The Director of Business Development at the Kraken exchange, Dan Hedl, warns that the upcoming Bitcoin Cash halvening may turn into a catastrophe, causing a 51% attack to happen on the network.
Hedl talked about the upcoming Bitcoin Cash halving which takes place in 160 days and pointed to a lot of things. As the Bitcoin Cash news show, the cryptocurrency emerged as a result of a Bitcoin hard fork back in 2017. The first BCH halvening is therefore expected in about 160 days from now, where the rewards for miners within the network will be cut down in two.
The BD director at Kraken also warned that the Bitcoin Cash halvening may become a real catastrophe for the BCH chain and even may cause a high risk of 51% attacks. In his recent tweet, Hedl expressed his concern about the approaching halving event of the network.
He said that as the block reward gets reduced in half, miners will lose profit and a lot of them are likely to switch to Bitcoin, since the hashrate algorithm is the same. This may hit the BCH hashrate too and increase a chance of 51% attacks.
“Bcash halvening occurs first > block subsidy drops in half > miners switch to Bitcoin (since they share the same hashing algo) > security spend becomes dangerously low > 51% attacks become very easy,” he wrote.
The halvening will be catastrophic for Bcash.
Bcash halvening occurs first > block subsidy drops in half > miners switch to Bitcoin (since they share the same hashing algo) > security spend becomes dangerously low > 51% attacks become very easyhttps://t.co/wfIDIil4kT
— Dan Held (@danheld) October 28, 2019
As we know, the amount of minted coins drops after a halving which is why the price of a coin is expected to surge. This is what many hope that will happen to Bitcoin after another scheduled halvening takes place in May 2020.
The news that Jihan Wu is back as Bitmain’s CEO after the chief executive Micree Zhan was dismissed positively affected the price of Bitcoin Cash (BCH). Despite the fact that Bitmain owns several large mining pools focused on Bitcoin Cash as a network (with BTC.com as the biggest one of them), the price of BCH posted a lot of gains and was an active market leader yesterday.
No one knows for sure if the Bitcoin Cash halvening will affect the BCH price in the future. However, t is clear that changes are coming. Today, for instance, BCH has lost around 5% and is now trading at a price of $278.
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