Bitcoin Cash on the precipice – shows BCH fundamental weaknesses

The Bitcoin Halving is now already two weeks behind us, and we are already starting to feel some fundamental changes. By the halving of the Block Rewards, it came out in the last couple of weeks to a strong Bitcoin hash rate burglary. This in turn has led to longer block times and increased transaction fees, which should return to normal but at the next Difficulty adjustment again. But what about the BTC Fork of 2017 – Bitcoin Cash?

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Bitcoin Cash after the Bitcoin Halving

Bitcoin Cash has already been demonstrated in front of the Bitcoin Halving of his weak side. This was mainly due to the fact that the Bitcoin Cash Halving has taken place several weeks before the Bitcoin Halving. Accordingly, the Block Rewards were reduced earlier from 12.5 to 6.25. As a result, some miners are changed to BTC to do there, even among the higher Block Rewards of your work.But as it stands now, Bitcoin Cash after the Block Rewards have both crypto-currencies adjusted? Switched lots of BTC miners back to Bitcoin Cash? An Analyst on Twitter has published a short analysis of the BCH project, from the fundamental side, strong doubts.

Analyst settles with Bitcoin Cash

Yassine Elmandjra, a crypto-analyst at ARK investment, rated recently some of the basics of Bitcoin Cash, and noted that since the halving of the 8. April have deteriorated. Elmandjra says that the BCH network “looks healthy”, particularly due to some of the fundamentals, which have deteriorated.The Bitcoin Cash Miner have jumped ship a few days before the actual BCH Halving. Only as the Bitcoin Halving has taken place and, therefore, the Block Rewards are adjusted, came back, some Miner and the Hashrate jumped at BCH briefly upwards. But it passed, nevertheless, less Bitcoin Cash than you would have expected. Both of these behaviors we can see in the following Chart:Add to that the Bitcoin Cash Blockchain is already occupied for many months of Bitcoin miners. The consequence of this is that the honest BCH are Miner often empty and therefore, for your work will not be paid. The long term can have serious consequences. But more on that later.Bitcoin savings plan: there’s Always the question after a good Investment is made strategy for BTC. With the help of the Cost Average effect and minimize you to sleep your risk, can better and benefit long term from the long-term development of BTC and co. – it’s that Simple! As a Bitcoin savings plan works.

Inadequate security and poor terms and conditions for the Miner

Secondly, Elmandjra argued that the economic is stand by set in the BCH network at a historic low. The number of transactions in the network has decreased from 90,000 to 56,000, while the average transfer value is decreased according to the data of Coin Metrics to about 60%. This amazing reduction of the economic throughput has led to lower revenue for the Miner.Currently, the transaction charges account for only 0.05% of Miner revenue. For comparison: in the case of BTC miners transaction fees of approximately 10% of their income. This is for the long-term security of the network very important. Because at some point there will be no or only very low Block Rewards.One of the most disturbing aspects in the Bitcoin for Cash network, the security is good. Due to the lower hash rate, the BCH network is more vulnerable to attacks. Mainly because it currently accounts for only about 2.9% of the total SHA-256 Hashrate. Bitcoin, by contrast, approximately 95% of the total Hashrate. Elmandjra pointed out, that evil Miner could easily launch a 51% attack on the network. The cost for a malicious attack on Bitcoin Cash are currently at about $ 10,000 per hour. He even stated that he was “surprised that we still have not seen a major attack”.

Impact on the Bitcoin Cash course

Of course, the question of how the price will impact on these weak Fundamentals at this point, one or the other. In the past, we have seen that even the relatively bad news from the fundamental side have had little to no impact on the Bitcoin Cash exchange. However, it does not mean that it must remain.When it comes to an example of a successful 51% attack, then the trust in the network, which is out of date anyway so high is completely gone. Thus, many investors would sell their BCH as fast as possible on the market. This would lead to an extreme price slump. A healthy demand would be eliminated therefore. In the long term, the Bitcoin Cash rate would run well against 0.The scary thing is that it can theoretically happen at any time. The only safety to provide additional revenue for the Miner, the yields of the BCH Blockchain. As long as the money can be earned, we want to perform any attack. This Motivation is not simply enough. As soon as, but no more income with Bitcoin Cash generate, paid to the network will probably not even notice it anymore.Bitcoin Cash will be with such Fundamentals as a means of payment never prevail. For decentralized money, we need the highest level of security we can get, and this provides us with currently only Bitcoin. If so, the fundamentals should improve in the coming months and years, then, this cryptocurrency will suffer a slow death.5 reasons why you invest in Bitcoin should: again and again we hear the same statements to BTC. Soon, he could be prohibited, the Central banks make it unnecessary and you could buy it anyway, none of that. We take care of the most common fairy tales and show you 5 reasons why you should invest in BTC. Why should you be in Bitcoin investing.Is Bitcoin Cash despite the weak Fundamentals of survival?You look better Videos to read the article? Then look at our Youtube Channel over. Subscribe to our News channel to not miss any News. (Image source: Shutterstock)The versions in this article, no trade recommendations or investment advice.

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