This April 8, an event occurred that many have considered the prelude to the May Bitcoin Halving: Bitcoin Cash Halving. However, if in general the prospects of the effects that Halving will have on BTC are positive, in the case of BCH they are not so positive, compared to the collapse in its mining. Which led CoinCorner developer Zakk Lakin to say in our Tweet of the day, that “Bitcoin there is only one”:
Is there only one Bitcoin?
The world of cryptocurrencies is tough, and that’s learning the hard way by Bitcoin Cash. Well, after the Halving lived on your Blockchain this Wednesday, the effects of it on cryptocurrency mining are being catastrophic.
And it is that, the enormous dependence of the price of BCH with respect to BTC, prevents the price of this cryptocurrency from experiencing a rise in its price, compared to the decrease in the rate of issuance of its tokens.
Therefore, the decrease in the reward in Bitcoin Cash mining, without a variation in its price to compensate it, has led to a radical drop in the profitability of mining this currency.
Naturally, in this situation we have seen a veritable stampede of miners outside the BCH network. Which led to a more than 90% drop in the mining power of the Blockchain.
This caused even major BCH advocates like Roger Ver, CEO of Bitcoin.com, to shut down the machines after Halving. As Zakk commented on his Twitter account:
“Even the Bitcoin Cash‘ CEO ’has stopped mining it since it was halved. -92.19% decrease in the last 24 hours #shitcoin. #Bitcoin there is only one ”.
Although, due to its importance and independence, BTC is expected to have a different reaction to its Halving. Increasing its price in the short term, and therefore compensating miners for the decrease in their rewards.
BCH’s Halving has not set a good precedent for what may happen in the crypto world in May.