The latest report of CoinMetrics: after halving BCH and BSV, miners will distribute more computing power to BTC in a short time

BCH and BSV will be halved on April 8 and April 9, respectively, which arouses the curiosity of many traders. Many people are speculating about how their halving will affect the price of Bitcoin. Recently, crypto strategist Tone Vays stated that BSV is completely irrelevant and will not have any impact on Bitcoin. After halving BCH, Bitcoin's computing power can be increased by one or two percentage points.

Report: After halving BCH and BSV, miners will distribute more computing power to BTC in a short time

Source: Pixabay

The latest report of CoinMetrics also believes that due to the surrender status of miners, even before the halving in May, the upcoming halving of BCH and BSV will exacerbate the current difficulties faced by miners.


Source: coinmetrics

As shown in the figure, compared with February 13, Bitcoin's computing power has been increasing. As of April 5, Bitcoin's computing power is 114.485E. As Vays pointed out, if the halving of BCH leads to an increase in the computing power of BTC, it may be good news for miners. The report also pointed out that as BCH and BSV are halved, the miner-led selling pressure generated during the crash may continue to increase.

In addition, because all three assets use the same "SHA-256" mining algorithm, miners can redirect their computing power to the asset that provides the highest return on investment. The report further stated that

"When BCH and BSV halve their block rewards, this will force miners to allocate more computing power to Bitcoin, because Bitcoin still has 12.5 BTC block rewards at this time, the distance is reduced to 6.25 BTC It takes about a month. Therefore, we should expect that the difficulty of mining Bitcoin will increase, which will further compress the profitability of all miners. "

At the same time, many competing coins are superior to BTC in terms of transaction speed, scalability and reasonable transaction fees. The Bitcoin ecosystem has long regarded the Lightning Network as a solution to all its shortcomings. The Lightning Network is believed to allow smaller bitcoin payments to be sent faster and at a lower cost.

In fact, Litecoin's Charlie Lee also recently believed that the Lightning Network does help solve Bitcoin's scalability and other problems.

However, Vays believes that even without the help of the Lightning Network, Bitcoin is strong enough, and the Lightning Network has no other requirements other than providing higher privacy. He says,

"Bitcoin transactions are very cheap and very fast. Therefore, the Lightning Network does not have much demand, but the Lightning Network has become more and more powerful, and it has gradually become more and more popular. Within two years, everyone will be satisfied with the Lightning Network because it will provide better privacy. "