There is no skyrocketing currency price, no miner death spiral, is BCH halved?

At 8:19 pm on April 8th, after AntPooL dug out the latest block, the long-awaited BCH finally halved production as scheduled, and the BCH mining output fell from 12.5 to 6.25.

It can be seen from the official website of Yinyin. After halving the calculation in terms of computing power per T, BTC's revenue per T is 0.89 yuan, BSV is 0.92 yuan, and BCH is 0.46 yuan. The income is halved.

It is expected that the next BSV will be halved on April 10. The climax of the halving drama belongs to BTC. According to the time when the block is generated, it is expected to be May 14. Similarly, the mining output of the two will be reduced from 12.5 to 6.25.

Can halving bring a bull market? There is finally an answer to this topic. Unfortunately, no one will be satisfied with this answer.

There are a lot of topics about halving, so I wo n’t go into details here. Here are a few little things you might not know.

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1. The BCH is halved. Has it not crashed within 2 hours?

From the BTC.com website, after mining the first block with a half reward in the AntPooL mining pool, no blocks were generated for up to 120 minutes. This makes a lot of wonders, has BCH collapsed? Is n’t it a block in 10 minutes?

Of course not. In fact, with the completion of the halving, the revenue fell, and some of the BCH computing power fled. This will cause the network to be too difficult and the computing power too low, which will affect the block generation. On the BTC network, this adjustment process takes 14 days. However, in the BCH network, this process was accelerated due to the updated DAA difficulty adjustment algorithm.

To put it simply, after the sudden drop in computing power, the interval between blocks is lengthened. At this time, the network will simultaneously reduce the difficulty, so that the block time is adjusted to about 10 minutes again. It can be said that DAA makes BCH even if the computing power drops by 50% instantaneously, it has only a short time impact on the block production speed.

According to Jiang Zhuoer, the founder of BTC.top, the long-term failure to block is that the BCH network is slowly mining, which makes the difficulty lower. However, Liu Chang, the founder of the Zhimi University and a well-known V in the BCH community, estimates that there may be more than 2 hours of block time. "Don't worry, I've seen it in 5 hours," he said.

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2. Why are the halving times of the three currencies different?

BTC, BCH, and BSV are in the same vein. All three are halved every 210,000 blocks, and the average block generation time is 10 minutes. The halving time is different because the halving is not the time, but the block interval.

Precisely, the difficulty adjustment algorithm does not guarantee that a block can be accurately produced in 10 minutes. It is also normal for the network not to produce a block in 30 minutes. This difference is amplified with time, resulting in time out of synchronization.

But why is BCH and BSV so different from Bitcoin? This is related to the situation when BTC forked out of BCH in 2017.

The difficulty adjustment algorithm of BTC stipulates that it is adjusted every 2016 blocks, that is, 14 days. BCH has just been born, and its computing power is very small. If it still inherits the difficulty adjustment algorithm of BTC, the difficulty is high and the computing power is low. When the next difficulty adjustment takes three months, its block generation time will exceed 100 minutes. Who will come? Mining, BCH will be gone as soon as it is born.

Therefore, the EDA algorithm that can quickly adjust the difficulty has become a firefighter. It is very interesting. It accelerates the speed of BCH block production. As a result, its coin production rate is too fast, and even produces about 123,000 tokens ahead of BTC. As a result, EDA was updated to the above DAA algorithm, which stabilized the BCH block generation at about 144 blocks per day.

3. Where does BCH computing power go? Will 51% attack happen?

This topic is very hot, but it is not easy to judge. In short, where the computing power goes, it must be where the mining income is higher, and the income is related to the computing power and the currency price.

If we now look at the single T computing power gains of the three chains, we can find that the BTC gain is 0.89 yuan per T, the BSV is 0.92 yuan, and the BCH is 0.46 yuan. The income is halved.

As a matter of fact, without large fluctuations in currency prices, half of BCH's computing power will be transferred to BSV or BTC in a short time. However, it must be understood that BCH and BSV account for only about 3% and 2% of BTC's computing power, so changes in BCH's computing power have very little impact on Bitcoin.

There is an interesting point. Will BCH become easily attacked because of the escape of computing power? And enter the death spiral.

This does not happen. First, with the difficulty adjustment, the BCH mining revenue per T will return to similar levels as BSV and BTC. In other words, mining is always a dynamic balancing process. The value of the currency is there, and the computing power is there.

Is it possible for BCH to be attacked by 51%, in fact this is unlikely. As we all know, at present, the top four mining pools of BCH are AntPool, BTC.TOP, ViaBTC and BTC.com. These four mining pools account for more than 70% of the computing power of the entire network. It is precisely that these four mining pools either belong directly to Bit The mainland, either standing in line with the bit continent, therefore, they have no incentive to attack the BCH. From the current situation of industry development, even if the BCH computing power is relatively small, practitioners are not likely to mobilize computing power to attack BCH.

BCH mining pool share chart, April 8

But is there a possibility that the invisible hash power owner can profit by attacking and shorting BCH? It is possible, but it is likely to come from players outside the mining industry, or at least it is unlikely that an attack will occur on the bright side.

But it is undeniable that the above-mentioned four mining pools are also the head computing power of the BTC network. Therefore, when necessary, these computing powers may be poured into the BCH network to deal with computing power attacks.

Will this cause centralization of computing power?

This is not the case, it is already the case, but in the blockchain world, sometimes this is not so important. Think about it, who stares at the centralization of POS all day long?