@arslankhalid 6 February 2020

As halving approaches, how will BCH behave?

In April 2020, the BCH block reward will be halved first, but it is only two months before. The BTC block reward is expected to be halved in May, becoming the most concerned issue for BCH users and BTC users at this stage. Some people believe that this could lead to a significant decline in miners' income, while others believe that prices will rise rapidly to make up for the impact of reduced block rewards. **Why is the block reward halved?** Every time a new block is generated, the miner mining that block will get a certain amount of Bitcoin rewards. But every 210,000 blocks in the Bitcoin network, the system will automatically halve the number of block rewards, so it is called halving. The mechanism was created by Satoshi Nakamoto to set a supply cap to make Bitcoin more scarce, as the total number will not exceed 21 million. In contrast to the fact that most fiat currencies will depreciate over time due to inflation, the halving model is the opposite, which puts upward pressure on prices. The first halving took place in 2012, when the block reward was halved from the initial setting of 50 to 25. The second and so far the last halving occurred in 2016, and the block reward decreased from 25 to only 12.5, and it has remained so far. It is expected that the upcoming BCH halving will be in April 2020. After this happens, BCH miners will lose half of the current block reward (12.5BCH), and miners will only get 6.25 BCH and transaction fees per block. BTC is expected to halve after May 2020. **Investment enthusiasm** In fact, one month before BCH performed quite well and basically achieved the industry's leading gain. Before that, in fact, the entire industry has experienced a two-year bear market. The two-year reshuffle has given the market a new round of upward opportunities. **Miner angle** A halving could lead to skyrocketing prices, which could even skyrocket several times. Only in this way can miners continue to profit and continue to invest in computing power. Hyperblock CEO Sean Walsh commented: "If you look at the first 6 and last 6 months of the first two halvings, you will see a sharp rise in the price of Bitcoin. As a miner, (Half) means that revenue will be halved overnight, which is a bit scary, but the price increase is more than enough to make up for our losses. " In fact, if observed in the past, each halving triggered a bull market. In simple terms, it is "things that are scarce are expensive," and prices are skyrocketing. Only in this way can we continue to attract computing power and continue to invest in the BCH network. If the growth rate is high enough, the computing power and miners of the BCH network will not only decrease, but will also attract more computing power to join the BCH network. And because BCH is halved first, it is the first digital currency to enter the price dividend period, and it may even absorb the computing power of BTC. Profit-seeking miners may switch computing power to the BCH network because of profitability. **Half market** Some people say that the halving market has already started. BCH has been rising for nearly a month, which has doubled from the previous year's low. Investors' enthusiasm is gradually fermenting, and miners are confident. The resulting halving market may become the biggest market turning point since January 2018. After halving for a long time, the fee is the ultimate way for miners Some people think that after halving, the block reward will be less and less, and eventually BCH will no longer have miners to operate the network. In fact, block rewards are just the initial benefits for miners. The long-term and rising income of miners is still the source of income for fees. Over time, all BCHs will be mined. At that time, there will no longer be a block reward for each newly produced block. In fact, 20 years after its birth, block rewards have been basically negligible. What about miners? Obviously, miners need sufficient income to maintain mining costs. Without block rewards, miners have only one method left. In fact, this is also the original prediction of Satoshi Nakamoto, who predicted that "Bitcoin will die or generate a large number of transactions within 20 years." Only a sufficiently large transaction volume can sustain the mining costs of miners. From this perspective, all POW currencies are assumed to be able to produce blocks normally, but after many halvings, most cottage POW coins will face a death crisis. Block rewards, the largest source of income, are no longer available However, the development itself is not enough. Without attracting sufficient transaction volume, eventually miners will leave these insufficiently powerful POW currencies. This is the fundamental reason why **BCH** is committed to making the **best money** in the **world**. BCH can rely on outstanding payment attributes and transaction functions to attract users to use it. Judging from the current payment capacity of BCH, BCH's activities on the chain have been rising.