The popularity of Bitcoin, the topmost digital currency, is surprise to no one. The bitcoin price crash in the first quarter was jaw dropping. Now the 25% Bitcoin price revival is in the headlines.
Antpool, the world’s largest Bitcoin [BTC] mining pool operated by Bitmain and led by Jihan Wu has recently started to burn 12% of Bitcoin Cash [BCH] which was earned by the mining pool as transaction fees. The mining fees are being sent to a black hole address.
The issue is creating a verbal spat between backers of Bitcoin and Bitcoin Cash, which was spun off last year. Through a war of words playing out on Twitter and Facebook, some of the largest holders of both cryptocurrencies are attempting to influence the coins’ prices after seeing significant losses since last year.
On April 20, Antpool, whose users’ computers confirm 8.2 percent of all Bitcoin Cash transactions, announced on Twitter and Facebook that it will voluntarily “burn” 12 percent of the coins it receives. The mining outfit is sending a portion of the fees it receives “to a black hole address.”
Antpool explains that it understands that BCH will be a cryptocurrency that will be widely used and spent but holding investors are also critical to the economy.
“Some bitcoin cash investors may have noticed that Antpool has recently begun burning BCH by sending mining fees to a black hole address with each block mined — Twelve percent of the transaction fees earned by the mining pool are burnt — This is voluntary and we want to explain why this burning might be good for BCH as a whole,”
“While having active users spending BCH is very important for the ecosystem, having investors who hold BCH is also a fundamental requirement for maintaining a strong economy — Without these holders, BCH’s exchange value loses significant support.”
Bitcoin Cash has the advantage of lower transaction fees and faster transaction times. The more widely used Bitcoin has been testing a new technology, called Lightning Network, that, if deployed at scale, could significantly cut Bitcoin Cash’s advantage, Lucas Nuzzi, a senior analyst at Digital Asset Research, said in an email.
The burning announcement also denounces cryptocurrency ‘maximalism’ and says that type of idealism is “dangerous” thinking. This is because Antpool believes the community benefits from the advancement of application tokens which will bring forth an arrangement that pushes the growth of an “on-chain transaction explosion.”
Furthermore, Antpool is asking for other mining pools to join in on the bitcoin cash burning session.
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