Bitcoin Cash: Optimistic After the Correction
The drop in Bitcoin prices caused sudden optimism for BCH market positions.
Bitcoin Cash (BCH) still trades below $1,000, quite far from any of the peak prices achieved at the end of last year. BCH is up by 18% in the past day, to $957.58.
But the encouraging marker is that the BCH price has held up well against BTC, of course due to the BTC prices. It is precisely this balance of trading, and not the dollar price, that encourages investors to see more potential for a "flippening".
Of course, no one can predict the markets, but the mood shows that in the case of BCH, despite the price correction, optimism has not run its course.
The Bitcoin Cash mining is also in better shape than ever, with a variety of pools discovering blocks. There are no wild swings in difficulty, as the Bitcoin Cash blockchain is roughly equivalent in profitability to the Bitcoin blockchain.
At the same time, the difficulty of the Bitcoin blockchain continues to rise, to above 21 PH/s. To make a comparison, even acquiring the latest Antminer S9, earnings have dropped significantly in the past month, as the probable reward has fallen by half. So the expected payout of the hard-to-get machine has fallen not only in terms of Bitcoin, but also in dollar value.
Bitmain Switches to Fiat
At the end of last year, the Antminer S9 had a period when sales were only possible for Bitcoin Cash, costing about 3 BCH coins to get the most powerful and efficient machine on the market.
Now, the model retails for both BCH, and a wire transfer of USD.
With the big price fluctuations in Bitcoin, the future of miners may be questionable. Initially, most miners sold out quickly after receiving their rewards. However, some Bitcoin Cash miners have preserved most of the block rewards.
Mining profitability, however, is creating issues, and if BTC prices continue to drop, some miners may have to go offline, affecting the network hash rate.
However, the "blockchain death spiral" of Bitcoin still has not happened, as new mining farms continue to be built and come online.