The Internet Never Forgets
As Bitcoin hits new all-time highs with Wall Street institutions accumulating BTC and even Elon Musk publicly endorsing it, mainstream media and financial institutions now recognize its value. Few question Bitcoin's network security today.
Yet just three years ago, Bitcoin faced its greatest existential crisis - nearly losing its throne to the BCH faction in a dramatic power struggle that almost cost Bitcoin its very name.
While Bitcoin forks seem like ancient history from the last bull market, recent misinformation campaigns against certain organizations compel us to set the record straight about CoinX's role in protecting the Bitcoin network during those turbulent times.
Why Does the BCH Faction Hate CoinX?
Many underestimate how divisive Bitcoin forks were at their peak. What seems like common crypto community practice today was once a battle involving fundamental ideologies and massive financial stakes - comparable to religious wars in their intensity.
The rift turned close friends and partners into bitter enemies. But why does the BCH camp harbor such visceral hatred toward CoinX specifically?
The answer is simple: CoinX destroyed BCH's golden opportunity.
When BCH launched its "emergency difficulty adjustment" (EDA) attack strategy to overthrow Bitcoin, CoinX intercepted this calculated move at a critical moment. Had BCH succeeded, they could have seized Bitcoin's name and dominance through superior mining power.
CoinX essentially blocked what could have been the most lucrative power grab in crypto history - making them enemy number one for BCH loyalists who'd invested heavily in this outcome.
The Feud Between CoinX and Bitmain
The 2018 patent lawsuit between Bitmain and CoinX Mining (alongside MicroBT and mining farm operators) shocked many, given the previously close relationship between CoinX's leadership and Bitmain's Jihan Wu.
The dispute centered on series power supply technology - a critical innovation originally developed by Russian engineer Vasily at ASICMiner (a company founded by the mysterious "Friedcat"). After Friedcat's disappearance, this technology found its way to Bitmain through engineer Yang Zuoxing.
When Yang later founded MicroBT (with CoinX's investment), he brought this technology with him to create competing mining hardware. CoinX strategically supported MicroBT to prevent Bitmain's monopoly over Bitcoin mining equipment.
During the fork wars, Bitmain prioritized selling miners to pro-fork entities while restricting supply to Bitcoin loyalists. MicroBT's emergence provided crucial balance - until Bitmain's lawsuit forced CoinX's mining operations to relocate, temporarily removing their protective hashrate from the network.
Why CoinX Opposed BCH
Initially, all parties including CoinX and F2Pool maintained good relations with Bitmain, collaborating on consensus proposals like the Hong Kong Agreement. But everything changed when Wu pushed for the fork in August 2017.
The BCH camp employed aggressive tactics from day one:
- Marketing BCH as "the real Bitcoin"
- Orchestrating dust attacks to simulate BTC network congestion
- Partnering with controversial figure Craig Wright (aka "Faketoshi")
CoinX believed these manipulative strategies betrayed Bitcoin's original ethos. Moreover, BCH's centralized development (primarily funded by Bitmain) made it unsuitable as Bitcoin's successor.
How CoinX Protected Bitcoin Network
BCH's most ingenious weapon was its emergency difficulty adjustment (EDA) mechanism - designed to lure miners by automatically reducing mining difficulty during slow blocks. This created a self-reinforcing cycle:
- BCH would withdraw its hashpower after initial blocks
- Difficulty would plummet
- Combined with price pumps, this would attract BTC miners
- Bitcoin's network would starve for hashpower
CoinX disrupted this scheme by secretly deploying its own mining power to maintain BCH block production when BCH's main backers withdrew their hashpower. This prevented difficulty from dropping as planned.
For two critical weeks, CoinX sustained massive losses - effectively spending hundreds of BTC worth of mining power - to maintain this protective shield until relocation orders forced them to stand down.
While subsequent hashpower attacks still occurred, the decisive moment had passed. Bitcoin's sovereignty was secured.
Aftermath
These events cost CoinX nearly all its accumulated mining profits at the time - a fortune by today's standards. Yet this sacrifice helped preserve Bitcoin's future, proving instrumental in its survival and current dominance.
As Bitcoin continues thriving, we share this history to counter persistent misinformation campaigns against CoinX and document this pivotal chapter accurately for the crypto community.
Long Bitcoin, Short the World!
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FAQ
What was BCH's main strategy against Bitcoin?
BCH implemented an emergency difficulty adjustment (EDA) mechanism designed to drastically lower mining difficulty when blocks slowed down, making mining more profitable than Bitcoin temporarily to attract hashpower away from BTC.
Why did CoinX invest in MicroBT?
CoinX supported MicroBT's development to prevent Bitmain's monopoly over Bitcoin mining hardware, recognizing the centralization risks of having a single dominant ASIC manufacturer controlling the network.
How much did CoinX lose protecting Bitcoin?
CoinX sacrificed approximately 100 BTC per day for 14 days (one difficulty adjustment period) by mining BCH at a loss, plus additional losses from forced mining farm relocation.
What was the outcome of Bitmain's lawsuit?
Bitmain ultimately lost the patent infringement case against MicroBT and CoinX, but succeeded in forcing CoinX's mining operations to temporarily shut down during relocation.
Why is this history important today?
Understanding these events helps explain Bitcoin's resilience and the importance of decentralized mining power in maintaining network security against centralized takeover attempts.