Ready for the upcoming Bitcoin Cash (BCH) cut in half? This is one of the most important events in 2020. For this reason, we are trying to answer various questions on this topic. Will the price of the entire crypto market rise or fall? It’s time to read this post before it’s too late.
Find out more about Bitcoin Cash
As is well known, Bitcoin Cash (BCH) was developed in 2017 as a Bitcoin Hard Fork. For this reason, crypto, which ranks 5th in the crypto market today, has many of the features of BTC. One of them and also one of the most characteristic, the halving.
However, one of the messages that not many know about is that this will be the first cut in half of Bitcoin cash since its inception.
This is nothing more than halving the rewards Crypto Miner receives for their important work in validating transactions. Since it shares the PoW validation method like Bitcoin.
This is a primarily anti-inflation trait that helps BCH and BTC not have the same problems that Fiat Money has had for many years.
BCH is at risk of being halved
This event is the first of three Bitcoin family names to be halved this year. The other two are Bitcoin SV (BSV) and Bitcoin (BTC).
This will take place on April 7th at exactly the following times.
- Venezuela and Chile 10:25 a.m.
- Argentina 🇦🇷 11:25 a.m.
- Colombia, Ecuador and Peru, 9:25 a.m.
- Spain 🇪🇸 4:25 p.m.
- United States 🇺🇸 (East) 10:25 a.m. and West 7:25 a.m.
Bitcoin Cash is halved in block number 630,000. And it will reduce the reward for mining each block from BCH 12.5 (USD 3,137) to BCH 6.25 (USD 1,568). As we can see, exactly half.
The approximate dismantling time for each block is currently 10 minutes.
Possible security problems
Unfortunately, BCH doesn’t have the depth of the ecosystem that Bitcoin has. This means that not many miners support the hard fork.
One of the most unpleasant consequences of this is the fact that Bitcoin Cash does not have a lot of processing power and has therefore suffered 51% of the attacks in the past.
And this kind of historical event, like the upcoming halving of Bitcoin Cash, arouses fear of past demons. Because the most important people affected are the weakest link in the network.
BSV developer Brad Jasper said that the halving in the short term is a poor prognosis for the price of the small altcoins that have been canceled by Bitcoin.
Since both BCH and BSV come from Bitcoin, migration from one crypto to another doesn’t cost as much crypto miner.
“The main source of income for miners is block rewards. Halving these old coins leads to migration to greener pastures and to a more lucrative blockchain. ”
The miners have already started migrating
If you could pay more for your own work, would you go or stay? This is the tirade that many miners are currently in, just a few hours from Bitcoin Cash Halving.
Although some cryptanalysts estimate that this halving may not have a major impact on the price of BCH. But definitely many of them came to the same prediction. “The Hashrat will be hit hardest, as many miners started migrating to BTC before it halved in a month and a half“”
The cryptocurrency market analysis company, Coin Metrics, said recently:
“Both halving Bitcoin Cash and halving Bitcoin SV will increase selling pressure on these altcoins as the miners of these two get rid of their tokens to mine Bitcoin.”
There is a real risk that the hash rate in the BSV and BCH blockchain will temporarily halve. At least until BTC presents its own halving.
There are many internal problems
It is impossible how tomorrow’s future of Bitcoin Cash will look like. But the signs in the past few months have not been very pleasant.
Within his development team, he’s pursuing a dispute over a possible Desarrollador developer tax that could increase the longer-term economic impact of halving.
In addition, there have been reports that Bitcoin.com, led by Roger Ver, the supporter of Bitcoin Cash, has fired half of its workforce.