Since the Bitcoin Cash (BCH) halving was completed yesterday, the network hash rate has reduced drastically, and it is now performing more slowly than Bitcoin (BTC).
BCH mining no longer profitable
The halving which saw miners reward for confirming a single block dropped from 12.5 BCH ($3,225.79) to a 6.25 BCH ($1,612.89) has indirectly hindered miners’ motivation from confirming more blocks as miners now see BCH mining as an unprofitable investment.
Before this time, BCH proponents and investors like Roger Ver, the CEO founder of Bitcoin.com, had believed that the cryptocurrency is a better investment plan to Bitcoin and will outperform the king coin within the next few years.
Ver is all in on BCH because he believes that the Bitcoin Cash network is fast, secure, and cost-negligible, with his emphasis on the speed it takes to confirm transactions.
However, this theory has now become a mirage as the BCH network is far slower than expected as a result of the recent halving event.
According to a tweet today from Alistair Milne, investor and Altana Digital Currency Fund CIO, the Bitcoin Cash network is now 83% slower than it was yesterday as miners could only confirm just four blocks in three hours.
This indicates that one block now takes approximately 45 minutes to be mined, which is in sharp contrast from the intent of the network – to provide instant payments and settlements.
BCH network vulnerable to attack
The current problem with Bitcoin Cash is not just the slow performance of its network, but the withdrawal of miners now makes the network extremely vulnerable to a 51% attack.
As of yesterday, the one hour cost for a 51 percent attack on Bitcoin Cash was three times higher, but at the time of writing, the cost has dropped to $4,937.
The end of Bitcoin Cash?
The news of the Bitcoin Cash network underperformance has sparked several reactions from the cryptocurrency community as many believed the crypto had died a natural death, and there is no coming back from this.
A Twitter user identified as Mia Tam tweeted a picture of a cemetery with an inscription on a tombstone showing “Bitcoin Cash 2017 – 2020,” and other users tweeted in agreement.
Bitcoin Cash… thank you for everything ❤️
— Mia Tam (@blockandchain) April 9, 2020
Many have started speculating that something similar might happen to Bitcoin when it completes its halving next month. BTC mining reward is expected to reduce from 12.5BTC ($90,996.39) to 6.25 BTC ($45,489.61).