Bitcoin Cash halving may not be the savior it needs

In less than a day, Bitcoin Cash (BCH) will undergo its halving, reducing the block reward. The event may be a precursor for the highly anticipated halving of its big brother in just over a months’ time.

According to the BCH block half counter, the fourth largest crypto asset will undergo its halving on Wednesday this week, April 8.

Just like its big brother Bitcoin, block rewards will drop from 12.5 to 6.25 BCH while inflation falls from 3.64% to 1.8%.

The counter also adds that there are currently 18.37 million coins in circulation, which is 87.49% of the total supply.

Halvings are usually bullish events, but the COVID-19 outbreak has overshadowed this one with Bitcoin Cash prices still wallowing around US$250 [AU$406].

Since its 2020 peak of just below $500, BCH has dumped almost 50% to current levels and has not seen the recovery that Bitcoin has.

There are also reports on crypto twitter that, along with most other crypto media, Roger Ver’s has slashed its staff and is now working on a skeleton crew.

In terms of on-chain metrics, the Bitcoin Cash hash rate is still woefully low, indicating that miners are continuing to capitulate or switch to mining BTC instead.

The current hash rate is 3.275 EH/s, which is down 34% since its 2020 peak and 58% since its all-time high according to bitinfocharts.

Rounding up this data, it seems that Bitcoin Cash will need more than a halving to rescue it this time.

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