Privacy coin Zcash (ZEC) approaches its first halving
- Popular privacy coin Zcash is approaching its first halving.
- The halving is expected to take place tomorrow, November 18th, shortly before 1 pm UTC.
- Process will see ZEC block rewards drop from 6.25 to 3.125, but the reaction of the price remains unknonwn.
Cryptocurrency Zcash (ZEC), one of the most popular privacy coins in the crypto industry, is currently only one day away from its first halving.
The halving will take place around six months and seven days after Bitcoin’s third halving — on November 18th, 2020 at approximately 12:41 UTC.
Zcash’s first halving to take place tomorrow
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Crypto halving is a practice where block rewards get divided by two, meaning that miners’ rewards for solving blocks will get cut in half. This is a mechanism originally introduced by Satoshi Nakamoto, the individual or group responsible for creating Bitcoin itself.
In Bitcoin’s case, halving takes place approximately every four years, or more accurately, every time after Bitcoin miners mine 210,000 blocks.
Zcash, like Bitcoin, is approaching its halving as well, although this will be the project’s first halving since its creation. Currently, ZEC miners still receive 6.25 ZEC per block. However, after tomorrow, November 18th, miners’ rewards will be cut down to 3.125 per block.
The halving and its impact on ZEC
The mechanism is meant to control the issuance of new coins, and serve as an anti-inflation measure, as well as a method of increasing the coin’s price.
With the supply of new coins getting reduced, it is assumed that the number of users will remain the same or grow bigger, meaning that demand itself should grow. As a result, the price of ZEC, sitting at $64.62 at the time of writing, is expected to grow.
Of course, this is not a rule, but only an expectation, and it is entirely possible that the price of ZEC will go up, down, or remain the same. With that said, Zcash did see quite a surge in interest over the past few days.
Yesterday, November 16th, its price went up from $60 to $66.13, which was followed by a mild correction to $65. Since the correction, the ZEC price has been going above and below this level, but ultimately, it remained quite close to it.