Bitcoin Cash Halving Could Destroy The BCH Network: Kraken’s Dan Held

The Bitcoin Cash halving event arrives in about 160 days which is a slightly shorter term than Bitcoin’s date and Dan Held from Kraken expects this halving to destroy the BCH network. In the Bitcoin Cash news below we read to find out more.

While the Bitcoin Cash halving is usually seen as a favorable period for the price, in this case, the prediction is that the halving will only bring a disaster. So far, the BCH network has no historical record of going through halving so the price action may not even occur. Dan Held, the Director of Business Development at Kraken, commented on the halving using the ‘bcash’ moniker.

As it can be seen from the earlier halving schedule, the Bitcoin Cash network has seen some periods of ‘strip-mining’ where the Bitcoin miners switched to the network and took the rewards with greater ease. A similar thing can happen after this halving in case the usual miners for Bitcoin Cash give up on the network. The low block rewards and the mining will be easier to grab for the owners of the SHA-256 ASIC miners and can even compensate for the lowered BTC rewards.

Litecoin is also one of the coins that learned the lesson. The coin was hyped slightly before the event and even achieved a significant rally to $140. Around a month before the event however, the price started dropping and dropped to $50. What is even more interesting, the miners fled the network and the hashrate of the cryptocurrency dropped to 200 TH/s. investing in the machines with the lowered block reward was not attractive to the miners to the network is now much less secure than before the halving.

In the case of Litecoin, there are not too many L3 owners that are willing to take over the network. With Bitcoin Cash, it is possible that a fraction of the Bitcoin mining power could switch to Bitcoin Cash and perform a 51 percent attack. With 2.6 quintillion hashes per second and with Bitmain being the major supporter, the BCH network is attackable. If the halving disperses the miners, the danger will be even bigger.