Bitcoin Cash Halving Official Done, Reward Cut in Half But BCH Price Is Flexing for Now
- Bitcoin Cash block rewards now fallen to 6.25 BCH but before last few blocks before halving took 25 minutes to mine
- BCH price in the green but selling pressure expected
- “Lower supply won't help with network demand this poor,” – ByteTree’s Charlie Morris
Bitcoin Cash halving is here! At block height 630000, the halving occurred and the block reward has now fallen to 6.25 BCH from 12.5 BCH. The Blockhash 00000000000000000169a496bfafa84ad8d3ef8039fc9e391a8eada67996b9c8 was mined by AntPool.
The last few blocks on the network just before the halving took 30 to 35 minutes to be mined than the usual 10 minutes.
In anticipation of its reward halving, Bitcoin (BTC) fork Bitcoin Cash (BCH) has been flexing today. Currently, it is up 5% while trading at $265.8. In the past week, the 5th largest cryptocurrency by market cap surged over 27% and is in greens by 33% YTD.
Bitcoin forks pumping into their halvings because I'm not sure why. pic.twitter.com/iLXinv2kvp
— Ceteris Paribus (@ceterispar1bus) April 8, 2020
Bitcoin Cash's halving, that occurs every 210,000 blocks or four years, came over a month before Bitcoin's because of its initial problem with its difficulty adjustment algorithm in 2017.
As we recently reported, Bitcoin Cash shares the same SHA-256 mining algorithm as Bitcoin and Bitcoin SV (BSV) which means, miners can seamlessly redirect their hash power to the asset that is more profitable to them.
Because Bitcoin will still have 12.5 BTC rewards for a month longer, when Bitcoin Cash today and Bitcoin SV tomorrow halve their rewards, this should force miners to direct more hash power to bitcoin which already accounts for nearly 95% of it.
“Lower supply won't help with poor network demand”
While the hash rate of Bitcoin has been on a continuous surge reaching to its all-time high at 110 Th/s last month, except for a few setbacks, Bitcoin Cash’s hasn’t been seeing much traction. BCH’s hash rate has fallen 32% since the mid-February high of 5 Th/s.
This dropping hash rate combined with low demand won’t work on digital currency’s favor.
“ByteTree puts the market health score at 2 out of 6, which would indicate weakness. The network has dropped off a cliff in recent weeks. Lower supply won't help with network demand this poor,” said Charlie Morris of crypto data tracker ByteTree.
Besides hash power, miner-led selling pressure for all three of the cryptocurrencies is expected to increase which is already high.
For now, crypto data tracker Coin Metric expects miners to follow a “cycle of decreased profit margins, increased selling, capitulation, and a culling of the least efficient miners from the network.” But once this cycle is complete, miners would return to a healthier state supportive of future price increases.
Over 32% BCH Never Moved
Now, when it comes to the circulating supply, a whopping 6 million BCH have never moved since its fork in August 2017. Out of the 18.4 million BCH in circulation, 32.6% of existing supply is either lost or being held for the long term.
In comparison, only 2.3 million BTC, 12.5% of the 18.4 million BTC in circulation haven't moved in five years.
Now as the digital asset prepares for its hard fork, BCH price has risen and 85% of its addresses are at a profit in comparison to just 56% of Bitcoin and 97% of Bitcoin SV.
Bitcoin SV, whose halving is on April 9, a day after Bitcoin Cash’s is the best performing asset in the top 40 cryptocurrencies with YTD gains of 130%.