The Bitcoin Cash halving event took place last week, and despite a small price increase, profits have completely evaporated. Worse, miners are leaving the ecosystem, which has caused the blockchain hash rate to drop.
Bitcoin cash hash rate is falling
The drop in the hash rate for Bitcoin Cash (BCH) was downright drastic. Since April 6, it has dropped 60% to a low level that has not been seen since April 2019.
Halving appears to have increased selling pressure. Some analysts fear that this could be a bad sign for Bitcoin after halving in the next month.
However, others are not so convinced. According to a bold forecast by Morgan Creek Digital, Bitcoin will lower the price after halving before hitting an all-time high in September.
As of now, Bitcoin Cash is trading at $ 221 and down 4.33% on the day, along with the rest of the market that is in the red today. Despite the sudden surge of $ 276 on April 8, the halving did not produce sustained upward momentum.
Could it be surrender?
It’s too early to know if Bitcoin Cash Miner is switching to Bitcoin Ming. However, Bitcoin’s hash rate continues to rise after hitting a local low in mid-March.
As analyst Mati Greenspan (@MatiGreenspan) writes, this could be the surrender event for the Bitcoin cash hashrate – assuming it falls lower. As a result, we saw a further drop in the Bitcoin cash price.
According to a recent study published by BeInCrypto, there is evidence that Bitcoin’s hashrate dominance suggests that forks like BCH and BSV are significantly overpriced.
Bitcoin Cash Hashrate Surrender.
After halving on April 8, mining BCH is no longer profitable, causing many miners to switch to BTC. pic.twitter.com/vISDMX5l7z
– Mati Grrrrrreenspan (Tweets are not trade advice) (@MatiGreenspan) April 13, 2020
It’s currently easier than ever to launch a 51% attack on the Bitcoin Cash blockchain. With the hash power rent, a malicious actor could do it for less than $ 10,000. That’s incredibly cheap for a $ 4 billion crypto project.
Long-term security therefore remains in serious doubt. Worse, it can be a bad sign of Bitcoin. As a Reddit user writes, Bitcoin Cash adjusts its difficulty level every 24 hours, while BTC does this every 14 days. If BTC crashed similarly from its hash after lingering, it would be catastrophic.
The BTC halving is planned for mid-May.
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