Arguably the two most controversial cryptocurrencies, Bitcoin Cash (ABC) and Bitcoin SV (BSV) have undergone their respective halving, reducing miners rewards to half its former amount in a move which hopes to increase scarcity and subsequently value. Couple of very popular cryptocurrencies are going to have similar events this year, notably bitcoin; the most popular cryptocurrency.
The build up to the halving events is always torrid and dramatic with speculations surrounding different aspects of the projects, especially the market movements and reputation of the project as a slash in mining rewards comes with mixed feelings and is viewed from different angles by different interest groups associated with the project.
Bitcoin Cash ABC (BCH) had its halving earlier (APR. 8 2020) with its fellow bitcoin fork bitcoin SV (BSV) following suit about forty-eight (48) hours (APR. 10 2020) later each slashing miners' rewards to 6.25 coins per block from an initial 12.5 coins per block. With this event gone and miners having known their fate, here’s the aftermath and what we learnt from this event.
Miners attrition and slump in hash rate
Lesser reward, lesser interest, a 50% drop in rewards with an uncertainty in compensation promises is enough to kill one’s interest in any activity. Miners spend a lot in energy fees and other mining costs including costs of setting up the mines; these expenses are expected to be compensated with the mining rewards, with the drop in rewards, it is logical that miners will exit the mines and/or simply switch to other coins with better mining ROI. Being the first to half, BCH experience a peak 83% drop in hash rate as miners switched to mining BSV before its own halving, after BSV’s halving, BCH hash rate picked up a bit but fell back to a 74% hash rate drop with BSV following suit with some huge drop in hash rate.
SBI Holdings share in BSV rises by over 300%
Japanese firm SBI holdings might as well be having a whole of smiles since the BSV halving with an enormous growth in their BSV mining pool shares. The company which also own about 3% shares in BCH mining have seen their 4.4% share in BSV mining spike to 15.8% and about 18% at the time of this writing. Business must be going great for the Japanese firm who also owns a cryptocurrency exchange in Japan and facing new cryptocurrency regulatory laws which are set to come in force during the first week of the coming month. SBI holdings shares in BCH haven’t seen much fluctuations since the halving as their cordial relationship with BSV’s Craig Wright is expected to grow.
Despite pulling a 24hrs uptrend stunt that will forever remain green in our minds, BSV price continues to stay below $200 as the corona virus pandemic has had much negative effects on its price as well it’s rival BCH and every other cryptocurrency project. The build up to the halving has had a better effect on the value of both cryptocurrencies at this point with only little price moves coming as a result of the halving. Scarcity breeds value, the post halving might have more positive effects on the two cryptocurrencies later on recent market trends points at more green candles, however, the current global situation might have exceeding negative effects. These two coins are ones to watch.
Changes in transactions per block relative to BTC
BCH’s number of transactions per block have continued to stay below that of bitcoin despite the much expected, reasonably reward halving shouldn’t have much effect on the number of transactions per block, however, one would expect activities on these two blockchains to increase as this much anticipated event is expected to drive more actions from holders and the cryptocurrency community. This hasn’t been the case for bitcoin Cash ABC, BSV has seen some uptrend in the number of transactions per block relative to Bitcoin maintaining an uptrend which has continued before the halving.
All statistics charts are culled from coindance