There has been a significant switch from mining Bitcoin to Bitcoin cash. At the moment, the new kid is winning miners on the Bitcoin blockchain over. This is because the coin is now more profitable to mine than Bitcoin core. However, this situation isn't expected to last.
The price of Bitcoin cash recently hit an all-time high of $1,000 on the back of massive buying in Korea and partly because of a slight reduction in its mining difficulty.A major adjustment to the coin's mining difficulty which would make it much more profitable to mine than Bitcoin core was recently announced.
That talked about adjustment happened on the weekend, and it brought down the mining difficulty by 40%. This made Bitcoin Cash's mining difficulty 7% of bitcoin core's. As a result, blocks were getting mined ridiculously fast on the network. About 500 Bitcoin cash blocks were mined in 23 hours, translating to an average rate of 20 blocks mined per hour.
Reacting to this difficulty adjustment, miners have jumped from Bitcoin to bitcoin cash. Antpool, BTC.com, viaBTC and others have increased their hash rate for bitcoin cash. At the moment, 33% of miners on the networkhave dedicated their resources to mining bitcoin cash.
However, this situation is not expected to last for a long time. As a result of this rapid mining of Bitcoin cash, another difficulty adjustment is on the horizon. It is predicted that it will happen on the 22nd or 23rd of August, and would triple the difficulty in mining Bitcoin cash, making it 21% of bitcoin core's.
Hence, the coin will be more difficult to mine and will no longer be more profitable to mine than Bitcoin. Miners might then abandon the coin for Bitcoin, especially since its price has fallen considerably in the market. We might also see this situation repeat itself over and over again as time goes by- difficult Bitcoin cash mining, easy Bitcoin cash mining, and so on.
Miners with significant hash rates might then switch between the coins based on their opinion of which one is most profitable at a particular time. ViaBTC and AntPool have indicated that they are or will soon begin working on technology that will enable miners to direct their computing power to whichever chain is offering the most profits.
So, is the competition is on? It very much seems so.