BCH scarcity is coming, save as much as you can now

We have always heard about BTC halving and tried to explain its impact on the market. We tried to analyze how the BTC shortage will result in a dramatic rise in BTC's price. Do you know that BCH also got halved once? There will be a shortage of BCH soon with the next halving coming up about a year and 245 days.

It's about time to start gobbling up as many satoshis as you can before the BCH scarcity kicks in.

The BCH halving history

On April 8, two years ago, the Bitcoin Cash network halved its block reward from 630,000 to 328,500 blocks, and from 12.5 BCH per block to 6.25 BCH per block which we currently have. That was the first halving the Bitcoin Cash network has witnessed. The Bitcoin Cash community has much regard for the halving of the coin's block reward because it led to a sharp spike in the price of Bitcoin Cash from that time.

The next BCH halving is expected to happen around April 30, 2024, which is a month away for the Bitcoin Cash network upgrade. This will be an exciting period in the Bitcoin Cash community, and the best we can do is to prepare for it. The Bitcoin Cash halving will lead to a scarcity that could cause a price increase of up to 5x higher than it is at the moment.

How the scarcity could affect the market price of BCH

Currently, the Bitcoin Cash network's total BCH blocks per day stand at 144 blocks with a 6.25 BCH reward per block. This gives a total of 328,500 new BCH coins that can be issued or mined per year before the next halving. With BCH's price on average of $100 per BCH, that's only a total of $32 million.

After the next halving on April 4, 2024, the total BCH blocks per day will be just 72 with 3.125 BCH reward per block. This will give a total of 164.250 BCH per year for another 4 years. If BCH still remains on an average price of $100, that will only be a total of $16 million per year. An amount that only one rich whale could simply gobble up every BCH that could be mined or issued within the 4 years.

The supply scarcity will eventually hit the global market because the BCH mining revenue is distributed across all the participating miners around the world, leading to a price increase for all BCH coins that will be in existence. So if BCH is going to continue with its price increase and mining revenue, a price of $500 per BCH is not out of reach in the 2 years ahead.

What we have seen happened to BTC after halving will likely happen to BCH as well. You need to start doing the math and saving as much BCH as possible before the scarcity hits the market.

There will likely be a supply stock as most people aren't aware of the Bitcoin Cash halving approaching and the effect of this halving on the BCH market. So try to minimize your expenses in BCH and start saving more from now on. The next halving will likely happen about a year and 245 days from now, and it will hit the market sometime in April of 2024.

Bitcoin Cash price will skyrocket and the only real way to take advantage of this is to start now to get your hands on BCH coins before the next halving takes place. Bitcoin Cash's price is already increasing at a fantastic rate. As of this writing, Bitcoin Cash has a 24-hour high of 1.34% while the Bitcoin Cash market cap is at $2.52 billion.

Due to the reasons mentioned above, I strongly recommend that you choose a separate BCH wallet and stick to it for saving purposes. Once the halving happens, you might not even be able to buy the Lambo or the small house you have been dreaming of with your 10 BCH.

Disclaimer

The information in this article is provided for informational purposes only and should not be considered financial advice.The opinions and the strategies mentioned in the article are solely the personal opinions of the author and do not necessarily represent the views of any Crypto entity.