- Bitcoin Cash’s halving event reduces miner rewards by half, aiming to control inflation and increase cryptocurrency scarcity.
- Previous BCH halving in 2020 led to an immediate price drop, showcasing the market’s reaction to reduced miner incentives.
Bitcoin Cash (BCH), like its predecessors Bitcoin (BTC) and Litecoin (LTC), undergoes a halving event every four years, or after 210,000 blocks have been added to its blockchain. This halving slashes the miners’ rewards by half, a pivotal moment in the cryptocurrency’s economy designed to control inflation and enhance scarcity.
The BCH blockchain recorded its inaugural halving in April 2020, an event that followed the addition of 630,000 blocks. The forthcoming halving is scheduled for 2024 when the blockchain hits 840,000 blocks. Given Bitcoin Cash’s predictable supply schedule, it’s feasible to forecast the creation rate of BCH accurately for any given day, month, or year.
Originating from a 2017 hard fork from Bitcoin, Bitcoin Cash inherited many of Bitcoin’s traits, including its halving schedule. Presently, BCH miners are rewarded with 6.25 BCH per block, a figure set to halve to 3.125 BCH in the next halving.
The halving event typically leads to increased discussions about cryptocurrency scarcity, potentially pushing the price upwards if demand remains constant. However, the crypto market is relatively nascent, with limited historical data to predict future movements accurately, especially for a relatively new entity like BCH, which has only experienced one halving.
Historically, the lone BCH halving in April 2020 led to an immediate price drop, attributed to the “buy the rumor, sell the news” strategy employed by traders. Approximately six weeks post-halving, BCH’s value decreased by 14%, maintaining that price level for about six months.
Looking Ahead
As the 2024 halving approaches, investors and market analysts closely watch for signs of how reduced miner rewards might affect BCH’s value and its mining community’s sustainability. Given the precedent set by the previous halving, the BCH community remains cautiously optimistic, aware of the potential for short-term volatility but hopeful for long-term gains.
Bitcoin Cash (BCH-USD) is currently priced at $402.05, experiencing a decrease of 1.50% as of the latest update. The cryptocurrency has had a fluctuating journey, with its price moving within a day’s range of $371.08 to $402.05. Over the past 52 weeks, Bitcoin Cash has through a broader price range from $95.78 to $525.25.
