Effect of Halving event on Bitcoin Cash on Miner Profitability

Effect of Halving event on Bitcoin Cash on Miner Profitability

According to the principle of Bitcoin halving has just abated its block rewards by half leading many miners to see gross margins drop to near zero. Very recently, the world’s fifth cryptocurrency network reached block height 630,000 and bitcoin halving that reduced the network’s mining reward from 12.5 bitcoin cash (BCH) per block to 6.25. Miners will soon have their mining revenue reduced by half resulting in slight or no return. The mining difficulty and hash rate on bitcoin cash is also on downward trend in front of the halving.

The BCH price has seen a decline from $492 to as low as $165 and then again bounced back over $250. So this changing flow of BCH refers to an unknown destination indeed. Based on recent the price of BCH and latest hash rate of network it is seen that a number of mining equipment that was launched in 2018 and early 2019 are now generating negative daily profits.

Most hit equipments are also seeing gross margin drop to around 10 percent. But only some would be able to generate a margin above 30 percent.

The mining review will increase for those who can afford to stick to the game providing that as more unprofitable miners unplug from the Bitcoin cash network. But devices which base on the SHA-256 have the capability of shifting between different networks that also use the similar algorithms.

Bitcoin halving is going to be held within one and half month. According to market capitalization, Bitcoin is larger than BCH by 26 times. Bitcoin SV, also formarly known as (BCHSV) is a hard fork of the Bitcoin Cash cryptocurrency network, will also sustain a block reward reduction in about a day as per scheme. Afterward, the halving shortened by some percent, a 5 percent uptick has been seen in the computing power of bitcoin which is currently at 105 EH/s.

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