Born in 2017, bitcoin cash gained 40% last week, doing much better than bitcoin.
It’s not just bitcoin that has been soaring since the start of the year. Its little brother, bitcoin cash, is performing well in the perspective of “halving” (read our ‘ALL TO UNDERSTAND’ on bitcoin halving). Bitcoin cash is a cryptocurrency resulting from the fork (a separation into two distinct branches) of the Bitcoin blockchain in 2017. Today, it is in 14th position among the most capitalized cryptocurrencies on the market, weighing 11 billion dollars.
This cryptocurrency “was one of the other best performing stocks last week, with a 40% increase, probably in anticipation of the halving of its own block reward”, underlines Simon Peters, market analyst at Etoro. This is better than bitcoin which lost 8% over a week and is trading below $66,000 this Tuesday.
Rewards halved
The next bitcoin halving will take place around April 19, 2024. This event explains, in part, the current surge in the price of the cryptocurrency. It takes place approximately every four years and more precisely every 210,000 blocks validated on the Bitcoin blockchain. This is a halving of the number of bitcoins issued to the market as rewards to miners (who validate transactions on the blockchain).
In April 2024, the number of bitcoins distributed to each miner will increase from 6.25 to 3.125 bitcoins. In total, the number of bitcoins issued will increase from 900 bitcoins to 450 bitcoins each day after the halving of 2024. This event will not only concern bitcoin: in the same way as on the Bitcoin blockchain, the block reward on the Bitcoin Cash blockchain will go from 6.25 bitcoin cash to 3.125 bitcoin cash.
Source: https://www.bfmtv.com/crypto/bitcoin/le-bitcoin-cash-s-envole-dans-la-perspective-du-halving_AV-202404020569.html
