HALVING OCCURRING NOW - Bitcoin Cash and Bitcoin SV's Impact on the Bitcoin Network. Is it a precedent for Bitcoin Halving 2020?

We have been receiving several questions about what will happen with the Bitcoin Cash (BCH) and Bitcoin SV (BSV) halving this week & whether these are precedents for the Bitcoin Quantitative Hardening. Below are Blockware Solutions expectations:

Several Miners run software to toggle between SHA-256 Protocols based on whichever is most profitable at the moment. This is simply arbitraging protocols to maximize profits which tightens the spread in revenue between each protocol. 

As the revenue of BCH & BSV get cut in half, these miners that toggle back and forth will switch over to mining BTC. We expect a slight uptick in Bitcoin Difficulty. If every miner on the BCH & BSV Network switched over to Bitcoin it would increase Difficulty on the Bitcoin Network by 5.2%. BCH and BSV have their evangelists so we do not expect a material impact. We expect the result to be a future Difficulty increase of 1%-2.5% for Bitcoin attributed to BCH and BSV Miners switching over.

Some market participants have had negative sentiment towards Bitcoin Pre and Post Halving 2020 as Litecoin withered away after it’s 2019 Halving and BCH/BSV Halvings have been uneventful. LTC, BCH, and BSV Halvings are NOT applicable precedents for the Bitcoin Halving.

Here is why: Price is determined by Supply AND Demand! Not just supply side economics. This is why LTC, BCH, and BSV are not appropriate precedents for Bitcoin Quantitative Hardening. Bitcoin has the most robust ecosystem in the Blockchain Industry and the fundamentals continuously improve due to the Global Macro - improving sentiment and accelerating DEMAND. 

Litecoin does not have Demand. Bitcoin Cash and Bitcoin SV likely will not have a true, sustainable (unmanipulated) Demand. They do not have ecosystems nor are markets pricing them in as future effective stores of value. Therefore, we do not view these events as a precedent for what is to come for Bitcoin Quantitative Hardening.    

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