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The Impact of Bitcoin Cash Block Reward Halving on Price
Bitcoin Cash, a modified version of Bitcoin that forked from the main blockchain in 2017, recently experienced its latest block reward halving. This event resulted in a rollercoaster ride for the price of Bitcoin Cash, with significant fluctuations before and after the halving.
Price Fluctuations
Leading up to the block reward halving, the price of Bitcoin Cash dropped to as low as $565, only to recover and reach around $676. This represents an 11.3% increase on the day and nearly 20% up from the previous week, according to data from CoinGecko.
At the time of the halving, which occurred at block 840000 at 22:45 UTC on March 4th, the price of Bitcoin Cash stood at $574.90. Just before the event, the price dipped to $565 from a high of $607 earlier that day and a weekly peak of $696 on April 1st.
Bitcoin Cash Halving Details
The block reward halving for Bitcoin Cash occurs approximately every four years, or every 210,000 blocks. In the recent halving, the reward for miners was reduced from 6.25 BCH to 3.125 BCH, marking the second halving since the hard fork from the Bitcoin blockchain.
Prior to the halving, the price of BCH surged to its highest level since November 2021, reaching $718.62. Notably, the all-time high for Bitcoin Cash was $3,785.82, set back in December 2017.
Bitcoin Cash vs. Bitcoin
Bitcoin Cash shares many similarities with Bitcoin, including the use of the proof-of-work consensus mechanism and a capped supply of 21 million coins. The cryptocurrency was created to offer lower fees and faster transaction times by allowing more transactions in each block.
In 2018, Bitcoin Cash underwent a fork, leading to the creation of Bitcoin Cash ABC (later rebranded as eCash) and Bitcoin Cash SV (Satoshi Vision) as separate entities on its blockchain.
Future Outlook
As Bitcoin Cash navigates the impact of its block reward halving, the broader cryptocurrency market continues to monitor the upcoming halving event for Bitcoin itself. Analysts hold differing opinions on how this will affect Bitcoin’s price, with some predicting significant gains while others urge caution.
While historical data can provide insights, it is important to remember that past performance does not guarantee future results. Crypto exchange Coinbase warns investors to consider all factors before making decisions based on halving events.
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