Four cryptocurrency block reward halves to watch out for in 2021

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Block reward halves cut the rate at which new coins are generated on a given blockchain by 50%. Such events, jokingly referred to as “halves”, have long been expected by cryptocurrency traders as catalysts for increasing the price of their cryptocurrency holdings.

Previous attempts to predict when the price of Bitcoin (BTC) would rise relative to the halving has proven inconsistent at best. However, few would be willing to quickly ignore the mechanisms described in the law of supply and demand. When all things are the same and the number of coins available in the market decreases, the demand for these coins – and with it the price for each – increases.

With this in mind, here are four cryptocurrency projects that are expected to see their block rewards halved in the coming year if their emission rate is halved.

Verge (XGV)

Verge (XVG) will cut in half on Jan 25 when its chain hits 4,700,000 blocks. At this point, the current reward of 200 XVG given to miners every 30 seconds will be reduced to 100 XVG.

Just over eleven days before the halving, it can be assumed that the opportunity to stay one step ahead of Verge’s reduction in supply has already passed. However, benefiting from block reward halving has never been an exact science, and often a coin reacts to the event only after the fact.

XVG price hit an all-time high of $ 0.30 back in December 2017 before slipping to $ 0.001 for nearly three years through 2020. Since the winter surge that took Bitcoin to a new all-time high, Verge’s luck has been reversed. The coin saw a 219% growth rate between November and the time of writing.

Tomochain (TOMO)

The Tomochain (TOMO) halving will occur on February 7th, when the number of TOMO coins issued annually is reduced from 2 million to 1 million.

The Tomochain blockchain offers block times of two seconds, and every 900 blocks form an epoch. A total of 250 coins are currently being issued to miners for each era. That number will be halved to 125 coins in February.

Tomochain was launched in 2017 and uses a consensus mechanism to demonstrate stake. It is compatible with the Ethereum virtual machine. The imminent halving will only be the second in the history of the coin and also the last. From here on, the TOMO emission rate remains the same until the total supply of the coin has reached 100,000,000.

Vertcoin (VTC)

The Vertcoin (VTC) block bonus is slated to halve on December 8th. From that point on, the number of VTCs issued to miners will be reduced from 25 to 12.5 per block.

Vertcoin was forked by Litecoin (LTC) – itself a Bitcoin fork – in 2014 in response to the application-specific integrated circuits (ASIC) invented for Litecoin mining that same year. Vertcoin is said to remain ASIC-resistant and can be mined with a GPU.

Once a feature of the top 100 coins by market capitalization, vertcoin is now in the mid-500s after falling 98% from its all-time high in December 2017.

Ravencoin (RVN)

Although technically not planned to take place by January 2022, the halving of Ravencoin’s first block reward (RVN) is only 12 calendar months away and the emission rate will be reduced from 5,000 RVN to 2,500 RVN per block.

Ravencoin was launched in 2018 and is geared towards registering and trading real assets on the blockchain. In 2018, the then little-known project received a surprising “million dollar” investment from American online retail giant Overstock.

Ravencoin hit an all-time high in the $ 0.08 range in June 2019. Today the coin trades at a price of $ 0.016 – a 48% increase from its recent November 2020 lows.