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Bitcoin Cash Halvening In 160 Days May Cause 51% Attack, Warns Kraken BD Director

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  • Yuri Molchan
    📰 News

    Director of Business Development of Kraken, Dan Hedl, warns that the upcoming Bitcoin Cash halving may turn into a catastrophe and cause a 51% attack

Bitcoin Cash Halvening In 160 Days May Cause 51% Attack, Warns Kraken BD Director
Cover image via www.123rf.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Contents

Bitcoin Cash emerged as a result of a Bitcoin hard fork back in 2017. The first BCH halvening is expected in about 160 days from now. The rewards for miners within the network will be cut down in two.

The BD chief of the Kraken crypto exchange warns that this may become a real catastrophe for the Bitcoin Cash chain and even may cause a high risk of 51% attacks.

BCH halving
Image via coingecko.com

BCH halving takes place in 160 days

In his recent tweet, the Director of BD at the Kraken exchange, Dan Hedl, expressed his concern regarding the approaching halvening of the BCH network.

As the block reward gets reduced in half, he writes, miners will lose profit and a lot of them are likely to switch to Bitcoin, since the hashrate algorithm is the same.

This may hit the BCH hashrate and increase a chance of 51% attacks.

Due to the fact that the amount of minted coins drops after a halving, the price of a coin is expected to surge. This is what many hope will happen to Bitcon after another scheduled halvening takes place in May 2020. Bitcoin bulls refer to the halving as one of the biggest triggers of the future BTC price spike.

However, the price of LTC did not rise after the halving in August this year.

Jihan Wu is back as Bitmain’s CEO

Earlier, U.Today reported that the current chief executive Micree Zhan was dismissed from his position and Jihan Wu, the co-founder of Bitmain, is now back as its CEO.

Bitmain owns several large mining pools focused on Bitcoin Cash network. The biggest of them is BTC.com. When Jihan Wu returned as the company’s legal representative and CEO, Bitcoin Cash posted a surge by 10 percent.

 

Do you share Dan Hedl’s concern that the Bitcoin Cash network’s hashrate may diminish after the halving? Leave your view in a comment below!

 

 

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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Crypto Expert Says Bitcoin and Ethereum Are 'Formidable' Collateral Economies

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  • Alex Dovbnya
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    Holding Bitcoin as a collateral is the next big use case for the top cryptocurrency

Crypto Expert Says Bitcoin and Ethereum Are 'Formidable' Collateral Economies
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Contents

According to cryptocurrency influencer Chris Burniske, both Bitcoin and Ethereum already represent formidable collateral economies.

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Moving beyond a medium of exchange

In his earlier tweet, Burniske also predicts that holding Bitcoin as a collateral could eclipse its medium of exchange (MoE) use case.  

He even goes as far as claiming that Bitcoin could morph into an off-chain collateral for the world. 

Burniske states that Ethereum has already created a burgeoning collateral economy around it. Apart from extending its utility beyond a pure MoE, this could also drastically decrease the coin's volatility because of all DeFi use cases.   

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Ethereum (ETH) Price Undergoes Bullish Consolidation, Says Prominent Crypto Trader

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The next big thing in crypto

As reported by U.Today, Genesis Capital, a subsidiary of Digital Currency Group (DCG) that rules the roost in the cryptocurrency lending sector, had a record-breaking third quarter with a whopping $870 mln in new originations. 

In Q3, Bitcoin remained the best collateral for crypto with fiat money and altcoins breathing down its neck. The share of USD loans increased by 25 percent quarter-over-quarter.

However, a group of Wall Street traders made a dire warning about crypto lending, claiming that the breakneck speed of its growth could result in another crypto bubble. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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