First Mover A Sneak Preview of Bitcoins Halving in Real -

Post Top Ad

First Mover A Sneak Preview of Bitcoins Halving in Real || Bitcoin

First Mover A Sneak Preview of Bitcoins Halving in Real || Bitcoin

Preview of Bitcoin's Halving.

The loss of hash power on the smaller blockchains might make them more vulnerable to a takeover by a malicious actor in what's known as a 51 percent attack. That's when an individual or cabal amasses sufficient computing resources to co-opt the network – similar to the way a corporate raider might try to buy enough equity in a company to force a takeover.

SHA-256 coins comparison

If the security of the Bitcoin Cash network fell by half, an attack would require the computing equivalent of about 400 megawatts of electricity – roughly the output of a medium-sized power plant. By contrast, it would take 6,000 to 10,000 megawatts to attack the Bitcoin blockchain, he says.

Bitcoin cash's halving "will hurt the overall hash rate/security of an already vulnerable blockchain." 

Bitcoin cash's halving
What happens in cryptocurrency markets, as a result of this week's halvings, is a bit more speculative. Prices for bitcoin cash and bitcoin S.V. might fall because holders of those digital tokens might suddenly start worrying about the vulnerability.

While the hash power shift would bolster security on the bitcoin blockchain, miners there would suddenly face more competition – resulting in a dilution of profits.

It will be difficult to draw too many parallels between this week's episodes and bitcoin's halving in May. That's partly because so much of the crypto industry has evolved around bitcoin, and there's such a huge community of traders, developers, and marketers who are focused on making it successful. In digital-asset markets, bitcoin is the bellwether, and lesser coins like bitcoin cash and bitcoin S.V. are often merely trading in sync.

Litecoin (LTC), yet another spinoff from bitcoin, provided a cautionary tale when it underwent a halving in August of last year. While the price quadrupled in the first half of 2019, it peaked a couple of months before the halving and tumbled over the rest of the year.

Suffice to say the digital-asset industry is still so new compared with traditional finance that nobody's confident how the various halvings will play out. Many bitcoiners have a remarkably sophisticated grasp on old-finance concepts like the theory of efficient markets. Even within the cryptocurrency industry, there are wide-ranging opinions on whether the halving – an event that's known years in advance – is already baked into the price.
"Halvings are not unilaterally positive events for cryptocurrencies. "Maybe Bitcoin is different, but maybe it's not."
This week's halvings on the Bitcoin Cash and Bitcoin S.V. blockchains will provide additional data points – ahead of next month's featured event.


BitcoinFirst Mover A Sneak Preview of Bitcoins Halving in Real

Trend: Bitcoin is holding ground, but struggling to take out the 50-day average for the second day running. The cryptocurrency is trading near $7,334, representing a 1.6 percent gain on the day, having tested the 50-day M.A. at $7,422 during the early European trading hours.
A look at the four-hour chart shows the cryptocurrency has failed three times in the last 24 hours or so to keep gains above the psychological resistance of $7,400.

The repeated bull failure, coupled with the four-hour chart MACD's bearish cross below zero indicates scope for a drop to ascending trendline support near $7,000. The risk-off tone in the global equity markets also favors a pullback in bitcoin.

Major European indices like Germany's DAX and U.K.'s FTSE are reporting around 1 percent drops. The cryptocurrency has closely tracked action in the equity markets over the past few weeks. On the higher side, a sustained move above $7,400 would open the doors to $8,000.

No comments:

Post a comment

Hope You Enjoyed & Learned Something 😊😊

Post Bottom Ad