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Halving: see which one will be next

Halving: see which ones will be next

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Halving is a common phenomenon in cryptocurrencies and affects the rewards of mining. What are the consequences for the market?
Litecoin halving happens today (Aug 5th), and you need to know a little bit more about what this event is and what repercussions it has for the currency in which it occurs.

The concept of halving is born with cryptocurrencies, ie Bitcoin. It came within Satoshi Nakamoto's original design of this coin. Halving is an event that occurs every 210,000 blocks mined in a cryptocurrency chain.

When it occurs, the reward for miners working in the cryptocurrency network is halved, so if Bitcoin miners initially received 50 BTCs for each mined block to be distributed to all those who worked on it, after 210,000 blocks the reward was reduced to 25 Bitcoins until they reached the 12.5 BTCs that miners currently receive after a mined block.

The post-mining reward for each block has been established as a mechanism to encourage mining, ie the process by which transactions made with Bitcoins (or other cryptocurrencies) are integrated with Blockchain, allowing the cryptocurrency network to function. Therefore, mining is the equivalent, within the world of digital assets, to the central bank's monetary question.

However, unlike government agencies responsible for printing money, Bitcoin has a finite amount to be issued, which has been set at 21 million. This is meant to serve as a deflationary counterbalance to the circulation of more Bitcoins, similar to what happens with gold: Cryptocurrency will be valuable because it is scarce.

In addition, after each halving, the difficulty in Bitcoin mining is increased, as well as a mechanism to prevent sudden entry of liquidity into the cryptocurrency market, protecting its value over time.

Bitcoin's third halving is now expected to occur in the year 2020, when the reward for each mined block will be reduced to 6.25 BTC, with 18.3 million Bitcoins or 89.06% of the same mined at the moment. Currently, it is estimated that each Bitcoin halving should occur every 4 years, with a variable estimate according to the existing mining capacity in the system.

But if the difficulty in mining increases while the reward decreases, it is worth asking: What prevents miners from leaving? In the case of Bitcoin, the reduction in the entry of new BTCs into the market leads to a reevaluation of the digital asset that leads to the fact that while the cryptocurrency reward decreases, its value is maintained or increased.

In the case of other cryptocurrencies, such as Litecoin, this is not seen so obviously, being in fact one of today's biggest halving fears (8/5). Because if the reward in Litecoin decreases but its price remains stable, we could witness a mining exit from the cryptocurrency network. And that would seriously affect the operation of the LTC.

This same risk exists for other altcoins, so some like Ethereum rebelled against this mode of operation in the world of cryptocurrencies, eliminating halving from their programming. In the case of Ethereum, its nature is not deflationary, but inflationary, maintaining the objective of achieving annual inflation of 1%, for which the reward for the mining bloc remains stable, while increasing mining difficulty is a decision of the programmers.

Thus, either by inflationary or deflationary means, cryptocurrencies seek to generate systems that regulate their operation, ensuring that the network continues to function and that users have confidence in the currency they have mined.

Litecoin Halving - 2019

Today is the Litecoin Halving - What is This And Why Should You Care? rewards will be "cut" in half
Today litecoin will undergo a scheduled change to halve its reward - a process aimed at preserving the purchasing power of cryptocurrency. The mining reward is currently 25 litecoins ($ 2,500) per block and will fall to 12.5 litecoins ($ 1,200) per block on August 5.

With this transition, the protocol will be adding significantly less litecoins to the market after August 5th.

See more here: https://steemit.com/litecoin/@phabulu/as-litecoin-halving-nears-analysts-fear-bearish-ltc-scenario-what-is-coming

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The next bitcoin halving is planned to happen in 285 Days : https://www.bitcoinblockhalf.com/

What is Bitcoin Halving?

Bitcoin Halving is the event where the number of generated Bitcoin rewards per block will be halved (divided by 2).
The total number of Bitcoin mined by miners per block will reduce from 12.5 to 6.25 BTC in the next bitcoin halving.
The number of bitcoin found per block will become more scarce and this halving reward ensures that bitcoin total supply will reach 21 million.

In the Bitcoin network, user transactions are grouped in blocks and recorded to a digital public ledger called a blockchain. Miners are in charge of this task, and receive a mining reward in the form of bitcoins for each block recorded.

The amount of bitcoins rewarded for each block decreases with time: it is halved every 4 years. This event, the moment when the mining reward is divided by 2, is commonly called "Bitcoin halving". Other denominations are used: "reward drop", "reward halving", or simply "the halving" or "the Halvening" which is a popular meme among bitcoiners.

When Bitcoin was created in 2009, the initial reward was 50 bitcoins. In november 2012, it dropped to 25btc after the first halving. The second halving will take place in July 2016, decreasing the reward to 12.5btc. Read more...

Check the Bitcoin halving history and you will observe a peculiar pattern. In 2009 when Bitcoin was newly launched, the reward for miners was capped at 50 Bitcoins per block. In November 2012, after almost four years, the reward reduced by half to 25 Bitcoins per block. This period was officially known as the second reward era.

Bitcoin halving schedule is such that every four years, the event occurs. Even though Bitcoin halving occurs after 210,000 blocks have been completed, it is possible to estimate an arbitrary date.

The third reward era of Bitcoin mining occurred in July 2016 and the reward for miners was reduced to 12.5 Bitcoin per block. This will continue for years until the year 2140 when all the 21 mln Bitcoins in store have been exhausted.

When is the next Bitcoin Halving?

Block #630,000 (estimated around May 24th, 2020)

When was the last Bitcoin Halving?

Block #420,000 (July 9th, 2016)
(Bitcoin block reward went from 25 BTC to 12.5 BTC)

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