Post-halving Bitcoin Cash (BCH) On-Chain Metrics Still Declining
The first block reward halving event for Bitcoin Cash (BCH) happened on April 8, 2020, reducing its network’s block reward by 50 percent as of block 630,000 and BCH miners hashing away at the network will now capture only 6.25 coins per block going forward, instead of 12.5. However, BCH fundamentals are still declining over a month after the event.
Yassine Elmandjra of ARK Invest tweeted about the status of BCH about 16 hours ago, noting that its fundamentals are still declining after the halving event:
“Bitcoin Cash is not looking healthy: – Hashrate down 30% since halving (& only accounts for ~2% of SHA256 hash) – Economic throughput at all time lows – Fees are .05% of miner rev (<$100/day) – Theoretical 51% attack costs <$10k/hr Surprised we haven’t seen a large scale attack yet.”
At press time, the Bitcoin Cash hash rate was 2.38 EH/s, representing a 33.5 percent reduction in the rate before the halving event. After the event, numerous miners left the network and possibly moved their resources to Bitcoin chain where the mining reward was still 12.5 BTC at the time. A month later, Bitcoin halving occurred with numerous mining nodes yet to return to the BCH chain.
Likewise, it seems economic activity in the BCH chain has halted. According to Coin Dance data, 5.2 percent of all new transactions across BTC, BCH, and BSV come from BCH accounts. Such a reduction in economic activity is likewise saying that BCH miners are receiving approximately 0.05 percent of their revenue from fees, while BTC miners are receiving over 10 percent of revenue from transaction costs.