September 20, 2020

Miners' massive departure: Litecoin and Bitcoin Cash networks lose their hash power

Miners' massive departure: Litecoin and Bitcoin Cash networks lose their hash power

Miners are massively leaving the network due to the low profitability of mining, leaving them unprotected.

Beginning with August Halving, mining activity inLitecoin network has declined significantly. For three months, the Litecoin hash level fell by 60%. The contraction in the Litecoin award, which many hoped would be a bull trigger, did not live up to expectations. The day before the reduction, the price of LTC soared above $ 100, but quickly rolled back to $ 60.37.

LTC hash rate reaches mid-Julyhistoric highs above 522 TH / s. Since then, the LTC hash rate has been in free fall. According to data provided by BitInfoCharts, the hash rate of the coin is now 193.5391 TH / s, which confirms a drop of about 60% in just three months.

Miners' massive departure: Litecoin and Bitcoin Cash networks lose their hash power

Current LTC mining profitabilityis at a depressing minimum. Cryptocurrency mining remains a costly activity requiring significant costs. Therefore, if miners cannot get a significant profit from their investments, they switch to other blockchains. This is similar to the case with Litecoin.

Same hash speed issuesalso tests the Bitcoin Cash network. The BCH hashrate currently stands at just 2.37 TH / s, compared with a record high of 7.88 TH / s last November. The lower the network hashrate, the easier it is to carry out a 51% attack. Recall that a recently unknown miner already controlled 50% of the Bitcoin Cash hash during the day and had full control over the blockchain.

Miners' massive departure: Litecoin and Bitcoin Cash networks lose their hash power