Will the block reward halving’s planned for the upcoming year appear advantageous to the value of these four cryptocurrencies?
Block reward halving cut the pace at which new coins are produced on the blockchain by 50 per cent. Such incidents, recognized as “halvenings,” have long been awaited by cryptocurrency enthusiasts as catalysts for driving up the value of their cryptocurrency assets.
Past efforts to forecast when the price of Bitcoin (BTC) will rise in response to halving have at best proven unreliable. However, few will quickly dismiss the processes outlined in the law on supply and demand. Thus, all else being equal, as the amount of coins remaining on the market reduces, the need for such coins—and hence the price of each grows.
1. Verge (XVG)
Verge (XVG) is scheduled to be halved on January 25 as the chain crosses a block level of 4,700,000. At this point, the existing incentive of 200 XVG given to miners every 30 seconds will be reduced to 100 XVG.
With just over 11 days to go before halving, it can be concluded that the chance to get forward of the decline in Verge’s supply already has gone. That being said, capitalizing on halvings has never been an absolute science, and sometimes the coin does not respond to the occurrence until after the fact.
2. Tomochain (TOMO)
Tomochain’s (TOMO) halving will happen on February 7 as the amount of TOMO coins released annually will be limited from 2 million to 1 million. The Tomochain blockchain includes two second block times and an epoch after 900 blocks. A limit of 250 coins is given to miners at present for each period. In February, this number will be halved to 125 coins.
Initiated in 2017, Tomochain utilizes a test-of-stake consensus system and is compliant with the Ethereum Virtual Machine. Therefore, the next half will be just the second in the coin’s history and the last. From here on, the TOMO issuance rate will stay similar until a complete supply of 100,000,000 coins has been achieved.
3. Ravencoin (RVN)
Although not officially expected to take effect until January 2022, Ravencoin’s (RVN) first reward halving is just 12 months away and will see the problem rate decreased from 5,000 RVN to 2,500 RVN per block.
Started in 2018, Ravencoin is targeted towards the registration and exchange of real-world properties on the blockchain. In 2018, the then little-known startup secured a significant investment of “millions of dollars” from online shopping giant Overstock.
Ravencoin hit an all-time high of $0.08 in June 2019. Currently, the coin markets for $0.016—a 48 per cent rise since the previous lows in November 2020.
4. Vertcoin (VTC)
Vertcoin’s (VTC) halving is set for December 8, December 8 point. As a result, the amount of VTC given to miners will be decreased from 25 to 12.5 per block.
Vertcoin was pulled from Litecoin (LTC)—the Bitcoin fork itself—in 2014 as a reference to the application-specific integrated circuit, or ASIC, devices developed for Litecoin mining the same year. However, vertcoin is designed to remain ASIC-resistant and can be mined with a GPU.
Once a function in the top 100 coins by market capitalization, Vertcoin is now listed in the mid-500s following a 98% fall from its all-time peak in December 2017.