Bitcoin Cash was born out of a Bitcoin fork in 2017. Throughout this time it has remained a leading cryptocurrency thanks to its market capitalization. Today she is in big trouble, after an imminent drop in her Hash rate after her 1st Halving.
Miners exit from the Bitcoin Cash network
On April 8, the Bitcoin Cash code activated the Halving protocol, halving the reward and coin mining per resolved block. This immediately caused an unfavorable situation for those who keep the chain alive, the miners.
Despite the fact that the price had been increasing progressively, increasing by almost 100%. The arrival of the event was not taken with much positivity, indicating that the miners were losing interest in the BCH Blockchain.
Immediately after block 630,000 was reached, where Halving occurred, there was a 109-minute gap between blocks, a time 10 times greater than normal, which led to the transactions being stopped during said period of time.
The data indicates that there was an imminent exit of miners from the BCH network, causing its hash rate to drop to historic lows, which means a drastic decrease in network security.
According to CoinWarz data, the Bitcoin Cash hash rate dropped from 4 E / s to less than 1 EH / s just 1 day after Halving.
Roger Ver eliminates much of the Bitcoin Cash Hash rate
Roger Ver is the main figurehead of BCH, supporting the project from its inception. Despite this, he has taken 92% of his mining power from the chain he defends, after halving the reward.
The current BCH price generates losses for those who practice mining on their Blockchain. This has generated a fairly negative chain reaction for the project.
Some sources indicate that the BCH hash rate may have dropped further, had it not been for the computing power that is working at a loss to keep the network secure.
Bitcoin Cash behavior after its Halving and Hash Rate drop
Currently, Bitcoin Cash is exchanged for USD 232.8, and with a very high probability of continuing to fall in the coming days.
Immediately after Halving, the BCH price did not show as much of a bullish intention as some expected, and even fell slightly.
From a technical point of view, the chart shows good signs that the price is quite determined to look for new supports; meanwhile, fundamental analysis supports this sentiment.