Bitcoin Cache is one of the bitcoin hard forks. Hard fork is a form of branching and updating. In the days of digital currency, Bitcoin has overtaken Halving. In this article, we will examine the effects of this process on the digital currency of Bitcoin Cache.
Why was the Bitcoin Cash Currency Digital Created?
One of the problems that has always plagued the world’s most popular digital currency, Bitcoin, is the issue of scalability. Lack of scalability allowed Bitcoin to be used for day-to-day transactions. And that’s because no one is willing to wait for hours to confirm a transaction to buy a coffee. It is also unwise to increase the fee for faster approval of small purchases. Eventually, Bitcoin Cash entered the field to solve these problems.
Bitcoin cache features
Cache in English means cash. Bitcoin Cache is actually a bitcoin that can be used as cash because of the high speed of its transactions. The Bitcoin Cash Currency Digital was born on August 1, 2017. On November 15, 2018, Bitcoin Cash, which was the fourth most valuable digital currency market, became two competing versions, namely Bitcoin Cache ABC and Bitcoin SV. The Bitcoin Currency Cash Blockchain has its own blockchain. Its consensus algorithm is the same as proof of work or mining.
Bitcoin Cache Extraction
The time it takes to create a new block on the Bitcoin Cache network, like Bitcoin, depends on the difficulty of extraction. Bitcoin cache blocks are eight times the size of bitcoins. This also increases the complexity of extraction and costs. The amount of extraction per block in the bitcoin cache network is similar to bitcoin. But we know that the value of bitcoin is much higher.
During the Halving in April of this year, the reward for extracting digital bitcoin cash from 12.5 units per block reached 6.25 units. Accordingly, the reward for extractors that determine network security was halved. It is expected that small miners, who have paid a lot of money for mining equipment, will not be able to survive and get out of this situation. Taking into account the current price of bitcoin cache as well as the rate of electricity consumption, it can be said that even new extraction devices are harmful in this situation.
hash power shift
after halving , bitcoin cache digital currency migrants migrated to the bitcoin network to make more profit.because was still little chance of receiving a 12.5 until reward.this has increased the difficulty of extracting bitcoins and reduce the profits of miners.this also affects the secarity of the bitcoin network ofter the miners migrated to the bitcoin network %51 attacks on the network have become easier.