All eyes are watching the impact of the upcoming bitcoin halving on its price action.
The day before yesterday, BCH undid its block reward, which had only a negligible impact on the price action and remained largely unnoticed by the crypto industry - a sign of the lack of enthusiasm associated with Bitcoin Cash .
It is important that a prominent investor now notes that he believes this event was clearly bearish for the cryptocurrency, as it is likely to reduce the cryptocurrency's overall network security.
The cost of performing a 51 percent attack is now only $ 7,500 for a one-hour attack.
Bitcoin Cash is experiencing an "undoubtedly pessimistic" cut in half
Although many investors and analysts view halving block rewards as bullish, this event was not as sparkling for BCH.
Spencer Noon, head of crypto investments at DTC Capital, spoke about this in a tweet recently, stating that the miners' earnings play a vital role in the security aspect of a network, making the BCH's already low profitability even more unattractive.
“THE HALVING IS UNDOUBTEDLY BEARISH FOR BCH. REMINDER: REVENUE FROM THE MINERS = FEES + BLOCK PREMIUMS. MINING REVENUE = SECURITY BUDGET. MOST OF THE FEES THE BCH MINERS EARNED IN A SINGLE DAY LAST YEAR WERE $ 358. BLOCK PREMIUMS HAVE NOW BEEN REDUCED TO <$ 250K A DAY. MINERS DON'T WORK FOR NOTHING, ”HE SAID.
Cost of performing a 51% attack
The impact of the recent halving on network security is already evident as the cost of performing a 51 percent PoW attack on Bitcoin Cash for an hour fell from $ 22,000 before halving to currently $ 7,500 before halving .
Lina Seiche, a popular Bitcoin commentator and marketing director at BTSE, spoke about it in a recent tweet and referred to a chart that shows the current cost of attacking the Bitcoin cash blockchain.
“THE COST TO ATTACK BCASH FOR AN HOUR IS NOW $ 7,517, COMPARED TO $ 22,000 YESTERDAY.
Comparing these costs to the nearly $ 600,000 required to attack Bitcoin one hour shows how weak Bitcoin Cash is at the moment.