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Halving Days Ahead: Litecoin, BCH, BSV and then Bitcoin. What to expect?

Unlike fiat currencies, cryptocurrencies are limited in nature, which makes them deflationary and not inflationary. There will only be 21 million bitcoins in existence, and the last bitcoin will be mined in 2140. Every four-year bitcoin goes through halving. In this process, people who mine bitcoins, their reward is reduced in half. For example, when the first block of bitcoin was mined, the reward at that time was 50 BTC, which the miner would get. And in 2012 when first halving happened reward for one block went down to 25 BTC. And next halving occurred in 2016 and reward for mining one block went down to 13.5 BTC. Next halving of bitcoin is scheduled to take place in May 2020.

How halving affects the price of the cryptocurrency?

The halving of many cryptocurrencies is scheduled soon, and investors should keep an eye on that if past has taught us anything. Process of halving reduces the reward prize of miners by half, which has a significant effect on the price cryptocurrency in the long term. Halving discourages miners to continue mining digital currency which creates scarcity and helps the prize of cryptocurrency go up. After the halving of bitcoin in 2016, the price of bitcoin saw an all-time high in the next year. Halving of Litecoin, BCH, BSV, and Bitcoin is scheduled in the next 12 months. So how would it affect the market, and what should you accept? We’ll look at halving of these cryptocurrencies in detail below.

 

“Litecoin’s halving next month will shock miners ” Charlie Lee.

The planned halving of Litecoin will kick in on 5th August, which is 11 days from now. The first halving of Litecoin happened in 2015, where block reward was reduced from 50 LTC to 25 LTC.
The price post halving of litecoin shot up to 100% from $1.5 to $3. If historical data stands true, we can expect the same results this time too.

Managing director of Litecoin in an interview said that halving of litecoin would lead to some miners shut off their machines as the process would not be so profitable. He also added that it would take around seven days to readjust difficulty.

When asked about halving’s relation to the price inflation, Lee compared it to a self-fulfilling prophecy. He said a lot of people buy because they expect the price to go up, which leads the price actually to go up.

Litecoin price has seen 90% downfall from its all-time high, and this halving could rejuvenate the litecoin in the cryptocurrency market.

 

BSV’s halving could help end it’s downward spiral

BSV’s halving is scheduled to take place in May of next year. Bitcoin SV was created as a spin-off to Bitcoin cash (BCH). BSV has large block size compared to BCH. It is also highly centralized behind CoinGeek Founder Calvin Ayre and nChain Chief Scientist Craig Wright. In April of last year, BSV saw a huge downfall, in just two weeks the price of BSV fell by 40%. Its halving next year could save the cryptocurrency and may see a much-needed rise in its value.

 

Bitcoin Cash to be halved next year

BCH launched in 2017 will be halved first time in April of 2020. Current block reward of mining bitcoin cash is 12.5 BCH, after halving miners will receive 6.25 for a block mined. 80% of total BCH is currently in circulation, so after the process of halving next year, it would become quite challenging to obtain BCH as miners’ revenue would be cut in half.

According to various reports, BCH is among the top 10 cryptocurrencies at the time. After the halving process, the value of BCH might see an all-time high.

 

The third halving of mainstream “BTC.”

Bitcoin will be halved third time in its history on 21st May 2020. Current block reward price for mining BTC is 12.5 BTC after May of next year this reward will go down to 6.25 BTC. Both the previous time when BTC was halved its price skyrocketed. Especially after the second time in 2016 when its price went from $230 to $20,000. There were also different variables at play when halving happened the last two times. But this time, people are aware of the event and how would it affect the process would be exciting to see. But it is for certain that there is a direct correlation between bitcoin reward halving and price volatility afterward.

Fiat currency of any country sees a reduction in its value over time as the government keeps printing and authorizing new money. But with cryptocurrency, this is not the case, there are only a predetermined amount of coins available, and at one time they will all be in circulation, which makes them more valuable. According to industry experts and many statistical reports, it takes around 8 to 12 months from time of the halving process to see the hike in the price of any cryptocurrency.

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Written by Jai Pratap

A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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