One of the most crucial events in the lifetime of most cryptocurrencies is its halving event. Bitcoin Cash (BCH) had its much-anticipated halving on Wednesday. BCH had its first block reward halving yesterday, and the event resulted in a rally in the cryptocurrency. After the halving, BCH soared by 15% over the past 24 hours, and it will likely be in focus over the course of the coming days.
Is Halving a Bullish Sign?
A halving measure generally involves providing miners with half the rewards they used to get for mining one block. In theory, it should lessen the number of tokens in circulation in the long-term. That often leads to the rise in the price of tokens that were halved.
During the same period, Bitcoin SV managed to record gains of 19.4%, so it could be worthwhile for traders and digital asset investors to keep an eye on. BCH experienced a rapid surge, climbing from $249.23 per token to $277.22 per token in the last 24 hours.
However, the halving may not be particularly great news for Bitcoin Cash miners. It should be noted that BCH is the fifth biggest cryptocurrency in the world by market cap, and the rewards are considerable for the miners. However, the reduction of the block rewards by half could hit miners particularly hard.
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The halving of the rewards will eventually result in gross margins dropping to almost zero once other costs are factored in. This is a situation that is certainly going to be in the minds of traders and investors as they go about figuring out the Bitcoin Cash halving. It remains to be seen how the miners react to the news.
What do you think about the Bitcoin Cash halving? Do you agree with the process?
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