Why Bitcoin Halving Can be Good News for the Forks – Bcash and BSV?

11 May, 2020 Updated 20 Jul, 2022

Contributor

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on X at @nivishoes or mail him at nivesh(at)coingape.com

Read full bio

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Sponsored

Win upto $300,000 . AD ›

Get up to $1190 Reward . AD ›

Bitcoin [BTC] halving is less than 15 hours away, the run-up to the event in the last couple of weeks have been quite exciting. Reportedly, more than 30% of the BTC mining ecosystem presently employs the S9 miners.

Currently, the percentage of total mining hash-rate of BCH and BSV is around 1% of the total hash-rate for Bitcoin [BTC]. The hashrate on these altcoins is currently around the 2018 and early 2019 bear market levels. While Bitcoin has seen a 2.5 fold increase since then, BSV and BCH hashrates continue to remain in the lower range. After halving, some of these systems might look for other SHA-256 algorithms to seek profitability.

bch and bsv hash-rate — Bitcoin Cash and Bitcoin SV Hash-Rate (Source)

However, evidence from the Black Thursday crash of March 2020 indicate that switch to Bitcoin Cash [BCH] and Bitcoin SV is unlikely. The S9 and S15 miners which became unprofitable with Bitcoin after crash in March did not switch to BCH or BSV.

Of course, the drop in the prices of the entire market restricted the switch over. Currently, Bitcoin is trading around 10% higher than the value before the crash, while BSV and BCH are down 7.5% and 15%, respectively.

bch btc bsv — BTC (Blue) Vs. BSV (Orange) Vs. BCH (Green) Price Comparison

After the recent halving in April in Bitcoin Cash [BCH] and Bitcoin SV [BSV], the hash-rate has dropped by nearly 50% on both Blockchains. According to Minerstat , the profitability of S9 for BCH and BSV mining is around $1.5 for a standalone system.

bitcoin halving profits — XBT/USD 1-Day Chart with Halving Profitability (TradingView)

The break-even cost for Bitcoin for the S15 and S9 hardware post halving is likely to be above $15,000. Given the current price action, it is unlikely that the price will hold this levels in the short to medium term. Moreover, since these cryptocurrencies have already gone through the halving process, some of the efficient S9 and S15 miners might start to compete with these altcoins miners. Increased competition for hashrate could lead to growth of BCH and BSV ecosystem.

Do you think that the S9 or S15 miners will become completely obsolete or will be used in the future? Please share your views with us.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.