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As halving affect cryptocurrencies

Understand how usually halving affects cryptocurrency and how it relates to community.

Bitcoin

The third halving bitcoin, that is a decline of awards to miners twice, will happen in mid-2020. Then the reward for found block will be reduced from 12.5 to 6.25 BTC. Only in the history of bitcoin were two halving in 2012 and 2016. Both times after reducing the awards started a powerful bullish trend.

Analyst PlanB comes from the relation of “presence and inflow” (SF) coins of bitcoin — that is, the relationship between the working volume of the cryptocurrency and its inflation.

According to PlanB, this ratio is 25 for a hypothetical doubling of the current issue of the bitcoin component 17.7 million BTC, it would take 25 years, if it were possible.

For comparison, the gold index SF is 62. In some cases, a high value of SF corresponds to the high capitalization of the asset. After havening SF bitcoin value will rise to 50, which will allow him on this indicator closer to the gold.

The analyst comes to the conclusion that after halving capitalization of bitcoin could exceed $ 1 trillion, and the price of the cryptocurrency to $55,000.

Analysts at investment Bank Canaccord Genuity in may saidthat on the background of halving bitcoin can reach its record level recorded in December 2017.

Analyst Moon Overlord in January, notedthat it usually begins to rise about a year before halving, and was advised to buy digital currency in the remaining months, predicting the beginning of the growth of prices in may. As we know, he was close to the truth.

Moon Overlord does not mention specific values but believes that the upcoming halving could serve as a catalyst for growth in recent months.

Litecoin

Another halving litecoin reduced the award for the unit with 25 LTC LTC to 12.5, at the same time the difficulty of mining has increased by 200% since the end of December 2018.

On the one hand, investors expect from halving an attempt to increase cryptocurrency in the medium term, however, is anticipated bullish sentiment, the market shows a decline.

The founder of Litecoin Charlie Lee says:

“Halving is always a shock to the system”.

Lee believes that some miners would prefer to move away from their activities. Lee believes that challenge all knew from the beginning, and so its consequences already built into current LTC price.

Bitcoin Cash

Halving Bitcoin Cash is expected in April 2020. When creating a cryptocurrency developers used a new algorithm adjusting the difficulty, with the result that the miners were able to find a Bitcoin block Cash faster than found the main blocks of digital coins. This has led to a decrease in Hasrat bitcoin because the miners realized that to obtain cryptocurrency BCH is much more profitable.

Later, the creators of Bitcoin Cash once again changed the algorithm adjusting the difficulty. But due to the fact that Bitcoin miners Cash faster found blocks in the early days of the web, the first halving can take place a month earlier next halving bitcoin. In addition to possible rise coin in anticipation of halving coins, low reward per block may lead to reduced network security.

In 2020, at block 570 000 will be the first in the history of the zcash for halving. Now 20% of the commissions of the miners goes to the development of the project, but a year later the developers will cease to receive its share from the mining of digital coins.

The Creator of the zcash for Zuko Wilcox suggested the community find a new way of financing development of the project. Analyst, Adamant Capital Tour Demister stated that zcash for initially was incorrectly generated and technological changes will hardly help to improve it.

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