Today, over a month before Bitcoin, its fork Bitcoin cash (BCH) had its halving at block height 630,000 that resulted in its block reward being cut down in half from 12.5 BCH to 6.25 coins.
Just before the halving, the last few blocks on the network took over half an hour to be mined than the usual 10 minutes. Also, it was two hours after the halving that a new block was mined.
This delay led the crypto community to wonder if there was any variance or as Alistaire Milne said, “did all their miners switch to something profitable? Like, you know, the real Bitcoin.”
Bitcoin fork Bitcoin Cash (BCH) price started rising before the halving even occurred in anticipation of the event. Currently, it is up about 5% while trading at $268.
In the past week, the 5th largest cryptocurrency by market cap surged more than 27% and has been enjoying greens of 33% on year-to-date-basis as well.
Interestingly, BSV which has its halving tomorrow is surging the hardest, up 15% at $217. Meanwhile, Bitcoin is trading just above $7,300, down 0.44%.
Today’s gains also have 84.79% of the address “in The Money” meaning if these were to sell their position today, they would realize a profit, as per IntoTheBlock, compared to Bitcoin’s 56% and BSV’s 97%.
Also, 6 million of BCH’s circulating supply has never been moved since its fork in August 2017. This means either this 32.6% of existing supply is lost or being held for the long term.
Bitcoin, in comparison, only has its 2.3 million, 12.5% of the circulating supply not moved in five years.
When it comes to the hash power, as we reported, BTC, BCH, and BSV share the same SHA-256 mining algorithm making it easy for miners to seamlessly redirect hash power to the profitable digital asset.
Today, Bitcoin Cash’s block reward is cut down in half and Bitcoin SV’s will be tomorrow but Bitcoin’s will remain 12.5 BTC for over a month still. This is expected to force miners to direct more hash power to the world’s leading digital asset which already accounts for about 95%.
Bitcoin Cash’s hash rate has actually fallen 32% from the mid-February high of 5 Th/s compared to Bitcoin’s all-time high of 110 Th/s last month which has started to rise yet again after having a setback after the recent sell-off.
“ByteTree puts the market health score at 2 out of 6, which would indicate weakness. Network has dropped off a cliff in recent weeks. Lower supply won’t help with network demand this poor,” said Charlie Morris of crypto data tracker ByteTree.
As we reported, these halvings will further put miner-led selling pressure on all three of the cryptocurrencies. Miners are expected to follow a “cycle of decreased profit margins, increased selling, capitulation, and a culling of the least efficient miners from the network.” But once the cycle is completed, miners would get back to a healthier state.