While the price of Bitcoin Cash was on the rise over the weekend, plans were consolidated to repair the broken difficulty adjustment with a hard fork on November 13. If the cryptocurrency aims to be taken seriously, this is needed badly.
On the weekend the price of Bitcoin Cash jumped from $320 to more than $460, or from 0.054 to 0.071 BTC. The massive rise was orchestrated by the growing likelihood of the SegWit2x hard fork to fail and the idea of Bitcoin.com that Bitcoin Cash is the real Bitcoin.
All of this ignores that the difficulty algorithm of Bitcoin Cash is terribly broken. To understand why, we need to reach back a bit; Bitcoin adjusts the difficulty of mining for each sequence of 2016 blocks – which is about every two weeks – so that a new block is generated every ten minutes. So far, so good.
However, if two coins have the same mining algorithm, they compete for the same hash power. This has terrible implications for the weaker, and usually, cheaper coin; while the miners migrate to the more profitable coin, the difficulty remains the same for 2016 blocks, and the network needs more and more time to add new blocks. The blockchain freezes, and, as a final consequence, completely grind to a halt…