The Bitcoin Cash network becomes insecure after a halving

Since the third Bitcoin halving event, the average BTC fees have increased and the average transaction value has decreased. However, the lifeblood of the network is that the hashrate is still maintaining well, especially after the difficulty adjustment.

From the chart, the average hashrate decreased from 121 million T / s to 90.65 million Th / s, a decrease of 25%. Difficulty adjusts from 16T to 15.6T, indicating that the old miner is shutting down the rig due to the halving of the reward. At the same time, the difficulty adjustment is too small for the miner to be profitable, so the hashrate continues to decrease.

Source: Coinmetrics

Additionally, the increase in fees is linked to the mempools, which were very crowded after the halving. As can be seen below, transactions in the mempool have increased significantly following the event, however, this is only a small spike compared to the spike of 2017.

Source: Blockchain.com

Bitrefill CEO Sergej Kotliar mentioned 2 reasons for this spike: the halving event and the mysterious entity merging the outputs at the highest fees, driving the fees soaring.

The major spikes have occurred as Bitcoin rose in value, which shows that they are related to the traffic of exchanges. The current situation for Bitcoin Cash is very different from 2017. Everyone is using fee estimates right now, although they are not always a good algorithm. Everyone understands about fees when trading.

Source: Twitter

Source: Twitter

Bitcoin Cash appears to suffer the most after the halving. The hashrate for BCH has been reduced from 3.3 million TH / s to 1.5 million TH / s. This is a brutal threat to the security of the network as the 1 hour cost of a 51% attack on the BCH network is now only $ 9,000.

Source: Coinmetrics

While Bitcoin is still strong after the halving and becoming more secure, BCH is doing just the opposite. The number of Bitcoin Cash transactions fell from 90,000 to 56,000 while the value transferred was reduced 60% to $ 1,500 on May 19.

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