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Dogecoin Halvening Right Around The Corner

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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.

Price Implications

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.

Scarcity

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

  • s199

    im curious to see what is going to happen, particulary with ltc that will be more profitable to mine in the next days. this is going to be an interesting experience this time.

    • http://www.dailydoge.org dailydoge

      Agreed….I think a lot of the hashrate on Doge will switch to LTC. More sell pressure on LTC as a result?

  • Anan E. Moss

    Nice article! I like how you put how much doge per 24 hours we’ll be produced after the halving. Question – when we get to the 10k dogecoin reward for each block after Block 600,000, what does that equate to in # of doge produced a day? Thanks in advance for the info!

    • http://www.dailydoge.org dailydoge

      It would be roughly 14,400,000 daily. Each block takes on average 1 minute to solve. 60 * 10,000 = 600,000 * 24 = 14,400,000 every 24 hours. There is some slight variance to block discovery times but this figure is mostly accurate

      • Ann Annie Moss

        Thanks for the info!

  • http://digiconomist.net/ Digiconomist

    Upward price effects as a result of decreasing new supply should be limited because the halving is not a surprise. The entire schedule is predefined, so this is already priced in. You might have a surprise with regard to hash; but with all the new Scrypt ASICs coming the (negative) impact will also be limited. In theory you lose security at a halving as miners have their pay check cut. But there are so many new workers coming that security will become cheaper as well. Only in terms of network centralization you lose in all cases.

    • http://digiconomist.net/ Digiconomist

      Update after halving: Looking at the hash it is down to 50 GH/s. It was 60 GH/s two weeks ago before it quickly went up to 90 GH/s. So overall, a limited loss. It’s too early to talk about the new network distribution.