On April 8th, at 20:19, Bitcoin Cash (BCH) underwent its first-ever halving event, marking a significant milestone for the cryptocurrency community. As the closest relative to Bitcoin (BTC) in the crypto space, BCH’s halving offered a preview of what might unfold during Bitcoin’s own halving events. Many observers looked to this event for clues about whether reduced mining rewards would inevitably drive price increases and whether BCH’s halving could inject momentum into a sluggish market.
Data from the event confirmed several anticipated effects: the price of BCH rose from $251 to a peak of around $280 on April 8th—an increase of 11.55%—and maintained a 4.2% gain over the following day. Additionally, hashing power migration was observed, with Antpool, BCH’s largest mining pool, experiencing a 35% drop in hashrate. Reports indicated that miners shifted their resources to the Bitcoin network, boosting BTC’s computational power.
Amid these developments, Jihan Wu, a pivotal figure in the BCH community, participated in a global live stream on the night of the halving. He shared his perspectives on the halving, DeFi, the COVID-19 pandemic, and reaffirmed BCH’s mission to become electronic cash. Below is a summary of his key insights.
Jihan Wu’s Perspective on the BCH Halving
Jihan Wu expressed excitement about BCH’s inaugural halving, describing it as a major milestone. He emphasized that BCH has weathered various challenges and continues to operate robustly despite earlier concerns about its stability. Wu reiterated the community’s commitment to creating a global electronic cash system, highlighting the strength and passion of the BCH community.
He pointed to steady progress in scaling solutions, with annual improvements in transactions per second (TPS) and reliable underlying technology. The BCH ecosystem, according to Wu, hosts numerous high-quality services and projects—including games, payment networks, reading applications, and token issuance platforms—that demonstrate innovation and utility. He expressed optimism about BCH’s ability to attract new users and applications, particularly during bull markets, and stressed its potential for long-term user retention compared to other cryptocurrencies.
Future Opportunities for BCH
When discussing where new BCH users might come from, Wu identified curiosity and market cycles as key drivers. He noted that rising prices during bull markets attract speculators and new investors, many of whom explore cryptocurrencies for the first time. Although market bubbles eventually burst, Wu believes BCH is well-positioned to retain users due to its practical utility and strong ecosystem.
He also acknowledged the importance of continuous technical development, focusing on reducing transaction costs and improving scalability. Rather than pursuing aggressive protocol changes, Wu advocated for a measured approach that prioritizes stability and gradual innovation.
DeFi and Protocol Development
Jihan Wu shared his views on decentralized finance (DeFi), describing blockchain technology as inherently aligned with DeFi principles. He noted that DeFi offers users greater financial freedom, including access to lending and interest-earning opportunities, and predicted that advanced financial transactions on blockchain are inevitable.
However, Wu cautioned against drastic protocol updates, warning that they could lead to community conflict. Instead, he recommended that the BCH community focus on perfecting electronic cash functionality before expanding into DeFi or smart contracts. He expressed openness to supportive upgrades but emphasized the importance of maintaining decentralization and avoiding divisive changes.
Impact of COVID-19 on BCH and Crypto Markets
Wu shared his outlook on the COVID-19 pandemic, predicting that the situation would improve within three to four months as technological solutions emerge. He believes the cryptocurrency market stands to benefit from central banks’ monetary policies, such as increased money supply, which could drive demand for inflation-resistant assets like cryptocurrencies.
At the same time, he acknowledged that a prolonged economic downturn could negatively impact crypto markets, since financial activity depends on productive output. Wu estimated that only 10–20% of economic activity can be sustained through remote work, underscoring the importance of restoring normalcy.
Stability and Stablecoins
On the topic of volatility and stablecoins, Wu agreed that stablecoins offer a practical solution for users in countries experiencing hyperinflation, such as Venezuela. He noted that stablecoins currently serve a small user base but have immense growth potential.
Wu expressed support for stablecoin development on BCH, including projects like USDH, and welcomed the integration of established stablecoins like USDT. He framed stablecoin adoption as a win-win scenario that could bring more users into the BCH ecosystem and foster greater utility over time.
Frequently Asked Questions
What is a halving event?
A halving event reduces the block reward miners receive by 50%. It is designed to control inflation and gradually decrease the supply of new coins. For BCH, this was the first halving since its creation.
How did BCH’s halving affect its price?
BCH’s price increased by 11.55% on the day of the halving and remained 4.2% higher the following day. This suggests a positive short-term market reaction to the reduced supply rate.
Why did mining power shift after the halving?
With reduced rewards, some miners found it less profitable to mine BCH and switched their hashing power to Bitcoin, which had not yet halved. This led to a noticeable drop in BCH’s network hashrate.
What is BCH’s primary goal?
BCH aims to become a scalable electronic cash system capable of supporting fast, low-cost transactions for users around the world. Its community is focused on improving usability and adoption.
How does BCH plan to compete with other cryptocurrencies?
By focusing on reliability, scalability, and real-world utility, BCH hopes to attract and retain users looking for practical payment solutions. Its emphasis on community-driven development also sets it apart.
Can BCH support DeFi applications?
While DeFi is possible on BCH, the community prefers to prioritize core functionality before expanding into complex financial applications. This cautious approach aims to ensure stability and consensus.
For those interested in tracking real-time market data and network metrics, you can 👉 explore live blockchain analytics. This can provide deeper insights into how halving events influence cryptocurrency ecosystems.