Bitcoin Cash Proposes New 12.5% Tax On Mined BCH Coins

The Bitcoin Cash (BCH) network is moving forward with a new infrastructure funding plan that would allow developers to receive funding and allow the whole network to enhance its solutions. This is a very controversial proposal because all miners will have to donate to developers through a tax of 12.5% over the coins they mine. In a recent blog post released by Jian Zhuoer, the CEO of BTC. Top, one of the most popular mining pools on the Bitcoin Cash network, explained a detailed plan on how to fund BCH developers

The Bitcoin Cash (BCH) network is moving forward with a new infrastructure funding plan that would allow developers to receive funding and allow the whole network to enhance its solutions. This is a very controversial proposal because all miners will have to donate to developers through a tax of 12.5% over the coins they mine. In a recent blog post released by Jian Zhuoer, the CEO of BTC. Top, one of the most popular mining pools on the Bitcoin Cash network, explained a detailed plan on how to fund BCH developers. There are some reasons why the current corporate donation system for developers doesn’t work as it should. The first thing he said is that corporate donors have an undue influence on developers. In general, this is something that has affected the decentralization of Bitcoin (BTC). At the same time, just a few companies are now committed to funding different projects. One of the main issues is the fact that there are some free-riders.This why they consider that the best thing to do is to create a tax for miners that will be used in order to develop the BCH environment and accelerate the adoption of Bitcoin Cash around the world.One of the things Zhuoer said regarding the controversy about whether or not to “donate” is that China’s GDP has been growing at an amazing rate since the implementation of its reforms. In order for this to happen, the Chinese politician Deg Xiaoping explained that there are three things to take into account: Cat Philosophy: No matter white cat or black cat, a cath catches rats is a good cat. River philosophy: To cross the river by touching the stones.Non-debate theory: Non-debate is to gain time to work hard. When you debate, everything becomes more complicated and it wastes time. Nothing can be done. Don’t debate, and just try, Be brave and experiment.At the moment there are several major BCH mining pools that are getting ready to implement a donation plan for the whole ecosystem. This would provide enough funds for BCH developers that will accelerate the BCH development before the next bull market in the coming years.

With this new tax, they expect the ratio between BCH and BTC to become higher. That means BCH could get closer to BTC in the future from the current 4%. One of the measures that Bitcoin Cash miners will take in order to convince others to donate will be to orphan blocks that do not follow this donation plan. The report reads as follows:

“To ensure participation and include subsidization from the whole pool of SHA-256 mining, miners will orphan BCH blocks that do not follow the plan. This is needed to avoid a tragedy of the commons.”

Moreover, the funds will be sent to a Hong Kong corporation that has been set up to legally accept and disperse the funds. The funds will then be used to pay for development and contributions to full node implementations as well as other critical infrastructure. Some of the supporters of this new proposal include Jian Zhuoer, who wrote the article explaining what is this 12.5% tax all about, Jihan Wu, from Antpool and BTC.com, Haipo Yang from ViaBTC and Roger Ver from Bitcoin.com.If everything goes as planned, the donation campaign will end up with $6,075,000 million donated to the organization that will eventually be using the funds to expand BCH development. The initiative is only going to last between May 15th and November 15th and there is no “masternode” voting. The decision will be taken by miners to fund the development directly. According to Zhuoer, it makes sense to activate this feature with the May 15th protocol upgrade. This will facilitate consistent rollout among ecosystem participants. At the time of writing this article, Bitcoin Cash is the 4th largest cryptocurrency in the market with a valuation of $5.85 billion and a price per coin of $320. Despite this new proposal that seems to be good on behalf of the Bitcoin Cash ecosystem, the virtual currency is losing 7% of its value in the last 24 hours. Bitcoin SV (BSV), the cryptocurrency that surprised most of us in the last few weeks due to an astonishing 100% increase in a short period of time. Is now falling by 17.04%. BSV is a hard fork of Bitcoin Cash.

Trade With AltSignals And BCH This Bull Market

The cryptocurrency market is turning bullish in the last few weeks and this could be a great opportunity for traders to enter the space and open new positions with Bitcoin Cash as a strategic asset. Warning: All the information provided by AltSignals and its writers shouldn’t be considered by any means investment advice. All the data shown in these articles is educational and should be taken as such. Always request professional advice before investing and never invest more than what you are able to lose. Remember that the cryptocurrency market is very volatile and that it could be very harmful to your financial life. The long term remains intact and starting to plan a new portfolio would certainly take into account Bitcoin Cash. Long term trading strategies require more patience than ability, but if you perform swing trading or day trading, the best thing to do is to always find a profitable strategy. Always enter when you consider the price is cheap and set profit targets to leaver and close your position. The new Bitcoin Cash tax that will last for six months would certainly influence the way in which this virtual currency will behave in the future. If you consider that the digital asset will move forward with new projects after gathering money from miners, then this could be a good moment to enter. Moreover, the bull market in the crypto market could also be a good reason to move forward with investments. AltSignals could be a good solution for day and swing traders that want to improve their trading strategies and invest in Bitcoin Cash. AltSignals is a crypto trading signals provider that would let you know when it is a good time to enter or leave a certain position. By using Telegram, AltSignals could provide you with clear information about Bitcoin Cash, considering that they operate with leverage through BitMex and on the Binance spot exchange.These signals do not mean that you must follow them 100% of the time. They help you understand when it is a good moment to open or close a trade related to Bitcoin Cash. You can always set up alerts that would help you detect the moments in which Bitcoin Cash is being handled by this team of experts. AltSignals has been operating in the market for a long period of time and it has been offering profitable crypto and FX trading signals to thousands of users in the space. Indeed, the services provided by this company became one of the most trusted in the market and in the world.

At the time of writing this article, Bitcoin Cash is being traded around $380 and it has a market capitalization of almost $7 billion. This makes of it the fourth largest virtual currency after Bitcoin (BTC), Ethereum (ETH) and XRP. Since the beginning of the year, Bitcoin Cash moved from below $200 per coin to over $390 a few days ago. That represents an increase of 95% in just a few weeks. The trend may continue in the future if the bull market takes off in the coming months. Nonetheless, it may take a longer time for BCH to surpass its previous all-time high registered a few years ago. Moreover, Bitcoin Cash is also expected to be halving in just a few months, as Bitcoin will in May this year. This will reduce the rewards from miners from 12.5 BCH to 6.25 BCH. Bitcoin mining rewards will be reduced in the same proportion as BCH. That means that there is going to be a lower amount of BCH issued in the market since May. This could be very positive for the virtual currency if the demand for the asset increases. That could eventually push BCH’s price higher in the future. Nonetheless, it is always a good option to use AltSignals to improve the trading strategies you have, add BCH to your portfolio and be profitable while trading virtual currencies.

Conclusion

In this article, we aimed at sharing with you which are the main possibilities you have to invest in Bitcoin Cash. Before that, we explained to you what is the new tax proposal for Bitcoin Cash and how it could affect BCH miners in the future. We also shared with you how it would be a good option to start using AltSignals as a provider of crypto trading signals to increase your profits and start handling Bitcoin Cash in a more professional way.

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