Regardless of the rising positive market sentiment, the Bitcoin fork still has some serious problems. It seems that Bitcoin Cash (BCH) miners are abandoning the network as the overall Bitcoin Cash hashrate drops by 50%.
On January 30th, during the early morning, BCH’s hashrate went from 5.3 EH/s down to the current 2.8 EH/s. Needless to say, this sudden miners’ dropout caused all kinds of problems for the network.
According to Bitcoin.com, during the mass exodus, not a single block was mined on the blockchain for a full five hours.
Despite the fact that Bitcoin Cash isn’t among the top 20 blockchains by on-chain operations, this stalemate led to the biggest number of unconfirmed transactions since September 2019. And September’s mega-congestion took place because of the stress test on the network. In the time of the latest network congestion, the number reached slightly below 7,000 unconfirmed transactions.
For comparison purposes, on January 10th, the Bitcoin network also suffered a network congestion problem. During that day, the unconfirmed transactions count went a bit above 8,000. However, at the time, BTC had almost 500,000 on-chain operations. This morning, Bitcoin Cash processed, or better said, tried to process only 46,000.
For those who don’t remember, Bitcoin Cash was created, among other reasons, because BTC started to struggle under the overwhelming traffic during the bull run of 2017. Obviously, BCH fails to attract miners, which is vital for Proof-of-Work (PoW) ecosystems like Bitcoin Cash.
Are Miners Really Abandoning Bitcoin Cash (BCH)?
It may be important to note that since January 28th, the Bitcoin hashrate grew by 50 EH/s. This may be one of the reasons for BCH’s loss of miners. It is quite possible that motivated by the positive price trend, miners decided to support the biggest PoW network again.
Nevertheless, it is also vital to explain another crucial fact.
Since the beginning of January, the overall hashrate of the Bitcoin Cash network doubled in comparison with the previous month. Taking that into account, we come to the conclusion that the situation may not be so worrying as it initially seemed.
However, this doesn’t explain the 5-hour-wide gap between blocks this morning. Be that as it may, it looks like developers may have a lot of work on their hands.