Bitcoin Cash (BCH) Mining Too Weak to be Sustainable
Bitcoin Cash uses the SHA-256 hashing function to boost its claims to being the real Bitcoin, but only reached a fraction of the BTC hashrate.
When Bitcoin Cash (BCH) split off from Bitcoin in August 2017, it inherited the SHA-256 hashing function. At one point, the two networks looked competitive enough, and miners flowed in from one network to the other.
But BCH, with its current hashrate close to 2 EH/s, is no match for Bitcoin’s network, which according to some reports reached 120 EH/s. This also means that there are enough mining rigs available to completely wipe out the credibility of BCH.
The same applies to Bitcoin SV (BSV), where the hashrate is even lower, around 1.2 EH/s.
So far, the two networks coexist well enough. But they also show that unless mining is highly active, networks are quite insecure. For now, BTC miners don’t seem interested in double-spending, or hurting exchanges, and act as fair miners supporting the network.
One of the problems with the Bitcoin Cash network now is that most blocks are produced by an unknown entity, or a group of miners. CoinDance lists those entities as “other mining pools”, and it is unknown if they are multiple miners, or one unknown entity.
The other problem is that the emergency difficulty adjustment of Bitcoin Cash is not working well enough, producing either too fast or too slow blocks. This may be troublesome for those relying on timely transactions.
After the latest rally, BCH rose to $273.91, adding more than 19.5% since last week. But BCH also never recovered its $400 prices from before the November 2015 hash wars with Bitcoin SV, and the subsequent switch in tickers.
BCH remains one of the more liquid assets, receiving around $443 million’s equivalent in Tether (USDT) each day. The coin is almost separate from BTC, with $156 million inflows from the BTC market.
The past year has seen no high-profile hard forks of BTC, and for now, the existing ones are busy fighting for adoption and building a community, instead of attacking BTC directly.