Why Miners Are Still Mining Bitcoin Cash

Over time the processing power required to mine a block of Bitcoin increases. When the Bitcoin fork happened we were left with two currencies – Bitcoin and Bitcoin Cash, both with the same mining difficulty. But the price of Bitcoin Cash has cratered. Why then would anyone invest in mining Bitcoin Cash when, for the same processing power, they could mine the much more valuable Bitcoin?

It’s because the creators of Bitcoin Cash foresaw this problem wrote Jimmy Song. They put in a failsafe mechanism that decreased the difficulty of mining blocks by 20% if fewer than six blocks were found in a 12 hour period. Since the fork happened, the difficulty of mining Bitcoin Cash has fallen and ultimately the market should reach an equilibrium with no cost difference between mining Bitcoin and Bitcoin Cash. At that point speculative forces will take over and miners will flock to the currency with the most upside potential.

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