Original - Odaily
Author-Kate
Today, less than 2 days before the BCH halving, Bitcoin Cash (BCH) once again exerts force. According to OKX data, the BCH price once exceeded 702 USDT, with a 24-hour increase of 15.3%. In the past two days, March 2 and 3, BCH had already fought a turnaround. The price exceeded 528 USDT in two days, with a 48 H increase of 58.5%.
After this BCH halving, the block reward will change from 6.25 BCH to 3.125 BCH, and the BCH price has reached its highest value since the low in 2012.
The birth and controversy of BCH
Going back to 2017, in order to solve the XX problem of Bitcoin, with the support of Bitmains large amount of computing power, the first fork in the history of Bitcoin occurred, and Bitcoin Cash (BCH) was born. ).At its peak, BCH’s market capitalization once entered the top four.In December 2017, the BCH/BTC exchange rate reached an all-time high of 0.284 (now 0.01) and has not been able to reach that level since.
In 2018, one year after the birth of BCH, an Australian called CSW (Craig Wright, nicknamed Satoshi Nakamoto) began to fork BCH. Since then, Jihan Wu and CSW quickly started a protracted war of words. The two sides even exchanged dirty words. Although the final incident ended with Wu Jihan winning,However, after BCH experienced a fork, the price plummeted from $552 to $74, a loss of 83%., even taking into account the BSV generated after the fork, investors still suffered heavy losses.
Then BCH experienced another fork, and a new round of competition for the naming rights of BCH started again. In the final result, BCHN, which had an advantage in public opinion and support, won and obtained the naming rights of BCH. Although Wu Jihans gold medal team ABCs backstabbing led to a split in the community, Wu Jihan was deeply involved in the palace battles in the Bitcoin mainland at this time and had no intention of managing BCH.
Starting in 2019, the long-standing conflicts between Jihan Wu and Ketuan Zhan, another founder of Bitmain, became public. After several months, an agreement was finally reached in January 2021. Wu Jihan officially resigned from Bitmain. Bitmain will divest the mining pool and cloud mining business, that is, Bit Deer will be divested from Bitmain together with the mining farms in the United States and Norway. Wu Jihan serves as the chairman of BitDeer.
At this point, BCH began to decline, and BCH developers once tried to embrace DeFi, but it did not cause much splash.
Why is the halving time of BCH different from that of BTC?
BCHs halving mechanism is consistent with Bitcoin, but BCH has modified Bitcoins difficulty adjustment algorithm to dynamically adjust the difficulty more quickly to stabilize the block time. This difference in algorithm leads to the difference in halving time between BCH and BTC. The first two halvings of BCH occurred exactly the same time as the Bitcoin main network, and the third halving occurred about a month earlier than the Bitcoin main network.
Historical Quotes
On April 8, 2020, BCH completed its first production reduction, and the block reward changed from 12.5 BCH to 6.25 BCH. The price climbed slightly after the halving, and since then the price has remained around $250 without any significant increase in long-term practice.
In terms of miner holdings, IntoTheBlock data shows that as of April 26, 2023, the total balance of BCH held by BCH miners was 9.2 million.But as of March 2024, these balances have dwindled to just 6.65 million BCH.Last year, miners sold 2.51 million BCH worth approximately $1.1 billion, accounting for nearly 30% of holdings.
This trend is expected to intensify as more miners look to profit from high prices ahead of the reward reduction. However, historical data suggests that this trend may reverse after the halving.In April 2020, shortly after the halving, miners began accumulating reserves again.As rewards dwindle, unprofitable miners may exit the Bitcoin Cash network. This reduces mining difficulty and dynamically increases mining income for those who can afford to stick with the game.
The long-short ratio of BCH
As of the date of publication, according toCoinglass data, under the trend of increasing prices, the proportion of long positions on that day is still slightly larger than that of short positions. The long-short ratio of BCH is:
Currency holdings
according toNon-small data, the top 10% of BCH’s largest holdings accounted for 17.2%, and the top 100 accounted for 34.94%.
The top 10 addresses are as follows:
Ecological trends
At present, the diversity of BCH ecological development is still relatively limited, and project parties are focusing more on its computing power and payment characteristics. At the end of last year, the BCH Ecological Fund invested US$5 million in Smart Chain for strategic cooperation to create a global distributed supercomputing public chain ecosystem and amplify the value of computing power resources.
On March 21 this year, Coinbase Derivatives, a derivatives trading platform owned by Coinbase, announced that it would launch the first batch of BCH leveraged futures contracts regulated by the U.S. Commodity Futures Trading Commission (CFTC) in April.
Technology upgrade
according togitlab.comAccording to the details on BCH, BCH will usher in the next upgrade on May 15 this year. This upgrade is expected to be implementedCHIP 2023-04 Adaptive Blocksize Limit Algorithm. To reduce social attacks on BCH and save costs for all network participants, developers propose automatically adjusting the block size limit after each block based on the exponentially weighted moving average size of the previous block.
