BCH Hash War Is Causing Massive Losses For Miners According To BitMEX Research
BCH Hash War Is Causing Massive Losses For Miners
As expected, the Bitcoin Cash hard fork has sparked a ‘hash war’ between the two competing factions, Bitcoin ABC and Bitcoin SV. Now, a research conducted by BitMEX has revealed that Bitcoin Cash miners have incurred losses exceeding $6 million since the fork. Of the two sides, Bitcoin SV has suffered more.
Due to insufficient liquidity, the losses or profits gained from mining Bitcoin SV and Bitcoin Cash can only be presented on paper. That being said, the losses would become more apparent if the coins were substituted with either Bitcoin or fiat money. This is because the actual rates are way lower than the estimates used.
Another assumption made by the research is that a majority of the rented hashing power is either being used for mining or leased out. However, the situation on the ground is entirely different; most of BCH miners own mining rigs and have varying reasons for mining BCH.
Although the used figures are mere estimates, they indicate that there are outright losers in the ongoing hash war. Moreover, it demonstrates that present-day crypto mining is affected by several factors, including the blockchain, the cryptocurrency and the mining pool chosen by the miner. In addition, the energy consumption rate and the type of mining rig also impact the profitability of a mining venture.
Since its inception, Bitcoin Cash has been in Bitcoin’s shadow. The pressure to match Bitcoin was further increased by the plummeting of the crypto markets. Regardless, the crypto community will continue the new Bitcoin Cash.