilized mining pool computing power to respond. During this period, both sides attacked each other on social platforms, while related stakeholders constantly exaggerated the impact of the power struggle's outcome on coin prices, inducing investors to follow the trend and buy tokens corresponding to their supported factions, with many retail investors blindly entering the market with the mindset of making price differences. At that time, data showed that mining pools supporting BSV once occupied 72%-80% of the total BCH network computing power, causing the market sentiment to fluctuate violently.
On November 16, 2018, BCH successfully hard forked into two currencies: BCHABC and BCHSV. This power struggle was costly, with estimates suggesting that the daily mining cost at that time could have skyrocketed to 100 million yuan, with a large amount of computing power resources wasted in meaningless competition. More critically, after the fork, market expectations for the two currencies quickly cooled, and combined with the bursting of the bubble created by prior speculation, both prices plummeted significantly. Ordinary investors, lacking professional information channels, were unable to predict the market trend after the fork, and due to following the trend in early operations, held positions at high levels, ultimately suffering painful asset losses.
The SOL technical aspect shows a weak pattern, with prices running below the short-term moving averages. Each rebound quickly falls back, and shrinking volume indicates capital outflow. There is still space for further decline, and if it rebounds to the resistance zone, it is advisable to short.
Operational suggestion: Short around 132-135, targeting 125-122. If it breaks down, continue to target lower. #加密市场观察 #加密市场反弹 $SOL $BTC $ETH
The SOL technical aspect shows a weak pattern, with prices running below the short-term moving averages. Each rebound quickly falls back, and shrinking volume indicates capital outflow. There is still space for further decline, and if it rebounds to the resistance zone, it is advisable to short.
Operational suggestion: Short around 132-135, targeting 125-122. If it breaks down, continue to target lower. #加密市场观察 #加密市场反弹 $SOL $BTC $ETH
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The core of the BCH fork power struggle is the technical route dispute between the two major factions of the BCH community in 2018, which ultimately evolved into a power war, with ordinary investors becoming the victims of this game of interests.
BCH was born from a Bitcoin hard fork in August 2017, with the Bitcoin ABC team, led by Wu Jihan, controlling the core development. As planned, a hard fork upgrade was to take place in November 2018, with the ABC team intending to add new opcodes to support smart contract ecosystem expansion; however, the nChain team, led by "Australia's Satoshi" CSW, opposed this and announced the launch of an incompatible BSV client, advocating for BCH to return to Bitcoin's original protocol, and also planned to increase the block size from 32M to 128M, leading to a complete public confrontation between the two sides.
After the differences could not be reconciled, both sides began to compete for computing power, as the size of the computing power determined which chain could become the main chain after the fork. CSW not only held summits to woo miners but also partnered with mining pools to invest money in leasing computing power; Bitmain, under Wu Jihan, also mobilized mining pool computing power to respond. During this period, both sides attacked each other on social platforms, while related stakeholders constantly exaggerated the impact of the power struggle's outcome on coin prices, inducing investors to follow the trend and buy tokens corresponding to their supported factions, with many retail investors blindly entering the market with the mindset of making price differences. At that time, data showed that mining pools supporting BSV once occupied 72%-80% of the total BCH network computing power, causing the market sentiment to fluctuate violently.
On November 16, 2018, BCH successfully hard forked into two currencies: BCHABC and BCHSV. This power struggle was costly, with estimates suggesting that the daily mining cost at that time could have skyrocketed to 100 million yuan, with a large amount of computing power resources wasted in meaningless competition. More critically, after the fork, market expectations for the two currencies quickly cooled, and combined with the bursting of the bubble created by prior speculation, both prices plummeted significantly. Ordinary investors, lacking professional information channels, were unable to predict the market trend after the fork, and due to following the trend in early operations, held positions at high levels, ultimately suffering painful asset losses.