So we can’t change anything about it. Halving is carried out every approximately 4 years. The so-called Cryptocurrencies block halving is, therefore, the moment that the reward for a block is halved again. The same goes true for the IOTA Kurs now.
Consequences for the miners and the price
For the miners, this means that their rewards for making a block will decrease and, of course, they are not happy with the basics. Verifying transactions and making a block in the blockchain takes a lot of time and energy and also entails costs for equipment, insurance and personnel. Now it is not necessarily the case that miners have a problem when the halving takes place, because if the price of one Cryptocurrency increases, this can compensate for the smaller number of coins. Why should the price rise? Because the sales pressure is decreasing. The many miners receive fewer Cryptocurrencies, which means that fewer Cryptocurrencies immediately enter the market to be sold. Is the supply therefore decreasing and does the demand remain the same or does it increase? Then the price of Cryptocurrencies will rise.
In addition, for a transaction on the Cryptocurrencies blockchain transaction costs are charged with which the work of the miners can be paid for. The transaction costs are variable and become higher in many transactions large crowds. However, this is not necessarily something that will be a problem for users because new techniques are already being used to make transactions faster and cheaper.
Cryptocurrencies halving in 2020
The previous halving took place in 2017 and the next halving will take place in May of 2020. From that moment on, miners will only receive 6.25 Cryptocurrencies per block in the blockchain. As explained above, this does not necessarily have to be a problem for the miners, provided that the price of the Cryptocurrencies moves with it. And if we look at the past, it could just be. Take, for example, the first halving in 2012. A year after this halving, Cryptocurrencies price reached its peak so far. The same applies to the halving in 2017 because at the end of that year and early 2018, Cryptocurrencies again reached its highest rate so far. Now also applies in this market. Past results offer no guarantee for the future. But, we are looking forward to it and see it as an opportunity for Cryptocurrencies to rise again to greater heights.
No more block rewards
The block reward is not halved forever, because after the last halving there is no reward anymore. Once the last Cryptocurrencies have been mined, it is also not possible to hand out new Cryptocurrencies. The chance that you will experience that is small because the last Cryptocurrencies will probably only be created in 2140. After the last halving, miners are therefore completely dependent on the transaction costs on the blockchain. There is a chance that these costs will rise, but as stated, various techniques are already being worked on to keep these costs low. Consider, for example, the Lightning Network. This technique ensures that transactions are executed in a second layer on the blockchain and not on the blockchain itself. But, the moment that no more Cryptocurrencies can be made is still far away and the chance that something new has been developed by then to replace this story is of course very big.