Bitcoin Cash has just halving but the price drops sharply when it becomes vulnerable

As previously reported, the controversial Bitcoin Cash - BTC hard fork has just made its first halving, so analysts are closely monitoring the BCH price response to the event.

As observed, halving BCH has no significant impact on price action and does not attract much of the industry's attention, demonstrating a lack of enthusiasm around this cryptocurrency.

Even a well-known investor believes that the event caused a sharp decline, because of the potential to reduce the security of the entire network.

This happens when the 51% attack cost decreases, currently requiring only $ 7,500 for an hour-long attack.

Bitcoin Cash has halving a marked discount

Miner BCH will now receive less block rewards (reduced from 12.5 BCH to 6.25 BCH), significantly reducing profits and potentially leading to mass-scaling if insufficient resources are maintained. long.

Although many investors and analysts claim that halving Bitcoin will help increase prices, the same thing is probably not true for BCH, mainly due to the decline in network security.

Spencer Noon, who is in charge of cryptocurrency investments at DTC Capital, talked about this in a recent tweet, explaining that miner's revenue plays an integral role in the network security budget, thus profitability declines. reduced BCH waterfall makes it less attractive in the eyes of the miners.

“Halvening will definitely cause a BCH discount. To repeat: Mining revenue = Fee + block reward. Mining revenue = Security budget. The highest fee a BCH miner made in a day in the past year was $ 358. Now, the reward drops to under $ 250K per day. Miner doesn't do no work. ”

The cost of performing a 51% attack on BCH decreased after halving

On the cryptocurrency mining data site CoinWarz, both the difficulty and the hashrate of the Bitcoin Cash network fall free after halving. In particular, the hashrate (calculated energy allocated to the mining blocks) reached 785 petahash per second, down 80% from the peak on April 8 of 4,001.5 petahash per second. The difficulty of the block (the calculation difficulty that miners need to solve to handle the blocks) has been reduced to 269 billion, down nearly 50% from the peak on April 8 of 528 billion. Due to the simultaneous decline in both difficulty and hashrate, the security of Bitcoin Cash has been suspected.

At the same time, halving had a noticeable impact on network security costs, as the cost of performing a 51% PoW attack in 1 hour for Bitcoin Cash plunged from $ 22,000 before halving to $ 7,500.

Lina Seiche, a famous Bitcoin commentator and marketing director at BTSE, talked about this in a recent tweet, citing the chart showing the current cost of Bitcoin Cash blockchain attacks.

"The cost to attack Bitcoin Cash in 1 hour is $ 7,517, down from $ 22,000 of April 8."

While comparing this cost with nearly $ 620,000 to perform an hour attack on Bitcoin (14.4% higher than BCH) or $ 90,517 for Ethereum, it's clear how weak the current Bitcoin Cash network is.

Attack cost is the cost of hiring enough mining power to control 51% of the network. With a 51% attack, the central attacker can take over the blockchain, allowing them to reverse and censor certain transactions. Service providers or exchanges that accept the blockchain of a blockchain being hacked are at a loss because the attacker can send the coin to a platform for money, then reverse the transfer, doubling the amount one by one. effectively.

You can see the price of BCH here.

Minh Anh

According to AZCoin News

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