09 April, 2020 | AtoZ Markets – The world's fifth-largest crypto network in terms of market capitalization reached 630,000 blocks at Wednesday triggering the so-called "halving" event. It reduced the network's mining reward by 12.5 bitcoin cash (BCH) per block at 6.25. Miners competing for block rewards on the network will see their immediate mining revenues cut in half. It results in little or no return on investment, despite investments in expensive mining equipment.
The mining difficulty and hash rate on bitcoin cash measure the participation of miners in the network. It has recently followed a downward trend with the prospect of halving, from around five exahashes per second (EH/s) in mid-February to 1.45 EH/s currently.
Fork.lol shows a 60% drop in the BCH hash rate, which went from 4.36 EH/s yesterday (using a 12-hour average). Coinwarz shows it dropped from 3.9944 EH/s to 1.3057 EH/s, while the chart from Bitcoin.com shows a slight increase in the rate to 3.5 EH/s.
In the world of crypto, many people have quickly noticed a gap between the blocks. The BitMEX research team noted that the time between blocks 630,000 and 630,001 was around two hours. It usually only takes ten minutes to generate a BCH block. Fifty-three blocks have been extracted in the past 15 hours, the time between generation returning to 10-20 minutes.
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Bitcoin Cash Price After the Halving
The price of BCH fell from $ 490 in mid-February to only $ 160 in mid-March. But it has rebounded to more than $ 250. As of press time, BCH changes hands at $ 260. The price of BCH increased by more than 18% throughout the week but dropped 3% in the past 24 hours.
Although some focus only on the price, many worry about what exactly will happen to the hash rate. Some BCH miners can abandon the coin to get better profits by exploiting BTC. But Bitcoin Cash miners have proven in the past that they are willing to lose significant capital to keep the price going up. They did it in the "hash war " of 2018.
According to a report, the next halving of Bitcoin cash will take place in 2024. The halving of bitcoins is expected to take place around the middle of next month.
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