Bitcoin Cash (BCH) just completed its first-ever halving since its 2017 fork away from Bitcoin (BTC). The fifth-largest crypto asset by market capitalization saw its miner rewards slashed in half from 12.5 BCH to 6.25 BCH to BCH 6.25 per block and thereby reducing the supply of new coins circulating the market.
The much anticipated halving occurred at 10:19 AM UTC on Wednesday, April 8 at block number 630,000, which was uncovered by popular mining company, Antpool. This event saw the price of Bitcoin Cash briefly touch its highest price point in over three weeks as BCH soared above the $270 mark.
Nevertheless, BCH/USD has not experienced any significant gains, despite many analysts hoping that the reduced supply rate would spur prices to new heights. At the time of writing, BCH is trading at the $260 – $270 price levels. Still, it would be worth monitoring the price in the coming weeks, especially with Bitcoin SV (BSV), a BCH fork-away project, set to experience its own halving today, April 10.
Both BCH and BSV are having their halving events early this year due to BCH temporarily having a different algorithm, which dictated the adjustment speed of its mining difficulty, which in turn, led to a faster block creation process for a while.
How are BCH Miners Affected?
In the month of March alone, Bitcoin Cash miners generated $13.34 million just from block subsidies and just over $4,000 from fees.
It’s still early days, but BCH prices remain at the same level as they did in the previous month, miners will be set to generate only around $6.7 million from subsidies, thanks to the halving.
Of course, halvings are generally expected to be bullish for the cryptocurrency, but some analysts believe this may not be the case in this instance. Managing partner at Unbound Capital, Zach Resnick posited that since halvings essentially result in a drop in mining profitability, small-time miners may be inclined to offload their holdings and shut down operations.
“The conventional crypto wisdom that halvings magically induce a bull run such that the real USD value of miner revenue does not cut in half is naive wishful thinking, encouraging investors to be fooled by correlation/causation,” he stated.
The Next BCH Halving is Slated for 2024
As the years go by and the network continues to progress, Bitcoin Cash is expected to undergo 63 more halvings with the next one set for 2024. The BCH market is far from perfect and there really is no telling how the cryptocurrency will fare in the coming years. However, proponents argue that in spite of its current limitations, BCH and other crypto assets are still preferable compared to legacy financial systems like central banks and fractional banking practices.
The current market cap of Bitcoin Cash stands at around $4.9 billion, a paltry sum compared to Bitcoin’s current market capitalization at over $133 billion. In the meantime, all eyes will be on three key factors of BCH — Price, Hashrate, and Mining Difficulty.
What’re your thoughts on this halving? Will it propel BCH to new all-time highs or will we see a repeat of Litecoin’s post halving woes?
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