The Bitcoin Cash halving is happening in April this year so we wonder how the fourth largest crypto network by market cap will react to it. Much like Bitcoin, Bitcoin cash will be cutting the block rewards and its dispense to the miners by 50 percent to 6.25.
According to many of the industry players, The Bitcoin cash halving may not have a big effect on its price. There’s could be some changes into the hashrate of the network or the computing power as a result of the halving before Bitcoin’s while the ongoing dispute over the potential ‘developer tax’ could even increase the long-term economic impact.
The Bitcoin Cash developer Jonathan Toomim explained that we cannot predict the cryptocurrency’s price movements that will happen after the halving:
“If the markets were rational, they would have already priced in the halving. However, the markets are dumb, reactionary, and whimsical, and I have no idea what they will do.”
Assuming how the situation on the markets is, Simon Dingle, a crypto analyst, explained that he is skeptical that the halving could have a hugely positive effect on the price of Bitcoin Cash. The decrease in supply has a strong impact if there is a sustainable demand for the altcoin and he said that he cannot imagine that. Dingle described Bitcoin Cash as an interesting but ‘’obscure experiment in on-chain scaling that will prove itself in any real way. It would be interesting if we found that a fat protocol was the way to scale a cryptocurrency but everything we know from the network science suggests it just won’t work.’’
Some of the other experts believe that the Bitcoin cash halving will have a positive effect on the Bitcoin Cash price but they worry that the recent discord over the developer tax could cancel out the effect:
“The positive effect on the price of this year’s halving threatens to be derailed by the looming split in the chain over the developer tax, or miner tax depending on where you stand on the controversy. All things being equal a halving should be good news for a mined coin but when the largest mining pool is threatening to operate at a loss in order to drive out those who refuse to go along with the developer fund, it might be a different matter.”
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