In the last articles we’ve discussed what is halving and answered it. Now, to complete the information, we wanted to talk about 3 cases of cryptocurrencies that have been reduced by half and have had positive outcomes. Even though it can’t be assured that half of the time is the main cause of these cryptocurrencies, they would see better changes in their price, if it can be said that it has an impact on it. We wait for help.
A case that has seen long-term improvements in the price of its currency is Litecoin. Since their code is based on the Bitcoin code, they took halving in the same way within their cryptocurrency. His first halving occurred on August 25, 2015, when the network reached 840,000 completed blocks. This will happen every 4 years, and in its first halving the reward to miners went from 50 LTC to 25 LTC.
In the beginning, and after this reduction process, the cryptocurrency did not see a considerable increase in its price, reason why it raised many doubts among its users. They did not consider that the halving had the positive effect that they thought it would have in the short term, but in the long term there were improvements in its price. When the first halving was done, the price of an LTC unit was USD $ 3, and the price is currently USD $ 52.69 *.
Perhaps the best-known case of halving is the cryptocurrency that started it all. The halving that Bitcoin has gone through has been a perfect example of the benefits that this process has. This being because it has allowed to maintain a balance in the price and the value of the cryptocurrency with respect to the amount of currencies that there are in the market. Thus, the price of the crypto has shown that, after a year of halving, prices increase exponentially. Even though it is not certain to know that this price spike is caused by halving, we can say that it has helped keep Bitcoin as the most stable cryptocurrency.
According to the studies that have been conducted of the Bitcoin halving, it has been observed that the miners have shown confidence to maintain or increase the computing power during a halving process due to expectations that the price of the cryptocurrency will increase, balancing the loss of reward. The reward for current mining is 12.5BTC per block completed, its price before its last halving ranged between USD $ 400 and 600, and currently is USD $ 6,299.68 *.
Another case of success is Dogecoin, a cryptocurrency that had halvings shortly after its creation. In its last halving, which occurred in February of 2015, a reward was kept for mining 10DOGE, after reaching the 600,000 blocks completed. Being that this is a cryptocurrency with no maximum cryptocurrency issuance, halving helped maintain a stable price in it, decreasing the amount of DOGE in the market by decreasing the mining reward.
Since the last halving, the DOGECOIN has gone from having a price of USD$0,000153 to USD$0,005 *.
Price of the cryptocurrency for October 11, 2.018 according to CoinMarketCap.
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