bitcoin Cash [BCH] enjoyed a fruitful period in the cryptocurrency sphere during the past week as the collective market was painted green by the bulls. The Roger Ver-led digital asset witnessed a massive 87.32% price hike over the week. To put the value in perspective, the coin went from $165.9 on March 31, 2019, to $314.67, at press time.
Roger Ver also made a recent claim that bitcoin Cash [BCH] had more credibility in the market than bitcoin [BTC] due to its improved implementation in Japan. He criticized the BTC Lightning Network and stated that it provided a horrible experience for users and the long scalability of the network.
However, bitcoin Cash might witness a major issue soon. According to an analysis by Long Hash, bitcoin Cash’s scheduled halving event next year could cause severe side effects in the security of the network.
bitcoin Cash had a higher issuance rate during its earlier stages of development, which made mining BCH more profitable than mining BTC. The network had a different difficulty adjustment algorithm [DAA] which had increased the monetary base at a faster rate than in bitcoin. This led to a sharp decline in the bitcoin hashrate, as miners flocked into the bitcoin Cash network.
With the impending BCH halving, the situation might soon differ. The halving would reduce the overall block reward. A lower block subsidy would eventually lead to a decline in security because miners would be reluctant to use their high hashing power to secure the network for reduced rewards.
The failed SegWit2x hard fork of 2017 had shown miners follow the incentive. bitcoin Cash [BCH] remained relatively unsecured as it shared its SHA-256 hashing power on various cryptocurrency networks. The upcoming halving could cause further strain the network in terms of security strength.
The dominance of the SHA-256 hashing algorithm by bitcoin makes bitcoin Cash network’s security very questionable. However, the sliver of hope for bitcoin Cash remains in the recent price pump. If the improved valuation remains constant for the network’s security in the aftermath of the halving, miners might still remain in the BCH network and use their high hashing power.
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Published at Mon, 08 Apr 2019 06:01:39 +0000
