Phoenix BCH Miner Elevates Hashrate to New Highs, Raising Concerns Within the Community

The rise in hashrate allocated by unknown miner Phoenix to the BCH network has raised questions about the true motives of this action. Phoenix took BCHs hashrate to over 10 EH/s, processing a relevant part of all the blocks and receiving the correspondent subsidy during the last days, but the community warns this might be a preparation for an attack.

BCH Reaches Hashrate ATH, Phoenix Miner Hashrate Allocation Sparks Speculation

The Bitcoin Cash (BCH) network has been taken by storm, as its hashrate has increased almost threefold with the introduction of a new miner, Phoenix. Phoenix processed 88% of all the blocks mined on June 3, taking the BCH network hashrate to all-time high (ATH) numbers of over 10 EH/s, capturing a good part of all the fresh BCH mining subsidy.

Nonetheless, the unusual nature of the situation, especially considering the recent market downturn, has awakened concerns in the Bitcoin Cash community, given that there is no apparent reason for this action. The Bitcoin Cash Podcast stated that this might be spurred by the intention of a miner to obtain BCH before an event that might spike exchanges from BTC to BCH, like the upcoming Mt. Gox coin release.

Another opinion touches on the possibility that this might be a preparation for an attack on the chain. It stated:

Large amounts of hashrate appearing against profitability is v unusual – price usually leads hash. Generally a hashrate add attack > hashrate rug attack, so giving time for BCH DAA makes this less likely.

This sudden inflow of hashrate might affect other miners, who would have to reallocate to BTC to remain profitable, or the BCH price must rise. The Bitcoin Cash Podcast stressed that “at some point, the price will have to start mooning to reflect the increased hashrate confidence.”

The last occasion when BCH hashrate rose similarly was during March, and this behavior was followed by a price increase that took BCH circa $700.