The Bitcoin Cash Network shows a considerable drop in its hash rate after halving occurred. As reported a few days ago, the capitulations of BCH miners who migrated massively to Bitcoin have been increasing.
The first market capitalization crypto-currency offers superior profitability to former Bitcoin Cash miners. This will be the case for at least one month, too, before BTC see a halving.
Halving of Bitcoin Cash occurred when BCH had reached 630,000 blocks. Because of the BCH halving the rewards for mining were reduced from 12.5 BCH to 6.25 BCH. The daily miner’s reward for BCH miners fell from $471,600 to $235,800 according to Messari data, as shown in the graph below.
Significant Drop in Bitcoin Cash Hash Rate by c.60%
Additionally, data from fork.lol shows a drop in the Bitcoin Cash hash rate of over 60 percent since the halving, as can be seen in the graph below. Yesterday, April 8, at the time of publication, the BCH hash rate reached 4.36 EH / s before halving and was steadily down to 1.21 EH / s. Other platforms record various metrics but the BCH hash rate is shown as negative on all of them. Bitcoin.com was the only exception, which shows an increase in the hash rate to 3.5 EH/s.
Messari says the trend could continue until Bitcoin reaches its halving:
“While it’s temporarily less profitable to mine on BCH, we could see SHA-256 miners to switch over to BTC in the weeks before its halving.”
The statements in the crypto-community were more critical. Founder of Adamant Capital Tuur Demeester said Bitcoin Cash “should admit its failure” Demeester said BCH has been “centralized completely since 2019,” noting its lack of users and its decline from BTC, which it placed at 96 percent.
Meanwhile, Fernando de la Torre, vice-president of Poolin, said a BTC miner can collect 1.41 times the reward of the US dollar as a BCH miner. De la Torre was among those who questioned the involvement of BCH miners, even saying that there is a group of miners who are willing to keep the BCH network active regardless of the cost or profit they receive. This is in line with the statements made by Demeester, which highlighted the centralisation of the BCH network.