Bitcoin Network Remains Strong Following Halving
Bitcoin’s third block reward halving was completed on May 11 at the 630,000th block and the spot price incurred awesome bullish and bearish pressures as the F2pool miners took the last block reward of 12.5 BTC.
Following the halving, Bitcoin Cash and Bitcoin SV networks recorded serious declines and this led to widespread speculation regarding a similar trend for Bitcoin. Nevertheless, it seems Bitcoin’s network is stronger than its forks.
BCH and BSV networks recorded a great decline in hash rate after their halving which happened on April 8 and 9, 2020, respectively. Based on CoinMetrics’ data, hash rate on BCH network declined from 2.94 million Th/s to 960k Th/s while a report said the hash rate had fallen by 80 percent from its lifetime peak. Likewise, the hash rate on BSV network was reduced by 60 percent from 3.06 exahashes/sec to 1.23 exahashes.
By comparison, the Bitcoin network is still strong and the hash rate has only recorded a minimal drop. CoinWarz noted that the hash rate on Bitcoin network declined from 145.80 exahashes per second on May 11 to 119.84 exahashes on May 12, representing a 17 percent decrement which is not up to the spectacular capitulation incurred by BCH and BSV.
Besides, BCH and BSV’s mining difficulty declined after halving while Bitcoin is yet to reflect any change in its mining difficulty.
The payment of transaction fees to miners for mining could be why the network of Bitcoin is resilient. Blockchain.com noted that the transaction fees have increased from $1.92 on May 10 to $2.54 on May 11.
Despite the halving of the block reward, the transaction fee paid to miners accounted for about 15 percent of the total block reward, says Zack Voell.
“Fees are now ~15% of the block reward. The post-halving increase is much more pronounced than after the 2016 halving. Y-axis trimmed to 20% for effect.”
When price falls, miners may incur more losses, thereby forcing them to opt out of the network immediately they go beneath the break-even point.