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Halving Bitcoin Cash Will Lead …

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Halving Bitcoin Cash Will Lead ...

Bitcoin Cash halving will lead to increased volatility and outflow of miners
CONTENT

  • BCH volatility after halving will increase significantly

  • Miners refuse to mine VSN

  • Bitcoin cash price is unlikely to rise after halving

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First halving Bitcoin halving cuts the number of new coins created and earned by miners in half. It happens about every four years and … More Bitcoin Cash doesn’t bode well for cryptocurrency. Experts predict an increase in volatility and a massive outflow of miners, who are no longer profitable to mine coins for a reduced reward. What will happen to BCH after halving, BeInCrypto asked experts.

Halving Bitcoin Cash Will Lead ...

On Wednesday, April 8, Bitcoin Cash, which emerged after the traditional bitcoin hard fork, experiences its first halving. To say for sure how the course of the cryptocurrency will change and whether it will become more popular among the community is still difficult enough. After all, before the VSN did not conduct halving and there are no sufficient grounds for certain conclusions. But experts agree on one opinion: the coin will become more volatile, a reduction in the reward for a mined block will cause an outflow of miners, and holders are unlikely to receive much benefit from halving..

BCH volatility will grow

 

The halving situation is controversial, especially for Bitcoin Cash. So, after the halving of the first cryptocurrency, there was a high volatility of the coin for quite a long time, including a significant increase in 2017 (which can be compared with the consequences of the events of 2016). This is the opinion of Sergey Zhdanov, CEO of the EXMO exchange. As he explained in an exclusive comment for BeInCrypto, Bitcoin Cash is a fork of Bitcoin, and for the coin it will be the debut halving, which is difficult to predict an unambiguous outcome, since there is no historical data..

We can only rely on the scenarios of other currencies that have passed a similar path, such as Bitcoin and Litcoin. The scenario of the latter, for example, was very interesting: before the halving in 2019, an artificial rush of value was created, but after the coin price fell sharply. Now you should definitely pay attention to the fact that in the near future the coin will have a period of volatility. We will be able to assess the further development of events after the fact, – said Sergey Zhdanov.

Halving Bitcoin Cash Will Lead ...

Andrey Tonkolitko, the head of the Crypto Art cryptocurrency fund, agrees with his opinion. According to the expert, the volatility of the coin will only increase after the halving. Investors just don’t know what to expect from the coin after cutting the reward in half.

As for the holders, they will not receive much benefit from the halving. Most exchanges today offer their clients BCH futures contracts. In fact, in order to become the owner of a crypto coin, it is not necessary to have it in stock. It is enough to purchase a futures contract, there are millions of them on the market today.

Therefore, there is no reason to say that the price of BCH after halving will increase sharply. The cryptocurrency market has just begun to recover from the fall, and it is not a fact that Bitcoin Cash will be able to compete with other more successful coins.

Mining will become unprofitable

 

As Andrey Tonkolitko noted in an exclusive comment for BeInCrypto, after the halving, the reward for one mined coin will be halved, similar to Bitcoin. That is, now the payout to miners will be $ 6.25 instead of $ 12.5. Such a price reduction with a low cost of a coin and a high price for electricity makes VSN mining unprofitable.

There are already negative sentiments in the community about the disadvantages of mining. An outflow of miners is expected and their transition to pools for the extraction of traditional bitcoin, which is more profitable from an economic point of view, – commented Andrey Tonkolitko.

The high cost of mining equipment and increased electricity tariffs do not contribute to the development of mining VSN, and after the reduction in rewards, there is no sense in mining coins.

Halving Bitcoin Cash Will Lead ...

It is too early to make definite conclusions about the future behavior of Bitcoin Cash. However, coin holders need to be prepared for the fact that BCH will be at the peak of its volatility in the next few months..

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