We all know that Bitcoin Cash Halving recently started. We also talked about some possible drawbacks, for example the massive capitulation of miners, which has assigned the hash power to Bitcoin. Given this, Adamant Capital founder Tuur Demeester says it is time to admit defeat.
What happened after Halving?
With almost a month to go before Bitcoin Halving, we have seen some interesting moves in cryptocurrency mining. One of these is that both Bitcoin Cash and BSV have lost hash power, and this has targeted the leading cryptocurrency.
According to a tweet from Arthur van Pelt of Dragon Industries, the Bitcoin Dot Com mining group lost nearly 90% of its miners. Furthermore, it showed that Bitcoin currently claims 93.8% of the hash power. Additionally, Bitcoin Cash only had 1.5% of the total hash power.
This is influenced by the Halving of the verified block reward. The considerable difference in this hash rate destined for BCH is that a few days ago it was more, by the miners who competed for the last blocks with the reward of 12.5.
At the time of writing, Bitcoin Cash is at $ 237.58, representing a loss of -9.31% of its value 24 hours ago.
Meanwhile, today the BSV Halving has arrived. This cryptocurrency is at 191.07 USD, which represents a loss of 11.77% compared to the price of 24 hours ago. As with Bitcoin Cash, this happened despite the fact that it was on a bull rally in the days leading up to the event.
Tuur Demeester: “BCH must admit defeat”
Demeester is the founder of Adamant Capital, a Bitcoin advocate, investor, and analyst. So his opinion on Bitcoin Cash is discouraging for many.
First, he said it is time to assume that BCH was defeated. At this moment it hardly has users, and its hashrate has decreased by 96% compared to BTC, among other problems. Among other things he said that “Friends don’t let friends buy Bitcoin Cash“
To corroborate that there is almost no economic activity with Bitcoin Cash, Demeester recommended visiting the TX Highway Cash transaction viewer.
In this one a kind of comparison is made between BTC and BCH as if they were both on roads. The passing cars represent the value and amounts of the transactions made using each cryptocurrency. The fastest and most constant are those of Bitcoin, while occasionally a small one happens with Bitcoin Cash.
What happened to the miners?
In a nutshell, after BCH’s Halving the miners immediately switched their focus to BTC for higher profits while still possible.
Alejandro de la Torre, vice president of Poolin, released his opinion on the events. Poolin is one of the largest cryptocurrency mining groups.
De La Torre explained that Bitcoin Cash miners share the same algorithm. Therefore, the same mining platforms as Bitcoin and Bitcoin SV.
Bitcoin Cash Halving has represented a decrease in the hashrate destined for this cryptocurrency. In return, there is an increase in Bitcoin’s hashrate. Why? Well simply because it is more profitable.
Next, De la Torre added that there may be some group of miners who want to keep the Bitcoin Cash network working, and that is why they continue to extract it even when it is not profitable compared to Bitcoin.
Others believe that it is a centralized group that keeps the BCH alive. This is worrying if we consider that in theory what is unique about cryptocurrencies is that they should be decentralized.
In any case, we cannot deny that the following weeks will be interesting to analyze what happens with the Halving of these cryptocurrencies. So do you think it is time for Bitcoin Cash to throw in the towel and miners to mine Bitcoin?