Halving is Coming: Will Bitcoin, Litecoin, and Dash Prices Rise?
Key Highlights
BTC 2024 halving countdown：311days
LTC 2023 halving countdown：43 days
DASH 2023 halving countdown：3 days
According to the Tokenview Reduction &Halving Countdown page, there are still 311 days to go before the Bitcoin halving, when the block reward will be reduced from 6.25 BTC to 3.125 BTC; there are 43 days left for LTC, when the block reward will be reduced from 12.5 LTC to 6.25 LTC; There are less than 3 days left for DASH, when the block reward will be reduced from 2.76371046 DASH to 2.56630257 DASH.
The Bitcoin, Litecoin, and Dash halving/reduction is an important event in crypto. These halving/reduction events result in a decrease in mining rewards in each block. While this may result in lower revenue for miners, it also results in a reduction in supply, which supports price stability for these currencies.
Next let’s understand what is Bitcoin Halving, Litecoin Halving and Dash Reduction.
1 BTC Halving
Bitcoin halving is one of the most famous crypto halving events. The Bitcoin halving cycle is about 4 years, every 210,000 blocks.
According to the history of Bitcoin halving dates, the last three halvings occurred in 2012, 2016 and 2020. The first Bitcoin halving occurred in 2012, when the reward for mining a block was reduced from 50 BTC to 25 BTC. The 2016 halving event reduced the block reward to 12.5 BTC. In 2020, the block reward will be reduced to 6.25BTC. The last halving was on May 11, 2020, when the block reward was reduced from 12.5 BTC to 6.25 BTC.
The next Bitcoin halving is expected to occur in April 2024, and the block reward will drop from 6.25 BTC to 3.125 BTC. The halving system will last until approximately 2140, when all 21 million BTC will be fully mined.
The purpose of Bitcoin halving is to gradually control the supply of Bitcoin. This scarcity will help support Bitcoin’s price stability.
2 Litecoin Halving
The Litecoin halving refers to the halving of mining rewards in the Litecoin network. The Litecoin halving is similar to the Bitcoin halving, but different in some ways.
The halving cycle of Litecoin is also every four years, which is about 840,000 blocks (about four years). Historically, Litecoin has undergone two halvings. The first time was on August 25, 2015, when the block reward for miners was reduced from 50 LTC to 25 LTC. The second time was on August 5, 2019, when the reward was reduced to 12.5 LTC. The next Litecoin halving is expected to occur in August 2023, and the block reward will be reduced from 12.5 LTC to 6.25 LTC. The halving will continue until the block reward reaches zero (around 2142).
How will halving affect Litecoin? On the one hand, the halving will lead to an increase in the difficulty of mining, because miners need more computing power to obtain the same amount of Litecoin. This will lead to a reduction in miners’ income, which in turn will cause some miners to withdraw from the Litecoin network. On the other hand, the halving will also lead to an increase in the price of Litecoin. This is because the halving means that the supply of Litecoin decreases while the demand remains the same, which causes the price to increase.
3Dash Reduction
Dash (DASH) “halving” in a different way than Bitcoin and Litecoin. Instead of cutting the block reward in half, it reduces the reward by 7.14% every year.
According to the developers, the mechanism is much better than Bitcoin and Litecoin because it is more predictable.
The Dash block reward decreases by approximately 7.14% every 210,000 blocks, approximately 383 days. Tokenview halving page shows that there are less than 3 days before the Dash halving, which is expected to happen on June 23. When the halving occurs, the block reward will decrease from 2.76371046 DASH to 2.56630257 DASH.
An interesting aspect of Dash’s block reward mechanism is that Dash miners do not receive 100% of the block reward. Instead, 10% of block rewards are reserved to fund proposals aimed at strengthening the Dash ecosystem; 45% are allocated to miners to improve network security; and another 45% are allocated to masternodes.
The halving event is a critical event for the Dash network as it affects how many new Dash coins are put into circulation, which in turn affects the supply and demand dynamics of the cryptocurrency.
4 Summary
These halving/reduction events are meant to control supply, support price stability, and are important milestones in the evolution of these digital currencies. Although the halving/reduction event may lead to a decline in miners’ income, it also helps to support the price stability of currencies, thereby attracting more people to participate.
More blockchain halving events to follow:
