Bitcoin Cash (BCH), the altcoin that emerged from the split with Bitcoin in 2017, experienced its second halving event a few hours ago. This pre-programmed mechanism halves the number of coins BCH miners receive as rewards for validating transactions on the network. As with the first halving in 2020, the event sparked debate about the future course of Bitcoin Cash. Here are the details…
How did the halving of altcoin BCH affect the price?
Prior to the halving, there was a significant increase in the price of BCH, with a significant increase of 32% in just 30 days. However, it was not so smooth after the halving. The price dropped by 3% in the 24 hours after the halving. According to some, this reflects the uncertainty of investors. This volatility also affected BCH’s market cap and daily trading volume.
This price fluctuation can be partially attributed to miners adjusting to lower rewards. The network’s hashrate, a measure of computing power dedicated to mining, experienced a significant increase before the halving, exceeding 8 exahashes per second (EH/s). After the incident, the hashrate remained stable around 3.78 EH/s. So this suggests that some miners may have switched to Bitcoin mining, which now offers higher rewards per block.
What will happen in the future?
Bitcoin Cash isn’t relying solely on the halving to secure its future. A significant update is planned for mid-May. This upgrade proposes a block size limit to adjust the block size according to recent transaction volumes. This aims to increase efficiency, reduce transaction costs. It also aims to make the network less vulnerable to spam attacks.
The market’s reaction to these developments, especially the effectiveness of the update, is eagerly awaited. It will be particularly vital in determining the short- and long-term trajectory of BCH. cryptokoin.com As we reported, it is worth noting that Bitcoin, the source of Bitcoin Cash, is also approaching its halving event in April 2024. It remains to be seen how these two halving events and related network upgrades will play out.
Questions about halving and Bitcoin Cash
Despite the planned upgrade, some uncertainty remains. Recent price declines and liquidations, primarily affecting long positions, are critical. Because it shows that some investors may adopt a wait-and-see approach. Additionally, the migration of some miners to Bitcoin raises questions about the long-term sustainability of Bitcoin Cash’s hashrate, a vital factor in network security.
As a result, Bitcoin Cash’s second halving marks an important turning point for the network. While the immediate price impact is mixed, the upcoming upgrade is attracting attention in the cryptocurrency landscape. Additionally, ongoing competition presents both challenges and opportunities. It remains to be seen whether Bitcoin Cash will be able to take advantage of its unique features and establish itself as a viable alternative in the ever-evolving cryptocurrency market.
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