- Zcash, which is a popular privacy coin, will undergo a block halving in November
The Bitcoin block halving may be done, but at least one other major cryptocurrency is still waiting for its halving. Some 175 days from now, which is sometime in November, the Zcash halving will happen and the block reward will drop from 12.5 coins to 6.25 coins. Notably, this block reward reduction should go a long way towards mitigating Zcash’s inflation problem.
Essentially, although Zcash is a fork of Bitcoin and has a similar controlled supply system and the same maximum total supply of 21 million coins, it has a rapid block time of 1.25 minutes. Compare this to Bitcoin, which has a block time of 10 minutes. Zcash’s rapid block times cause its inflation rate to be astronomically higher than Bitcoin.
Indeed, Zcash has an annual inflation rate of just over 28%. Compare this to most other major cryptocurrencies which have inflation rates below 7%, and Bitcoin which has an inflation rate of 1.5%.
This high inflation rate is undoubtedly suppressing the Zcash market, and is one of the reasons why it has slid to #26 on CoinMarketCap. However, in November the inflation rate will be cut in half due to the halving. Ultimately, this drop in the coin’s inflation will take a significant amount of selling pressure off the market and could spark a major rally. If that happens perhaps Zcash could end up becoming more competitive with Monero, which is the most valuable privacy coin and is ranked #16 on CoinMarketCap.
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