A bitcoin cash halving occurred last Wednesday, and many are waiting with bated breath to see what happens.
Bitcoin Cash Has Undergone a Halving
In the past, big events surrounding bitcoin cash have not always fared well for big daddy bitcoin. The asset dropped heavily nearly two years ago when bitcoin cash forked in late 2018, which led to the creation of an entirely new cryptocurrency known as bitcoin SV and a boatload of controversy to boot.
The asset – widely considered the brainchild of Australian bitcoin developer Craig Wright – ultimately led to a major war of sorts within the industry, pitting several experts – i.e. “Bitcoin Jesus” Roger Ver and Craig Wright – against each other. Ver argued that everything bitcoin stood for was now represented by bitcoin cash, while Wright, naturally, argued in favor of his own creation.
This caused heavy instability, and as a result – bitcoin the world’s number cryptocurrency by market cap – fell into the mid-$3,000 range after it had spent much of the summer trading in the low to mid-$6,000 range. This price drop lasted for five months until April of 2019, when the asset decided it was time to jump back to $5,000.
From there, it continued its plan of growth through the summer but ultimately came to a halt at the end of the year, ending 2019 at a measly $7,300 (around where it is now).
Thus far, this week’s bitcoin cash halving doesn’t appear to have had any serious repercussions, and the bitcoin price is remaining stable. Then again, it’s probably too early to tell. Things didn’t drop suddenly in 2018. A few weeks went by before the horror showed its face. Thus, crypto traders have good reason to be on edge and are anticipating what will happen next.
Bitcoin cash isn’t alone in its present halving schedule. Bitcoin SV – a relatively new derivative – is slated to undergo a halving of its own sometime before May. This will be a pivotal time for the world’s number one digital asset, as bitcoin itself is set to undergo its first halving in a few years.
What Will Happen Now?
The currency has been suffering heavily as of late thanks to the widespread panic caused by the coronavirus. The asset’s price dropped from the $10,000 range in February to under $4,000 in mid-March, though at press time, bitcoin has managed to recover somewhat and has added about $3,500 to its overall value. Still, there’s a lot of work to be done, and miners have already witnessed their rewards drop significantly over the past few weeks alone thanks to the price hurdles.
With May set to bring about another reward reduction, will bitcoin’s mining sector take a massive hit? People are keeping their fingers crossed and hoping the answer is “no.”