The Bitcoin Halving Approaches
In anticipation of the Bitcoin halving event that is due on May 12th, some in the cryptoasset community have been looking to the Bitcoin Cash and Bitcoin SV networks for forewarning as to what might occur to the Bitcoin network after its halving. Last week, Bitcoin Cash and Bitcoin SV experienced their halving events with both networks suffering from substantial hash rate reductions in the days following. Bitcoin Cash experienced its halving on April 8 at 12:20 UTC while Bitcoin SV ‘halved’ at 00:50 UTC on April 10. Data from both networks shows a precipitous drop-off in hash rate with both networks falling from over 3,500 PH/s before their respective events to around 1,000 PH/s as of Friday.
Meanwhile, Bitcoin’s hash rate stands at just below 100,000 PH/s and has been relatively steady over recent months. All three networks share the same monetary policy, leading to some looking at the Bitcoin forks for insights as to how Bitcoin might react after its halving event. The Bitcoin halving is one of the largest themes in the cryptoasset industry in 2020, with supply-based valuation models such as the Stock-to-Flow thesis predicting significant price appreciation for the BTC token and Bitcoin network value after the event. Surveys have shown that many institutional investors are unaware of the network event, leading to some analysts predicting that the event is not priced-in and that the subsequent 50% reduction in daily BTC issuance will be a bullish price-factor for much of the remainder of the year, while also subsequently leading to greater hash power and network security.