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Bitcoin Cash, halving does not impact prices as expected

Although cryptocurrency market investors await the "big" halving di Bitcoin, there has been another cryptocurrency that has experienced this process: Bitcoin Cash.

Through this mechanism, in fact, the bulk reward provided to the miner of a block BCH it fell from 12,5 coins to 6,25, with a 50% drop and, in fact, with a "halving".

The halving of the Bitcoin fork comes about five weeks after the same event for BTC, with a time gap that is caused by some initial problems with BCH's regulation algorithm in 2017, which led to a difference of 5.000 blocks. between the heights of the blocks of the two networks.

Now, although it is generally believed that thehalving by BTC is a decidedly bullish event for its price, which does not seem to have had a bearing on Bitcoin Cash. Barring a very short-term drop, therefore, the effect of the halving on Bitcoin Cash has been of little impact, so much so that BCH has barely deviated from the range of 260 - 270 dollars in the last two hours.

Bitcoin Cash's inability to react to the event has led some to question whether the cryptocurrency has a relevant active user base, or not. The well-known columnist of the sector, Hodlonaut, summarized what happened in a synthetic way, stating that the event saw “zero hype [and] zero attention”, and going so far as to affirm that the project “is dead”.

A report from the LongHash site indicates that, in the wake of its first official halving, BCH will likely take a major hit to its security, as the decreased value of block rewards reduces the incentive for miners to use their hashing power to put secure the network.

Unfortunately, it appears that this is already taking place. Since the halving to the 630.000 block, which occurred not too many hours ago, not a single block of Bitcoin Cash has been mined, suggesting that miners have shut down their machines in response to the drop in bulk rewards.

It is important to note, however, that a mining difficulty adjustment should take place soon which could revive the security and speed of the Bitcoin Cash network.

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Roberto Rais

A great cryptocurrency expert and a long time collaborator. He actively follows several specialized Blogs in the cryptocurrency sector as Editors

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