Bitcoin Cash underwent its mining rewards halving yesterday, hash rate plummeted
New data indicates that the Bitcoin Cash hashrate has dropped since miners’ block rewards halved after the Bitcoin Halving event. Bitcoin Cash is a hard fork of Bitcoin, which was born in 2017. On Wednesday, the cryptocurrency experienced its first Halving, reducing block rewards from 12.5 BCH to 6.25 BCH.
Bitcoin Cash’s hash rate plummeted after Halving
Data from Coin.Dance, the hash rate tracking platform BTC, BCH, BSV, shows that the computational power on the Bitcoin Cash network has plummeted on April 8. After holding above 4,000 PH/s for a while, the BCH’s hash rate for the day stopped at about 1,900 PH/s. Since the beginning of April 9, this figure has dropped to as low as 421 PH/s. The latest Coin.Dance data shows that the BCH hash rate has recovered to 2,000 PH/s.
In March, Bitcoin Cash miners estimated to earn $ 13.34 million from block rewards and $ 4,200 from transaction validation fees. However, after Halving Bitcoin Cash, this revenue figure will surely change drastically.
Importantly, a well-known investor is now noting that he believes the event has drastically discounted for Bitcoin Cash, as it has the potential to reduce the overall cybersecurity of the cryptocurrency. This comes as the cost to conduct a 51% attack on the PoW crypto dives, now requiring only $ 7,500 for a 1-hour attack.
The sharp decline in block rewards for miners significantly reduces their profits and likely leading to a significant amount of capitulation amongst smaller, less well funds, BCH mining operations.
While many investors and analysts are aiming for Bitcoin’s mining reward to be halved, the event may not raise prices for BCH, mainly because it leads to a decline in network security.
Spencer Noon, the head of crypto investments at DTC Capital, said miner revenue plays an integral role in a network’s security budget, thus making BCH’s already thin mining profitability even less attractive to miners.
The Halvening is unquestionably bearish for $BCH
As a reminder:
Miner Revenue = Fees + Block Rewards
Miner Revenue = Security Budget
The most fees BCH miners made in a single day over the past year was 358 bucks
Now Block Rewards cut to <$250k day
Miners don’t work for free
— Spencer Noon (@spencernoon) April 8, 2020
The network security implications of the recent Halving are already growing clear, as the cost to conduct a 51 percent PoW attack for 1 hour on Bitcoin Cash has plummeted, cratering from $ 22,000 before the Halving to $ 7,500 presently.
Lina Seiche, a popular Bitcoin commentator and the marketing director at BTSE, said:
The cost to attack Bcash for 1 hour is now $7,517, down from $22,000 yesterday. pic.twitter.com/q8tmdkRSaq
— Lina Seiche (@LinaSeiche) April 9, 2020
While comparing this cost to the nearly $ 600,000 required to perform a 1-hour attack on Bitcoin, it developed how weak Bitcoin Cash is currently.
Bitcoin SV is officially halving, will the traces of Bitcoin Cash be repeated?
Bitcoin SV has just completed its first Halving, after nearly two years of separation from Bitcoin Cash (BCH) in 2018. This Halving will reduce the reward from 12.5 to 6.25 BSV.
BSV’s Halving arrived shortly after BCH halving on April 8 and took place a month before Bitcoin’s (BTC) Halving officially took place.
Bitcoin SV is currently priced at $ 210.87, down from the previous $ 225 threshold. Since the Halving, BCH has dropped from 278 to 256.21 USD. BSV and BCH both have a total supply of 21 million coins, similar to the Bitcoin (BTC) host system.
The birth of BSV in 2018
After the two communities had competition, the Bitcoin network split the chain in 2017, creating two assets, Bitcoin Core and Bitcoin Cash. Just a year later, Bitcoin Cash continued to have internal conflicts, and the community continued to split the Bitcoin Cash chain and create Bitcoin SV.
When the Halving of BCH took place, previous analyzes showed that the network of this asset witnessed the miners leaving accompanied by markedly changed profits.
After halving, at the time of writing, BSV was still down 5.3% for the day.
- Bitcoin Cash Underwent Its Halving At Block Height 630,00, But Could Only Add Up To Its Current List Of Burdens
- Bitcoin Cash Halving Will Occur On Wednesday At Block 630,000, Will BCH Offer Us A Peek Into What The Future Holds?