Two reasons to sell Bitcoin Cash despite its almost Bitcoin hash parity
Bitcoin Cash is quickly approaching Bitcoin in hashing power. Despite it, it’s time to sell and here is why:

The much better mining profitability attracts miners to Bitcoin Cash in swarms. It’s hashing power is rising and dangerously approaching Bitcoin hashing power parity.
As of now Bitcoin Cash is mining with 42% of all SHA-256 hashing power, compared to Bitcoin’s 58% and it’s still rising. The ratio of 72% is never been so high in favor of Bitcoin Cash.
But the low mining difficulty of Bitcoin Cash has it’s caveat. And it is that, with 72% of Bitcoin’s hashing power, it’s mining speed is also very high — almost 10 times as high as that of Bitcoin. High mining speed means that the interval between the difficulty adjustment is also much shorter, instead of the regular 14 days, it is now gone down to 3 days for Bitcoin Cash. All this I have forecasted in my previous article several days ago.
The next difficulty adjustment for Bitcoin Cash will take place today in just a few hours with the block 481824. Depending on the speed of the network, it will be probably between 7pm and 9pm UTC. And the difficulty will be adjusted upwards by 400%. Meaning that the relative difficulty will rise from 7.38% to 29.56% of Bitcoin’s difficulty.
Result: It means, that after that mining Cash will only be more profitable that Bitcoin if the price of Bitcoin Cash is above 0.2956BTC. Right now, its price is around 0.175BTC and falling, so it’s not very probably it manages to rise by 70% to almost 0.3BTC in 5–7 hours.
And there are two main reasons why it won’t happen:
- The miners will start moving away from mining Cash actually BEFORE the difficulty adjustment. The reason is because their mining fees are locked for 100 blocks. So only the rewards of the blocks mined before block 481724 have the chance to be sold before the difficulty adjustment. And if the price at block 481724 (roughly 2 hours before the difficulty adjustment) isn’t around 0.3BTC, they will start moving back to mining Bitcoin and what is more important: start selling off their coins as there is no hope for additional epoch of profitable Cash mining. This will send the prices downwards. Miners, knowing of the 100 blocks margin, will surely start selling off even before that time if there is no hope for the price to rise to 0.3BTC.
- Another reason is that the profitability threshold of 0.2956BTC is almost overlapping with a psychological resistance level of 0.3BTC certainly eyed by many market participants. It will be very difficult for Cash to break through that resistance level. It would probably need several attempts to do that and there is just not enough time for that, so that as soon as the price approaches this region, huge sell orders will be released, which will send the price down and then through the chain reaction above even harder down.
Due to the above reasons I am expecting a huge sell off and I expect Bitcoin Cash to become a victim of it’s own success.
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