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Breaking News / Verge

Verge on the Verge of a Block Reward Halving

Thankfully, the name of Verge really lends its self to anticipation and can really give headlines a good sense of time scale. It seems that we are just five days (or so) from an official Verge block reward halving, according to the official Verge Twitter page.

According to a recent Tweet, the 9th of May will see block 2,124,000 mined. After this period, the amount of XVG earned by miners, per block mined, will be reduced by 50% as part of Verge’s on-going development and their ‘transparent monetary policy’.

 

Essentially, this will mean the reward available to miners is cut by 50%, which then leads on to us assuming that as a result, some miners will cease activity as the Verge blockchain becomes less profitable. What this means is that, with less miners on the network, those who stick by will eventually see an increase in the number of blocks they are able to mine and thus, the network should balance back out. In the long run, those who stick by the network will again start to profit from mining, eventually.

In terms of the value of Verge and XVG, what do we expect to see?

Well, as it stands XVG is on a bit of a decline. At the time of writing, XVG is valued at $0.079 and is down 1.75% Verge has witnessed a bit of a climb very recently, alongside some deep speculation regarding a potential Spotify partnership, however, it does seem that the curse of PornHub presses on, for now. We still believe that as the PornHub integration picks up some pace, Verge will see a new and quite large customer base soon enough, which in turn should push XVG back up towards $0.10.

In terms of the halving, it is difficult to predict what will happen to the value of Verge. Obviously, mining activity will decrease and interest in this specific area of Verge may fizzle out, for now. However, as time goes on and XVG essentially gets easier to mine, miners will once again start to profit from mining activity. They may just experience a small blip in the meantime. Will this blip have an impact on the value of XVG? Probably, though as it stands, we can’t tell which way it will go.

If we use a Litecoin halving from 2015 as an example, as the halving occurred, the Litecoin hashrate decreased dramatically and as did the value of LTC, moving from around $3.66 at the time, down to $2.80 or so immediately after the halving took place. How this will affect XVG however, should become clear by the 10th of May.


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Thomas has led a number of teams, giving training and guidance in marketing and PR. He has worked at high profile firms, with offices across the country. He has experience in copywriting and editing, for a variety of different sectors.