Could the block reward halvings scheduled for next year be beneficial to the valuations of these four crypto-currencies?
Block reward halvings reduce the rate at which new coins are generated in a given blockchain by 50%. Such events, jokingly known as „halvings“, have long been anticipated by cryptomoney traders as catalysts for raising the price of their cryptomoney holdings.
Previous attempts to predict when the price of Bitcoin (BTC) would rise in relation to halvings have proved inconsistent at best. However, few would be willing to quickly dismiss the mechanisms described in the law of supply and demand. All things being equal, as the number of currencies available on the market decreases, the demand for those currencies and therefore the price of each one increases.
With that in mind, here are four crypt coin projects that will undergo block reward halving next year, when their rate of issuance will be halved.
Verge (XVG) will experience a halving on 25 January when its chain reaches a block height of 4,700,000. At this point, the current reward of 200 XVG that is issued to miners every 30 seconds will be reduced to 100 XVG.
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With just over 11 days to go before halving, it can be assumed that the opportunity to anticipate the reduction in Verge’s supply has passed. However, taking advantage of block bounty halvings has never been an exact science, and many times a coin does not react to the event until after the fact.
The price of XVG reached an all-time high of $0.30 in December 2017, before falling nearly three years to the $0.001 mark in 2020. Since the winter rise that sent Bitcoin to a new all-time high, however, Verge’s fortunes have reversed. The currency grew by 219% between November and the time of writing.
The Tomochain halving (TOMO) will take place on 7 February, when the number of TOMO coins issued annually will be reduced from 2 million to 1 million.
Tomochain’s blockchain network has block times of two seconds, with every 900 blocks constituting an era. For each period, a total of 250 coins are issued to miners today. This will be halved to 125 coins in February.
Launched in 2017, Tomochain uses a consensus-based participation testing mechanism and is compatible with the Ethereum virtual machine. The next halving will be only the second in the history of the coin, and also the last. From then on, TOMO’s issuance rate will remain the same until the total supply of the coin of 100,000,000 is reached.
The Vertcoin block reward halving (VTC) is scheduled for December 8, at which time the amount of VTC issued to miners will be reduced from 25 to 12.5 per block.
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Vertcoin branched off from Litecoin (LTC) (which is itself a Bitcoin branch) in 2014 in response to the application-specific integrated circuit, or ASIC, machines that were invented for Litecoin mining in the same year. Vertcoin is intended to remain ASIC-resistant and can be removed with a GPU.
Once one of the top 100 currencies by market capitalisation, Vertcoin is now ranked in the 500 range after a 98% decline from its all-time high in December 2017.
Although technically not scheduled until January 2022, the halving of the first Ravencoin block reward (RVN) is only 12 calendar months away and will see the emission rate reduced from RVN 5,000 to RVN 2,500 per block.
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Launched in 2018, Ravencoin is geared towards the registration and trading of real-world assets in blockchain. In 2018, the then little-known project received a surprise „million dollar“ investment from US online retail giant Overstock.
Ravencoin reached an all-time high in the $0.08 range in June 2019. Today, the currency is trading at $0.016, up 48% from recent lows in November 2020.