Ready for the impending Halving of Bitcoin Cash (BCH)? This is one of the most important events in this year 2020. For this reason we seek to answer various questions that have arisen on the subject. Will the price of the entire crypto market rise or fall? It’s time to read this post, before it’s too late.
Let’s learn about Bitcoin Cash
As is well known, Bitcoin Cash (BCH) was created as a Bitcoin Hard Fork in 2017. For this reason, the crypto that ranks 5th in the crypto market today shares many of the characteristics of BTC. One of them, and also one of the most characteristic, the Halving.
But, one of the news that not many know, is that this will be the first Bitcoin Cash Halving since its creation.
This is nothing more than halving the rewards that crypto miners receive for their vital work of validating transactions. Since, like Bitcoin, it shares the PoW validation method.
This is a mainly anti-inflationary feature, which helps BCH and BTC not present the same problems that fiat money has presented for many years.
BCH’s impending Halving
This event will be the first of the 3 Halving of the Bitcoin surname family to take place this year. The other two being those of Bitcoin SV (BSV) and Bitcoin (BTC).
This will take place on April 7 at exactly the following times.
- Venezuela 🇻🇪 and Chile 🇨🇱 10:25 am.
- Argentina 🇦🇷 11:25 am.
- Colombia 🇨🇴, Ecuador 🇪🇨 and Peru 🇵🇪 9:25 am.
- Spain 🇪🇸 4:25 pm.
- United States 🇺🇸 (East) 10:25 am and West 7:25 am.
The Halving of Bitcoin Cash will take place in block number 630,000. And it will reduce the reward for mining each block from 12.5 BCH ($ 3,137) to 6.25 BCH ($ 1,568). As we see, exactly half.
The approximate mining time for each block is currently 10 minutes.
Possible security issues
Unfortunately, BCH doesn’t have the depth of the ecosystem that Bitcoin has. This means that not many miners endorse its hard fork.
One of the most unpleasant consequences of this is the fact that Bitcoin Cash does not possess much computing power, therefore it has suffered 51% attacks in the past.
And this type of historical event, like the imminent Halving of Bitcoin Cash arouses fears of demons from the past. Because the main affected of all this are the weakest link in the network.
BSV developer Brad Jasper said that in the short term the Halving is a poor outlook for the price of the small altcoins that broke off from Bitcoin.
Because both BCH and BSV come from Bitcoin, it doesn’t cost crypto miners as much to migrate from one crypto to another.
“The main source of income for miners is block rewards. Halving in these altcoins will cause a migration to greener pastures, and more lucrative Blockchain. ”
The miners have already started to migrate
If you can be paid more for your own work, would you go or stay? This is the tirade many miners are in right now, just a few hours from Bitcoin Cash Halving.
Although some crypto analysts estimate that this Halving may not greatly affect the price of BCH. But definitely, many of them have come to the same prediction. “The main affected will be the hashrate, since many miners have begun their migration to BTC, before it also lives its Halving in a month and a half”
Cryptocurrency market analysis firm Coin Metrics recently said that:
“Both the Bitcoin Cash halving and the Bitcoin SV halving will increase the selling pressure on these altcoins, as the miners of these two will get rid of their tokens in order to mine Bitcoin.”
There is a real risk that the hash rate will be halved temporarily on the BSV and BCH Blockchain. At least, until BTC presents its own Halving.
There are many internal problems
It is impossible what the future of Bitcoin Cash will be from tomorrow. But the signs over the past few months have not been very pleasant.
Within his team of developers, he follows a dispute over a possible desarrollador developer tax ’that could increase the longer-term economic impact of halving.
Additionally, there were reports that Bitcoin.com, led by Bitcoin Cash supporter Roger Ver, laid off half of its workforce.