Bitcoin Cash is only a few hours before Halving, is this a future indicator for halving Bitcoin

Bitcoin Cash (BCH), the fifth largest cryptocurrency asset by market capitalization, will undergo halving in less than 6 hours. With the third halving, Bitcoin (BTC) is just over a month away, and with this halving, does BCH give us a glimpse into the future of BTC?

Halving events are often increased because they basically regulate supply and historically have led to an increase in demand and prices. However, with the devastation of the COVID-19 pandemic across the world economies, everything is far different from the present time.

Like its BTC sibling, the block reward will decrease from 12.5 to 6.25 while inflation will decrease from 3.64% to 1.80%.

Coinmaketcap also reported that there are currently 18.37 million BCH in circulation, accounting for 87.49% of the 21 million supply. Similar to BTC, an unknown (not a small number) of these are lost or inaccessible.

From a price perspective, Bitcoin Cash has had a strong recovery this week as it surged up to 30%. However, since the highest level in 2020 was just under $ 500, BCH has dropped nearly 50% from the current level.

There is no halving pump as it was with Litecoin last year, and maybe BCH doesn't really get much boost from this event. The on-chain metrics look quite grim for assets as miners may be turning to Bitcoin because it is more profitable.

The hash rate is currently down 34% from its peak in 2020 and 60% from its all-time high. With the current hash rate of 3.27 EH / s, the health of the BCH network is in the gutter and things can get worse when the block reward is cut.

Indicators for the future of Bitcoin?

The Bitcoin network actually looks much healthier than its hard forks. With less than 36 days to reach the destination, prices and on-chain metrics for BTC are improving.

As Bitcoin Magazine previously reported, some key metrics such as hash rate, Puell Rate and MVRV ratio, are now turning to increase. Additionally, Bitcoin hashes have returned above 100 EH / s and have been in an uptrend since mid-March.

The BTC price also seems to have found a bottom and it is likely that there will be no further mining investments as indicated by a hash band.

Bitcoin has been trying to hold above $ 7,000 this week and technical prediction indicators such as the stock movement pattern show that the asset is still on track for a big gain after halving next month. The same thing may not apply to Bitcoin Cash. By simple, Bitcoin is number one and special.

Ray Dalio, the legendary investor who runs the world's largest hedge fund, thinks there are better assets to hold instead of cash as central banks continue to print money and keep interest rates low to counter. respond to the Covid-19 pandemic.

"Remember that while the value of cash doesn't change as much as other assets, holding is equivalent to losing opportunity costs," the billionaire investor said during the AMA event on Reddit. on Tuesday.

“So I still think that cash is worthless compared to other alternatives, especially assets that hold prices or even rise during periods of inflation (for example, some gold, bitcoin and some stocks).

"As printers continue to operate, many people feel like they own the most valuable assets in the world, especially in the time when everyone needs money" - he shared before emphasizing that people need to health first, education and the ability to take care of families. "I think a lot about the value of money, and I believe they have no intrinsic value."

Guan Yu

According to BeInCrypto

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