What to Expect From Litecoin Halving?
The halving date for one of the oldest cryptocurrencies, Litecoin (LTC), is approaching — it should take place on August 2, 2023.
Halving, or block reward reduction, is a very important event in the crypto space. This happens when the number of new coins issued for each found block is reduced by half. Thus, halving is a way to control inflation and maintain the value of cryptocurrency. The halving date for one of the oldest cryptocurrencies, Litecoin (LTC), is approaching — it should take place on August 2, 2023.
Halving in cryptocurrencies
Why is halving considered to be such an important thing? Because it has a direct impact on the rewards of miners who earn cryptocurrency for verifying transactions and adding blocks to the blockchain. The decrease in block reward means that miners will earn less cryptocurrency for their work.
The process of halving can happen with all cryptocurrencies that are based on Proof-of-Work (PoW) consensus. This includes, for instance, Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH), and others.
Halving positively influences the cryptocurrency. It can lead to a decrease of the cryptocurrency in the market, which helps to increase its value. This is what happened to BTC in 2016 and 2020 — a decrease in the block reward caused an increase in its value.
Moreover, halving motivates miners to do their job and to look for new and more efficient ways to do it, which may lead to the development of technology and new innovations in the crypto industry.
Litecoin Halving
Halving helps to reduce inflation. When it comes to Litecoin, the halving process occurs every 840,000 blocks. It happens about once every four years. Each time, the reward was halved: in 2011, miners received 50 LTC per block, in 2015–25 LTC, and in 2019–12.5 LTC.
In the traditional economic system, the government can print money in different amounts to keep inflation down. In the cryptocurrency market, this is impossible, so halving has become the only way to contain the depreciation of coins. This process will continue until the miners receive all the coins — 84 million. According to rough calculations, this will happen in 2140.
How will halving affect the rate?
In 2015 and 2019, Litecoin behaved in the same way — a few months before the planned halving, the rate rose sharply, but then also fell sharply. Some experts suggest that history may repeat itself in 2023. For example, according to TradingView, before its first halving, LTC bottomed in just 122 days, then rose by 820%, and after the halving added 14200%. In 2019, the picture was not much different — the coin bottomed out in 243 days.
Conclusion
Halving is an event that can not only affect the further growth dynamics of the Litecoin rate but also be one of the key factors of the long-term stability and development prospects of the project. After the halving, inflation in the network decreases, and if the demand for the coin remains high — an increase in its price may occur.
If you want to learn more interesting facts about crypto then don’t forget to check out our blog! You might like our articles “Blockchain Types Explained” and “Top 5 Crypto Trading Strategies”.
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Originally published on our Publish0x blog.
