Top cryptocurrency analyst Mati Greenspan has tweeted out that Bitcoin Cash’s hashrate has started to capitulate after the cryptocurrency’s halving event.
According to Greenspan’s tweet, after the Bitcoin Cash halving on April 8, it’s no longer profitable for miners to keep on mining BCH, and as a result they’re switching over to Bitcoin (BTC) ahead of the flagship cryptocurrency’s halving, expected to occur in May.
Bitcoin Cash hashrate capitulation.— Mati Grrrrreenspan (tweets are not trading advice) (@MatiGreenspan) April 13, 2020
After the halving on April 8th, it's no longer profitable to mine BCH causing many miners to switch over to BTC. pic.twitter.com/vISDMX5l7z
In Mati’s tweet it’s possible to see Bitcoin Cash’s hashrate plummeted after the halving as miners switch to another blockchain. The halving cut the cryptocurrency’s block rewards in half, from 12.5 BCH per block to 6.25 BCH. This effectively cut miners’ revenue in half as well.
Bitcoin Cash is a fork of Bitcoin itself, which means it shares the same hashing algorithm as the flagship cryptocurrency. Bitcoin SV (BSV), a fork of Bitcoin Cash, also shares the same hashing algorithm and as CryptoGlobe reported, its hashrate also plummeted shortly after its own halving event.
It’s currently unclear whether miners are moving to another blockchain, or whether the halving affects hashrate tracking tools. Blocks on these cryptocurrencies’ blockchains are found every 10 minutes, and the hashrate is calculated according to these blocks.
Responding to other users on social media Greenspan admitted it’s possible that after the BTC halving the hashrate goes back up on BCH’s blockchain, as once block rewards are cut in half on Bitcoin’s blockchain it won’t be so profitable for miners to make the switch.