Is it the end for BCH?

The time has come: Bitcoin Cash (BCH) is just before its first halving. From a block height of 630,000 miners with 6.25 BCH only receive half the amount of BCH as a reward for a “mined” block. This curtailment of the BCH offer makes Bitcoin Cash in theory a rarer commodity, which could promote the BCH rate if the demand for Adam Ries remains or grows.

 

Bitcoin cash halving with a head start

Adam Ries did not take one thing into account in his calculation: that the Bitcoin Cash Halving will occur a whole month before the Bitcoin Halving. This is a relic from the early days of Bitcoin Cash. When BCH split off from BTC, a new algorithm to adjust the mining difficulty was used. In the meantime, this ensured that Bitcoin cash blocks were mined faster than Bitcoin blocks. This lead in time could, however, doom Bitcoin Cash.

 

Possible danger from miner exodus

Since both use the same mining algorithm, bicoin cash halving could encourage miners to migrate. Mass migration of miners would in turn make the Bitcoin cash network vulnerable to attack; a lower hashrate in the network makes a 51 percent attack on Bitcoin Cash cheaper and therefore more likely. This is exactly the scenario that the blockchain data aggregator Longhash painted almost exactly a year ago. Even before halving, it would be possible to attack the Bitcoin cash blockchain with a fraction of Bitcoin’s computing power. According to Longhash, if the miners in the Halving increasingly dig BTC instead of BCH, it could be tight for Bitcoin Cash.