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Well folks, it looks like we are approaching our next block halving. At press time, we are on block 298,562 and the block reward halving will occur on the 300,000th block. Our current block reward is 125,000 Dogecoin per block which translates to roughly 180 million new Dogecoin being generated every 24 hours. As the name suggests, a block halving will reduce the existing block reward by half which would result in a block reward of only 62,500 Dogecoin — or 90 million new Dogecoin every 24 hours.
Historically, block halvings have also attracted at least some price action. It remains unclear whether or not the recent rise in price has anything to do with this upcoming halving; however, readers should note that the network hashrate and network difficulty is remarkably high. Due to Litecoin’s recent drop in price, it is likely Dogecoin is being targeted by Scrypt ASICs.
To put it in perspective, roughly $47,000 worth of Dogecoin is being generated everyday. Reducing this number by half will certainly help ease the sell pressure and perhaps even mark the beginning of an extended uptrend.
Naturally, humans have a tendency to value abundant objects less than those which are scarce. Needless to say, Dogecoin is relatively abundant right now which might contribute to its comparatively low price. Perhaps with cessation of the official Proof-of-Work period, the notion of scarcity will become more prevalent among holders and drive up Dogecoin’s value. Dogecoin is a good coin — people know this. It is backed by a team of incredible developers, has one of the largest communities, and has a remarkable track record. However, there is no sense of “missing the boat” with Dogecoin due to its extended stagnation and abundance. I think as the supply dries up and more people are less willing to sell, we will see some interesting things.
Let me know what you think