Important Halving’s This Year
By all indications, this year, 2020 will be an interesting and exciting year for what is foreseeable within the crypto world.
The market shows good signs of improvement and development within the Blockchain sector.
Non fungible tokens, decentralised finance, central banks developing central bank issued Digital Currencies and last, but not least, there are many other crypto halving’s happening within the crypto space.
So, you are aware of the bitcoin halving, but, what does it mean and how does this affect miners and crypto?
What Does The Halving Bring?
A halving is a significant event for a crypto-asset because it is the block rewards for miners, like ourselves, that are actually divided by two and become half of what they were before. This is because these cryptos were originally designed to stop the value of bitcoin and other cryptos becoming too easily accessible, meaning that it would be losing its value based on the simple economic principles of supply and demand.
So, the halving event causes a reduction in supply. And by the economic principles of supply and demand it naturally results in the value of existing shares or units to rise.
Within the bitcoin universe, Bitcoin (BTC) and its forks, bitcoin cash and SV, are all dropping from 12.5 tokens to 6.25 tokens, at roughly the same time within the next month.
Whilst the coin amount is the same the value for solving a block, the actual dollar amount does vary quite drastically.
If you are unaware of what a fork is, in simple terms, it is just another crypto currency that has been based on the original that brings supposed upgrades to the cryptocurrencies usage.
Bitcoin SV (BSV) Halving
The first of the forks is the controversial Bitcoin fork, Bitcoin SV (BSV), owned by self proclaimed Bitcoin creator Craig Wright, which, is also halving this month, April 2020. This will see its supply decrease from 12.5 tokens to 6.25 tokens. This will make the value of solving a bitcoin SV block worth approximately $1122.625 USD.
Bitcoin Cash (BCH)
Bitcoin Cash (BCH) – another hard fork and spin off of the original Bitcoin will see its supply become halved by May 2020. The supply, like Bitcoin, will decrease from 12.5 tokens to 6.25 tokens at block 630,000. This will make the reward for solving 1 block worth approximately $1325.125 USD
Bitcoin (BTC) Halving
The undisputed leader of the cryptocurrency world and the highest cryptocurrency by market capitalisation, Bitcoin (BTC), will also see its mining reward decrease from 12.5 to 6.25 BTCs.
It is the highly anticipated halving event of the year with it being Bitcoin’s 3rd ever halving event since inception over 10 years ago with major implications for both miners and more importantly bitcoin speculators and HODLers.
However, the reward for solving a block is still a staggering $41488.4375 USD
Altcoin Halvings For 2020
Some other important altcoins that are also having halvings this year include
ZCoin (XZC) Halving
The original Zcoin (XZC) halving will take place in September 2020. It will go from 25 XZC per block to 12.5 XZC per block
ZCash (ZEC) Halving
ZCash (ZEC) halving will take place in Oct 2020. The total number of ZEC mined by miners per block will reduce from 12.5 ZEC to 6.25 ZEC in the next halving at block 1,046,400.
Horizen (ZEN) Halvings
Horizen (ZEN) is a fork of ZClassic. Its halving will take place at Block 840000 in Nov 2020. The rewards will decrease from 12.5 to 6.25 tokens.
What Happens After A Halving?
What we have traditionally seen after these halving events is a price increase for the next 6-12 months.
There is obviously no certainty in this area of crypto speculating however, if history is anything to go by, what we can expect for most of these coins seeing out the year and coming into early next year is a significant price rise overall.