Bitcoin Cash price moves steady as hash rate drops after halving

Author: Liang CHE

Source: bitpush.news

At 20:19 Beijing time on April 8, the Bitcoin Cash blockchain reached a block height of 630,000, completing the first halving, with the block reward reduced by 50% from 12.5 BCH to 6.25 BCH.

After the halving, according to Bitpush data, the price of Bitcoin Cash continued to fluctuate slightly around $260. Regarding the fact that its price did not respond significantly to the halving, well-known crypto commentator Hodlonaut said that this was due to Bitcoin Cash's "zero hype and zero attention", so the project was "dead", and his view was strongly opposed by the Bitcoin Cash community.

A report from cryptocurrency data news site LongHash suggests that Bitcoin Cash will “take a hit” in terms of security after its first official halving. LongHash wrote that the drop in block rewards “will lead to a decrease in security, as the lower value of block rewards reduces the incentive for miners to use their hashing power to secure the network.”

This seems to be happening, as Bitcoin Cash mined its first new block after the halving an hour and a half after the reward halving occurred, indicating that miners have shut down their mining machines to cope with the decline in block rewards. Data from Ant Mining Pool shows that after the halving, the computing power of the Bitcoin Cash network dropped from 1805 PH/s to 1169 PH/s, a drop of 35%.

However, the mining difficulty will be adjusted accordingly, which will restore the security and speed of the Bitcoin Cash network.

Still, Bitcoin Cash miners are having trouble making money. According to F2Pool, at BCH’s current price and the network’s latest hash rate, various mining rigs launched in 2018 and early 2019 are now generating negative profits on a daily basis, assuming an average electricity cost of $0.05 per kilowatt. Even some of the latest miners that came to market late last year and early 2020 have seen their gross margins drop to around 10%. Only the most powerful miners, which have yet to hit the market on a large scale, can generate profits of more than 30%.

Regarding the halving of Bitcoin Cash, according to Wu Blockchain, Bitmain founder Jihan Wu said in a BCH community live broadcast that the most important key to Bitcoin Cash is to build an ecosystem. How many people can use Bitcoin Cash and stay in this ecosystem depends on how many users there are in the next 3 to 4 years. It is necessary to make good technical and ecological reserves on the eve of the big explosion of cryptocurrency.

Jiang Zhuoer, founder of Litecoin Mining Pool, said in the live broadcast that the halving is not a good news, but a continuous good news. The halving market will start after the Bitcoin halving, and Bitcoin Cash will be affected by the chain effect.

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