Bitcoin Cash just completed its first-ever block reward halving since forking away from Bitcoin (BTC) back in 2017. However, early signs since the halving show that the network may be in trouble in the coming days as mining speed drops to record levels. Could this offer a glimpse into BTC’s upcoming May halving and the impacts it may cause to the top crypto?
Bitcoin Cash (BCH) successfully competes halving
According to the Bitcoincashhalf.com, an aggregator that keeps track of the halving of BCH signaled the successful completion of the block reward halving once block 630,000 was mined. The total mining revenue per block mined dropped from 12.5 BCH (~$3,287 at current prices) to 6.25 BCH ($1,644).
The halving saw the coin touch its highest price point in almost a month as BCH climbed past the $270 mark. While a number of analysts imagine the lower supply rate would be a catalyst to push the prices higher, BCH/USD has remained quite the same since the halving. The stagnation in price raised several questions on the overall effect of the halving on BCH.
Zach Resnick, the managing partner at Unbound Capital, said the current lack of real impact from the BCH halving on price may be as a result of a number of miners shutting down given the tough economic times across the globe due to Corona Virus. He said,
“Given the current market conditions, this bullish speculative frenzy coming to counteract the halving doesn’t seem likely this time around. Thus, miner revenue will truly halve, leading to many miners becoming unprofitable and shutting down.”
Is BCH mining sustainable?
It seems the miners of BCH have already started packing their miners or focusing them on mining other cryptocurrencies as seen by the current speed of blocks mining.