Bitcoin Cash Miners Lost Half Of Their Rewards

Bitcoin Cash (BCH) is the fifth largest crypto asset on the market cap now. As we can see from the latest crypto news, the Bitcoin Cash miners just went through the first halving of the coin, seeing the mining reward cut by half, to BTC 6.25 ($1,672 in USD) per block. This reduces the supply of new coins entering circulation right now.

Congratulations to @AntPoolofficial for finding the block

— BitMEX Research (@BitMEXResearch) April 8, 2020

As reported before, this is the first of the three major Bitcoins to go through this event. The next one is its fork Bitcoin SV (BSV) on April 10, and then Bitcoin (BTC) in May – which is in approximately 34 days from now. That said, some analysts believe that miners will switch from BCH and BSV in this month until BTC’s halving – trying to compensate their lost revenues. A tweet by BitMEX Research visualized the movements clearly.

Finally a block is produced

— BitMEX Research (@BitMEXResearch) April 8, 2020

Even though the next BCH halving will happen in 2024 mainly “due to initial problems with the Bitcoin Cash difficulty adjustment algorithm in 2017, it got here a few weeks before BTC.” This is what BitMEX Research explained.

According to the crypto analysis firm Arcane Research, in order to avoid slow block discovers because of a lower hash rate, a difficulty adjustment algorithm was included in the BCH fork. This way, Bitcoin Cash miners will have more difficulty adjustment than BTC.

Because of all this, some days had one block generated per hour and others one block generated per minute. This, as the post said, “allowed miners to inflate the BCH supply much faster than what was intended in bitcoin, by accelerating the generation of new blocks,” and also proved that “this acceleration is the reason behind the early halving of BCH and BSV.”

As Bitcoin Cash miners and BCH supporters are celebrating the event online, some think that this will mean “nothing but business as usual” with the “hashoverall” adding that what the halving will lead to is “lower mining reward – lower hashpower – lower security – lower price.”

So, it is expected that the Bitcoin Cash news soon show some declines. However, in the long term, the price is definitely going to shoot above – especially when miners come back when the price starts appreciating in the long term.