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Bitcoin Cash Reduces New Token Supply by 50% Ahead of Bitcoin Halving
According to Bloomberg, Bitcoin Cash, a cryptocurrency that split from Bitcoin in 2017, is today reducing the supply of newly minted tokens by 50%. This move comes as a harbinger of Bitcoin's own 'halving' event, which is expected to take place in about 16 days. Bitcoin Cash was a major player in the 'forking' trend, where multiple software development teams tried to create new forms of currency by modifying the original Bitcoin computer code and releasing coins with 'Bitcoin' in their names.
Bitcoin Cash's backers include Bitcoin, which is also expected to experience a decline in the supply of newly minted coins. These coins are given to the computers that support the network, known as miners. Historically, Bitcoin halving, which limits the supply of coins, has been known to trigger market booms. Anticipating these events often leads to increased market activity and speculation.