Block reward halvings cut the rate at which new coins are generated on a given blockchain by 50%. Such events, known jokingly as “halvenings,” have long been anticipated by cryptocurrency traders as catalysts for pushing up the price of their cryptocurrency holdings.
Past attempts to predict when Bitcoin’s (BTC) price would increase in relation to halvings have proved inconsistent at best. However, few would be willing to quickly discount the mechanisms described in the law of supply and demand. All things being equal, as the number of coins available on the market decreases, the demand for those coins — and thus, the price of each — increases.
With that in mind, here are four cryptocurrency projects that are due to undergo block reward halvings in the coming year, when their issuance rate will be cut in half.
Verge (XVG) is set to undergo a halving on Jan. 25 when its chain reaches a block height of 4,700,000. At this point, the current reward of 200 XVG which is issued to miners every 30 seconds will be cut to 100 XVG.
With just over 11 days to go before the halving, it may be assumed that the opportunity to get ahead of the reduction in Verge’s supply has already passed. However, capitalizing on block rewardTitle: Four cryptocurrency block reward halvings to look out for in 2021
Sourced From: cointelegraph.com/news/four-cryptocurrency-block-reward-halvings-to-look-out-for-in-2021
Published Date: Wed, 13 Jan 2021 13:56:01 +0000