Controversy Continues in Bitcoin Cash Community on Miner Tax

Controversy Continues in Bitcoin Cash Community on Miner Tax

The Bitcoin Cash (BCH) community has split once again over the initiative of implementing a miner tax. However, a large number of BCH enthusiasts are worried about the decision.

For dissidents, the good news is that the tax was reduced from 12.5 percent to 5 percent of block rewards. However, the reason for the current opposition was the ideology behind imposing tax on miners in the first place.

Bitcoin ABC has announced its support for BTC. This support has helped the company to become one of the tax’s primary beneficiaries.

However, rival node client Bitcoin Unlimited has opposed the tax, as they are unlikely to benefit from it in any way.

Can miners choose tax beneficiaries?

A recent blog of Jiang Zhuoer has considered Bitcoin ABC, BCHD, and Electron Cash as beneficiaries of the donation. However, it is not clear if the tax will go directly to these entities or the miners securing the block can choose the beneficiary of their tax.

Anyway, many users are disappointed as the decision may allow developers and miners to introduce top-down policies.

Cryptolydian earlier reported Charlie Lee, creator of Litecoin, as suggesting that miners should donate to finance the cryptocurrency development project. 

Unlike Bitcoin Cash, LTC miners can freely decide where to pay the tax, such as Litecoin.com or the Lite school. However, in the case of BCH, a Hong Kong corporation will collect the funds to legally distribute them.

Crypto entrepreneur Roger Ver, who was once known as ‘Bitcoin Jesus’, has previously launched an attack on the number-one cryptocurrency, while promoting Bitcoin Cash (BCH), a spin-off of Bitcoin and the fourth-largest cryptocurrency by market map.

Ver accused the Bitcoin of resulting in high fees, of being slow, as well as unreliable and reversible. He also claimed that Bitcoin is subject to severe centralization and therefore is controlled by greedy developers.

The fourth largest cryptocurrency Bitcoin Cash (BCH) may move higher towards ₿0.053 provided that it does not lose its key support at ₿0.039 any time soon, said cryptocurrency analyst @imBagsy.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.