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Bitcoin cash (BCH) is in the headlines after a website posted its date of halving. Meanwhile, Experts are advising to hold BTC during its halving
The issuance of new BTC into circulation is halved every four years during the Bitcoin halving event. By the year 2140, the network will have produced 21 Million coins, marking the year of the last Bitcoin halving. Just like BTC, there is an underlooked cryptocurrency which is called Bitcoin Cash (BCH), The block rewards for BCH will be reduced from 6.25 BCH to 3.125 BCH in the next halving, emphasizing the deflationary quality of the digital asset.
Bitcoin Cash Halving is Near
As per the OKLink Con platform, the next halving of Bitcoin Cash is scheduled for April 5, 2024. As the date nears, traders and enthusiasts are keeping a close watch on the block status. As per the most recent update, there are 38 days and 22 hours remaining for the event, with 5,605 blocks left.
Bitcoin Cash is a fork of the Bitcoin blockchain. It has many of the same characteristics as Bitcoin. Therefore the price patterns on the longer horizon stay similar.
Bryan Legend Speaks about Halving
According to Bryan Legend, CEO of Hectic Labs and an investor, holding Bitcoin during the pre-halving period can be profitable. He suggests that the pre-halving period preceding the actual halving event is an excellent time to realize gains. However, timing the market to know when to exit at the top is challenging.
Traders buying in advance and miners holding onto a more significant portion of their rewards lead to the pre-halving rally. In the aftermath of the halving, the hash rate tends to drop, block production stalls from 10 to 15-25 minutes, causing uncertainty. However, Lunde predicts a brief correction before Bitcoin resumes its price rally to new all-time highs.
Bitcoin Miners Are Diversified
Bitcoin miners are diversifying revenue streams, increasing efficiency and reducing costs as mining rewards are set to be cut in half next month. The Bitcoin halving will drop per-block rewards for BTC miners from 6.25 BTC to 3.125 BTC, causing financial stress on companies in the sector and leading to shutdowns or acquisitions.
Summary
The next halving of Bitcoin Cash is estimated to occur on April 5, 2024. Pre-halving rally is expected as traders buy in advance and miners hold onto their rewards. After the halving, block production may stall causing uncertainty, but experts predict a brief correction before Bitcoin resumes its price rally to new all-time highs.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
