5 Cryptocurrencies with upcoming halvings in 2020

BTC, BCH, BSV, DASH, and ETC are the 5 cryptocurrencies that have attracted more and more attention in the market in 2020 as the halving is happening.

What is the halving?

You may not understand what halving is, which is a concept that makes cryptocurrency different from fiat currency.

Take BTC as an example. The reason why there is new BTC in the market is that miners have obtained BTC rewards for mining blocks.

But Satoshi Nakamoto set two rules for Bitcoin:

1. The maximum circulation limit of BTC is 21 million.

2. Every 4 years, the BTC rewards produced by each block will be reduced by half.

This is the origin of Bitcoin halving. BCH, BSV, DASH, ETH and other cryptocurrencies with a PoW consensus mechanism have adopted a halving design.

What is the relationship between Halving and the price of cryptocurrencies?

The original intention of the halving design was to address hyperinflation and protect prices of the cryptocurrencies.

Many countries are experiencing a severe inflation crisis due to the central bank’s excessive currency issuance.

The halving of digital currency is to reduce the inflation rate by adjusting the relationship between supply and demand and to protect the price of digital currency.

As a concise example, if Bitcoin is very easy to mine and has unlimited supply, it will easily depreciate. Only by reducing its supply can its prices be guaranteed.

The first halving of Bitcoin was on November 28, 2012. The block reward was reduced from 50 BTC to 25 BTC, and the Bitcoin price increased by 13,378%. On July 10, 2016, the second halving was completed, and the block reward was reduced from 25 BTC to 12.5 BTC, stimulating a 12,160% price rebound.

It should be noted that halving is not statistically positively correlated with the price, because the sample size is limited. But the original intention of halving design is to protect the price.

Data source: coinmarketcap