Bitcoin Cash, one of the digital currencies born from Bitcoin hard forks, entered its second halving this Wednesday. This token came to light in 2017 as an almost identical copy of the largest cryptocurrency, including its PoW consensus mechanism.
In any case, at block 840,000, this coin experienced a halving of its rewards for each mined block. With this, the rewards to miners drop from 6.25 to 3,125 BCH for each block of transactions correctly processed. The technical aspect of this cut is not substantially different from what happens in Bitcoin.
BCH has an issuance limit of 21 million coins, of which almost 19.7 million are already in circulation. Meanwhile, the 50% cut in rewards is also considered an element of generating token scarcity. Several elements came together this year to generate a positive environment among investors of this currency.
In any case, the unknown now focuses on the immediate future of the token price. Will the recently applied halving be able to cause an increase in the short term? What will be the maximum that the currency will experience at the end of the bullish cycle? And will there be a new all-time high? In advance we can say that in this work we do not answer any of those questions, but at least we analyze the context of the currency.
What will the post-halving stage of Bitcoin Cash be like?
Now that the new halving is operational on the Bitcoin Cash network, the community is wondering what the future of the currency is. For several days, positive news has accumulated and allowed the exchange value of the currency to maintain a healthy rally.
In fact, the coin hit three-year highs of $698 per coin. At the time of writing, the price is up 11% and is trading at approximately $670 per unit. Investors remain hopeful that this halving will fuel a trend that will take it to all-time highs.
It should be noted that the ATH of this currency occurred in December 2017, when it exceeded $3,300 dollars. For the 2021 bull-run it reached $1,650. This means that the 2021 highs could be acceptable even for investors entering now.
It should be noted that the rise in the price of the token allows it to grow in terms of market capitalization. Consequently, the coin is rapidly approaching the top 10 of the main cryptos. Despite the profit taking of the last few hours, the coin’s 7-day performance remains above 30%, according to data from CoinMarketCap.
There are reasons to think that the price of the currency will rise in the short term. One of them is the decision of the regulators (CFTC) to place it in the category of commodities, in the same way as Bitcoin. The latter means that it will not suffer persecution from the SEC.
