Bitcoin Cash Halved: Bitcoin Is Up Next

The much anticipated Bitcoin halving is coming up. As we get closer, many are speculating on what it will do to the price going forward.

Halving is where the rewards per block are reduced by 50%.

Bitcoin Cash went through its halving and the price is holding fairly steady. In other words, it was a non-event.

What does this tell us about Bitcoin? Most likely nothing.

Bitcoin Cash is nowhere near as popular as its big brother. Bitcoin is the "face" of cryptocurrency, a token that is watched more than any other.

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Many are speculating that the halving could be very bullish for Bitcoin. After all, it is a reduction of the inflation rate, meaning there are less tokens produced.

Will this equate to higher prices?

There are many variables to consider. The first is do we see a drop in mining after the halving? With Litecoin, since the reward was less, many miners shut down their mining gear. This reduced the hashrate a great deal.

If there is a drop in price, the reward per block could make it not cost effective to keep mining. A reduction in the mining pool could compensate for that since there are more blocks that a pool could "win".

Of course, with BCash halving today, many of those miners could jump to Bitcoin. At $7,000+ per token, it is likely that miners are operating at a profit right now.

There is an added piece to this puzzle. The cryptocurrency market suffered from a sell-off along with other markets as the coronavirus spread. Investors around the world fled to cash.

This could reverse a bit if economies suffer and investors question what markets will do. The effectiveness of central banks and governments will be on display. They cannot be counted on to get things right so we might see a shift of portfolios to Bitcoin.

The next couple months will be very interesting. The halving could be a turning point for Bitcoin.

Or maybe it won't be.