In less than 10 hours Bitcoin Cash cryptocurrency will go through the block reward reduction event. Similar to Bitcoin, the number of cryptocurrencies mined will decrease from 12.5 to 6.25 per block. Inflation will therefore fall from 3.64% to 1.8%.
Currently, there are 18.37 million Bitcoin Cash in circulation. This represents 87.49% of the total number of cryptocurrencies available (21 million).
From the price perspective, the maximum value reached by BCH this year is $ 500. Currently, cryptocurrency is trading at around $ 250.
Reducing block rewards generally generates periods of price growth. For Bitcoin Cash, however, no such evolution has been recorded. In addition, the fundamentals of the network are quite bleak, as miners preferred to switch to Bitcoin mining.
The hash rate of the Bitcoin Cash network
The hash rate of the Bitcoin Cash network is currently down 34% from the 2020 peak and 60% from the historical maximum. With a current hash rate of 3.27 EH / s, the BCH network is quite vulnerable. As the block reward is reduced, the situation may worsen.
Given the additional pressure exerted by the COVID-19 pandemic, it is difficult to predict the evolution of Bitcoin Cash after halving. Some analysts have pointed out that the impact of halving on BCH cannot be a predictive model for Bitcoin.
Unlike BCH, the hash rate of the Bitcoin network has started to increase again over the past two weeks. Also, the Bitcoin price started to recover, exceeding the $ 7,000 threshold. Bitcoin trading will take place in about six weeks.
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