Bitcoin Cash, a digital currency coin that split off from Bitcoin three years ago, is on a countdown for halving today.
The cryptocurrency will halve in the nearest hours today, April 8th. This means, the total number of Bitcoin Cash digital coins, mined per block nearly every 10 minutes, will be reduced from 12.5 to 6.25 BCH.
Bitcoin Cash currently contains an amount of 630.000 blocks. When the last of them will be divided, the number of digital coins found per each block will reduce. The fact leads the total supply of BCH tokens to 21 million.
The halving is the first ever for Bitcoin Cash, which is number 5 digital currency by market capitalization. The coin, considered to be a hard fork of Bitcoin since 2017, however is not the only one to witness a halving process this week. Bitcoin SV (BSV), the other digital currency that forked from Bitcoin Cach (BCH) just a year later, will be going through a similar token halving within the nearest few days.
The price of Bitcoin Cash (BCH) has already risen by more than 12% on April 8 and is around $274 USD at the press time. Bitcoin SV (BSV) also followed its counterpart and made a sharp turn up nearly 20% reaching the price of $218.
Might affect Bitcoin’s price
Although Bitcoin (BTC) is counting days itself to its block reward halving on May 13th, the processes of this week might have an impact on it as well. Crypto experts predict that if BCH and BSV miners decide to turn towards Bitcoin, the price of the world’s leading digital currency might go up.
According to report of the blockchain research company Arcane Research, mining is a competitive market which, like all other markets, has its own rules:
The marginal return on mining bitcoin, BCH and BSV should therefore be equal prior to the halving. When rewards are cut in half for BCH and BSV, the profitability of mining those coins are also cut in half, forcing a shift in the market.
Bitcoin is set to cut its reward to the miners from 12.5 to 6.5 BTC per block. The process which occurs once every four years will take place 35 days from now and is already expected to be one of the most important events in the crypto industry.