Is Bitcoin Cash [BCH] Rallying Because of their Footprint in South Korea, New Developer Fund Proposal?

By Dalmas Ngetich
Published January 27, 2020 Updated January 27, 2020
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Is Bitcoin Cash [BCH] Rallying Because of their Footprint in South Korea, New Developer Fund Proposal?

By Dalmas Ngetich
Published January 27, 2020 Updated January 27, 2020

Bitcoin Cash (BCH), the most valuable of Bitcoin’s spinoffs, is galloping, outperforming the likes of BTC and Bitcoin SV, and the coin is now lodged at fourth, adding an impressive 15% in the last 24 hours, pushing monthly gains to 75%.

The 12.5% Developer Fee

Coinstats
Bitcoin Cash BCH Market Performance chart by Coinstats

It was an event-filled last week, and it seems like BCH bulls are taking advantage of positive developments to add to their positions ahead of halving.

The most conspicuous of them all is the proposal of a Development Fund that will see miners donate 12.5% of their mined coins for development.

Compared with other protocols, Bitcoin and its derived networks don’t have a developer fund.

The proposal by Roger Ver and his team has therefore been received with miner disgruntlement. In the next few months, Bitcoin Cash will also halve and the amount of coins received by the successful miner will drop to 6.25 BCH.

If these rewards are slashed into 8 parts so that 12.5% or one out of the eight parts are set aside for miners, millions of dollars will be shelled on an annual basis to the Hong Kong-based corporation all for Free.

Developer Fund is Bad for BCH

Observers now say this, while it is for Bitcoin Cash’s best intentions, will eventually corrupt the network, heap sell pressure on BCH because coinbases will ultimately be sold to fund the BCH enterprise.

Consequently, this will negatively impact BCH’s hash rate and it is likely that its computing power, which is already low, will fall in tandem.

Activation requires a hard fork such that miners fail to remit the 12.5% of their rewards won’t receive their rewards.

It is their view that this proposed “developer fee” is against Satoshi wishes and has no place in the Bitcoin Cash ecosystem.

Bitcoin Cash as Money, Partners with Mecon Cash

Meanwhile, Bitcoin Cash has partnered with Mecon Cash in a deal that will see BCH withdrawals enabled at their M.Pay platform.

M.Pay has integrated with over 13,000 ATMs across South Korea. This announcement is in line with Bitcoin Cash’s ambition of being a true electronic cash.

Jo Jae Do, the chairman of Mecon Cash, said:

“Through our partnership with Bitcoin.com, we will grow the presence of Bitcoin Cash throughout the Korean market starting with the ATM withdrawal services. We have huge applications coming up where the close collaboration between Mecon Cash and Bitcoin.com will see positive synergies in the upcoming future not only in the Korean market but also the global market.”

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Dalmas Ngetich
335 Articles
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich

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