The world’s fifth-largest cryptocurrency system by market capitalization reached block height 630,000 at roughly 12:20 UTC on Wednesday — by layout tripping the so-called”halving” occasion that decreased the system’s mining reward from 12.5 bitcoin money (BCH) per block to 6.25.
That means miners competing for block rewards on the network will see their immediate mining revenue reduced by half, resulting in no or minor returns notwithstanding investments in costly mining gear.
The mining difficulty and hash speed on Bitcoin Cash — a measure of how much miner power is participating on the system — has been on a downward trend in the run-up to the halving, falling from approximately five exahashes per minute (EH/s) at mid-February to 3.3 EH/snow.
At press time, BCH is changing hands at $268, based on CoinDesk’s cost indicator, a 2.7 percent leap over the last 24 hours.
According to data from F2Pool, in BCH’s current price and the network’s newest hash rate, a vast selection of the mining equipment that has been launched in 2018 and classical 2019 are now generating negative daily gains, if supposing an average electricity price of $0.05 each kilowatt-hour (kWh).
Some of the latest models that hit the market late last year and in early 2020 are visiting gross margin fall to approximately 10 percent. Only those most potent versions, such as MicroBT’s WhatsMiner M30S or Bitmain’s AntMiner S19 or S17 Pro, would be able to generate a margin above 30 percent. However, the manufacturers still have not been able to deliver those models into the market in large numbers.
That said, as more unprofitable miners unplug in the Bitcoin Cash system as is expected, the mining problem will further decrease, proactively raising the mining earnings for people who can afford to stick to the match.
Additionally, technical mining devices (commonly known as ASIC miners) dependent on the SHA-256 algorithm — Bitcoin embraces that, Bitcoin Cash, and Bitcoin SV — have been able to switch between different networks using the same algorithm.
The Bitcoin Cash occasion portends that the halving scheduled for the Bitcoin network in roughly 35 days. Bitcoin is 26 times larger than BCH in terms of market capitalization.
Meanwhile, Bitcoin SV, the system that forked off the Bitcoin Cash blockchain in overdue 2018, is also scheduled to go through a block reward reduction in roughly a day. The cost of BSV has jumped by 9 percent to $209 over the past 24 hours before the event.