In April 2024, Bitcoin Cash, a hard fork of Bitcoin designed for faster and cheaper transactions by increasing block sizes, will experience its second halving event. Born in 2017 from a need to enhance transaction efficiency, Bitcoin Cash retains many of Bitcoin's foundational features. However, it features key differences that address transaction speed and costs, making it an alternative for daily transactions and micro-transactions.
This halving, a part of Bitcoin Cash’s protocol similar to Bitcoin and Litecoin, occurs every four years or 210,000 blocks, aiming to reduce miner rewards by half to control supply and incentivize the network’s security and value.
Bitcoin Cash Halving Countdown
Bitcoin Cash halving is estimated to occur in April 2024.
Bitcoin Cash (BCH) Halving Countdown Timer: Updated in Real Time
What Is Bitcoin Cash Halving?
Bitcoin Cash was created on August 1, 2017, as a result of a hard fork from Bitcoin. This split was driven by a disagreement within the Bitcoin community about how to scale the network. Proponents of Bitcoin Cash sought to increase the block size limit to allow for more transactions per block, aiming to improve transaction speed and reduce fees, positioning Bitcoin Cash as a more practical choice for daily transactions and micro-transactions compared to Bitcoin.
Another blockchain also emerged at this time. Bitcoin SV (BSV) originated from a hard fork of Bitcoin Cash (BCH) in November 2018. This split was primarily due to disagreements within the Bitcoin Cash community over the network's technical direction, with BSV aiming to restore Bitcoin to its original protocol and significantly increase block size to scale the network.
Similar to Bitcoin and Litecoin, the Bitcoin Cash blockchain utilizes the Proof of Work (PoW) consensus mechanism and requires miners to solve complex cryptographic puzzles to validate transactions and create new blocks. This process ensures network security and decentralization, as successfully mining a block and adding it to the blockchain requires significant computational effort, rewarded with BCH. The halving event also reduces this mining reward, aiming to control inflation and mimic scarcity, influencing the overall supply and potentially the value of BCH over time.
Bitcoin Cash halving is an event that cuts the reward for mining new blocks on the BCH blockchain by half. Originally set at 12.5 BCH per block, the reward decreases at predetermined intervals to control the supply and incentivize miners.
The Bitcoin Cash block halving event, scheduled approximately every four years or after 210,000 blocks, will reduce the mining reward from 6.25 BCH to 3.125 BCH. This mechanism, embedded in Bitcoin Cash's code, diminishes the rate at which new BCH is generated, emulating scarcity and controlling inflation—similar to gold. It contrasts with conventional FIAT currencies, which can inflate from increased supply by governments or banks. With a total cap of 21 million BCH, Bitcoin Cash aims to offer a deflationary safeguard against inflation, underpinning its value and adoption potential.
A Look Back at the Previous Bitcoin Cash Halving
|
Halving Event |
Block Height |
Block Reward |
BCH Price on Halving Date |
BCH Price 150 Days After Halving |
|
1st Halving |
630,000 |
6.25 BCH |
$266.24 |
$225.30 |
|
2nd Halving |
840,000 |
3.125 BCH |
- |
- |
The first Bitcoin Cash halving event occurred on April 8, 2020, when the 630,000th block was mined. This event marked a significant milestone for Bitcoin Cash since its inception in 2017. It reduced miner rewards by half, from 12.5 BCH to 6.25 BCH per block, as part of its deflationary monetary policy.
This event saw a significant drop in the Bitcoin Cash hashrate, indicating some miners may have ceased operations due to lower profitability. The price of BCH also experienced a considerable drop immediately after the halving, following a pattern of "buy the rumor, sell the news," with a 14% decrease in price six weeks post-halving.
The 2020 halving, like those in the broader cryptocurrency world, offered insights into the resilience and adaptability of blockchain networks facing reduced rewards for miners. Although a multitude of factors can influence price and network activity, halving events provide key moments to assess the health and future potential of PoW cryptocurrencies like Bitcoin Cash.
When Is the Next Bitcoin Cash Halving Event?
The next Bitcoin Cash halving event is expected to occur on April 3, 2024 at approximately 01:15 UTC, at a block height of 840,000.
How Halving Influences Bitcoin Cash Ecosystem
Halving directly impacts Bitcoin Cash by reducing the block rewards given to miners, cutting it in half. This significant change affects various aspects of the BCH ecosystem:
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Miners and Network Security: The immediate effect of halving. Reduced rewards may lead to decreased profitability for miners, especially those operating with high costs or outdated equipment. This reduction could lead to a temporary decrease in mining activity, potentially affecting network security. However, if the price of BCH increases in response to the reduced supply, mining could remain profitable, thereby maintaining network security.
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Transaction Fees: With the reduction in block rewards, miners may prioritize transactions with higher fees. While Bitcoin Cash is known for its low transaction fees, there could be a slight increase as miners look to compensate for lost block rewards.
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BCH Price Performance Pre and Post Halving: Historically, halving events have led to increased prices in the long term. The reduced supply of new coins entering the market can lead to upward pressure on price, assuming demand remains constant or increases.
Impact of Halving on BCH Miners
Bitcoin Cash mining hash rate | Source: CoinWarz
Miners face both challenges and opportunities due to halving:
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Challenges: The immediate challenge is the drop in profitability due to the halved block rewards. Miners with higher operational costs may find it challenging to sustain their operations.
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Opportunities: Halving can also increase prices, making mining more profitable in the long term. Miners may also explore efficiency improvements or shift to mining other cryptocurrencies temporarily.
Bitcoin Cash Price Prediction by Experts
Bitcoin Cash historical price chart | Source: TradingView
Bitcoin Cash (BCH) has had a volatile journey since its creation in 2017. It initially surged in value, reaching highs of over $4,355 in December 2017. However, it hasn't been able to recapture those heights. Over the years, BCH has experienced significant price swings, with a low of around $75 in December 2018. Currently, BCH sits around $660, which is still a decent increase from its launch price but far from its all-time highs.
The price predictions for Bitcoin Cash (BCH) vary significantly among experts and analysts, with several sources offering their forecasts based on technical analysis, historical data, and market trends. Here's a summary of the diverse predictions for BCH:
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Changelly estimates the average price of BCH to be $250.60 by the end of the year.
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CoinPedia suggests that BCH could hit $600 by the end of the week.
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Crypto.News predicts that the price of BCH might drop below $400 ahead of its halving event.
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CoinCodex is more optimistic, expecting BCH to rise by 11.15% in the next 5 days, potentially reaching $663.14 by April 5, 2024.
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OvenAdd provides a long-term forecast, suggesting that BCH could achieve a maximum price of $899.04 by the end of 2024, with an average trading price of around $801.85, and a minimum level possibly dropping to $704.65 in case of a major bearish market event.
These forecasts highlight the volatility and unpredictability of the cryptocurrency market, with predictions ranging from moderate to bullish outcomes for Bitcoin Cash.
How to Trade Bitcoin Cash Halving 2024 with KuCoin
Against the positive market momentum in the global crypto market ahead of 2024’s Bitcoin halving, the Bitcoin Cash (BCH) halving this year could also spark considerable interest and potentially increase volatility in the BCH market. For traders looking to capitalize on this event, KuCoin’s comprehensive platform offers several strategies to engage with Bitcoin Cash trading effectively:
Buy Low and Sell High on the KuCoin Spot Market
Active traders can leverage the KuCoin spot market to execute short-term trades by buying BCH at lower prices and selling during peaks. KuCoin's advanced trading tools and analysis features support a variety of strategies to help traders make informed decisions.
| Buy BCH on the KuCoin Spot Market |
Dollar-Cost-Averaging into Bitcoin Cash
If you're wary of market volatility or hesitant to invest a lump sum, consider the Dollar-Cost Averaging (DCA) method. By investing a fixed amount at regular intervals, you can mitigate the impact of price swings and potentially lower your average entry price over time.
| Implement DCA Strategy on BCH |
Automate BCH Trading With KuCoin Trading Bots
Take advantage of KuCoin's trading bots to automate your Bitcoin Cash trading strategy. Whether you're interested in high-frequency trading or prefer a more set-and-forget approach, KuCoin's range of bots, including Spot Grid, Futures Grid, and DCA, can help optimize your trades according to the market's movements.
| Trade BCH with KuCoin Trading Bots |
Go Long or Short on Bitcoin Cash
For traders comfortable with higher risk for potentially higher rewards, KuCoin Futures allows for long or short positions on BCH. This approach is suitable for speculation on price movements as the halving event approaches, enabling traders to leverage market volatility.
| Trade BCH with KuCoin Futures |
Earn Passive Income While HODLing BCH
KuCoin also offers avenues for earning passive income on your Bitcoin Cash holdings. Through KuCoin Earn, traders can stake BCH or use other investment products to generate earnings over time, complementing their trading strategies.
| Earn BCH with KuCoin Earn |
Conclusion
The Bitcoin Cash halving 2024 is a pivotal event that presents both opportunities and challenges. For miners, it's a time to evaluate profitability and possibly pivot strategies. For investors and traders, the halving offers potential for price appreciation but requires careful planning and risk management. As the halving approaches, all eyes will be on Bitcoin Cash, anticipating its impact on the broader cryptocurrency market. The 2024 halving could underscore Bitcoin Cash's resilience and innovation, potentially setting the stage for its future growth and adoption.
Further Reading