On April 10 at 12:48 a.m. (UTC), Bitcoin Satoshi's Vision saw its first-ever halving, in which the number of coins issued to miners was cut in half from 12.5 per block to 6.25 — an effective 50% reduction in the revenue of BSV miners.
Miners were quick to react.
If any of this sounds familiar, it’s because I wrote something very similar yesterday, only about BSV’s main rival, Bitcoin Cash. This event came just over 24 hours after Bitcoin Cash went through its own halving and saw a similar trend, whereas its hash rate dropped 80% and its difficulty tanked 50% at the worst of it.
BlockChair data shows that since the halving, the hash rate of Bitcoin Satoshi's Vision has collapsed from 3.06 exahashes per second to 1.23 exahashes per second as of April 10 at 3:57 p.m. (UTC), a drop of approximately 60%. The hash rate is the amount of computational power, measured in hashes, miners allocate to a network.
This has been reflected in the network difficulty, or how hard it is for miners to process blocks in a blockchain, which has dropped 420 billion to 291 billion, per Satoshi.io.
Block difficulty is likely to drop further in the coming hours as there have been a mere 35 Bitcoin Satoshi's Vision blocks mined in the 15 hours since the halving, 55 below how many blocks would be mined in a normal period. As the blockchain uses difficulty to maintain an average of six blocks mined per hour, it should continue to dynamically adjust to ensure transactions are processed on time.
The reason why hash rate, difficulty, and block time are all dropping in tandem has to do with miner profitability.
The halving resulted in an instant 50% reduction in mining revenues for those operating on the BSV chain, forcing operators running on tight margins to turn off their machines or mine on other networks. Less machines mean less computers processing blocks, resulting in slower transactions.
Profitability concerns have presumably been compounded by a weak crypto market, with Coin Market Cap reporting that BSV has collapsed by 13.3% in the past 24 hours as of April 10 at 1:11 p.m. (UTC). The Bitcoin fork is trading 50% lower than the February 11 high of $375.
Responding to a falling BSV price that is now $46 below that of BCH, the security of the Bitcoin Cash chain has since rebounded since the 80% hash rate drawdown.
Despite the recovery, both chains are still much less secure than they were just two days ago. Simultaneously, Bitcoin's hash rate has risen, at least according to CoinWarz, indicating that the halvings of Bitcoin forks push miners towards other blockchains where more profits can be found. In this case, the other blockchain is Bitcoin.