One of the bigger negative effects being felt amid the Covid-19 outbreak is the way in which businesses are batling. The economy is in a downward spiral globally, and many sectors have been hit hard — such as tourism and people-orientated companies.
However, the cryptocurrency space as a whole has shown some general resilience to the negativity brought on by the Covid-19 outbreak and the associated economic fears — that is if you take into consideration the cryptocurrency markets. However, there is still evidence that companies in the blockchain and cryptocurrency space are under pressure.
Reports from Candor, a professional networking service in the tech space, have shown that Bitcoin.com, the news site and associated wallet for Bitcoin Cash, is laying off about 50 percent of its staff. This is especially worrying for the Bitcoin fork as it approaches its first halving, usually a monumental and positive event.
Bitcoin.com is not the only cryptocurrency business under the pump as the same site reports that Bitfury is laying off its managers and offshore team. Ripple Labs has also stopped hiring for the time being, but then there are the likes of Bitpanda, who are still hiring.
Better to mine Bitcoin
While the entirety of Bitcoin Cash does not revolve around Bitcoin.com, it is still worthwhile noting that Roger Ver, the biggest proponent of Bitcoin Cash, is at the head of Bitcoin.com and the hit the site is taking does not bode well.
More so, the Bitcoin mining reward halving event due to take place next week is also worrying as in the lead up to this event there has actually been less mining taking place on the Bitcoin Cash blockchain. In a release on the Bitcoin.com site, it was stated that: “At the time of writing, it is 1.6% more profitable to mine the BTC blockchain and BTC miners face a halving in 39 days.”
The halving will mean that it will be suddenly a lot less profitable to mine BCH as the rewards from doing so will only net 6.25 BCH. The concern is that as it currently stands, it is slightly more valuable to mine Bitcoin, so this halving could see major miner capitulation, potentially.
However, for Bitcoin, the belief is a bull run could be initiated once the halving takes place because there will be more scarcity, and higher demand with less supply, hopefully pushing the price up. This does not seem to be the same setting for Bitcoin Cash which is supposed to be seen as a currency more than a store of value.