Litecoin is one of the hottest altcoins right now and litecoin is preparing itself for its block reward halving. I won’t get into real in-depth explanation here but I will try to explain it as noob-friendly as possible and its impact to the market
What Is Exactly Litecoin Halving?
Litecoin halving is one of the most anticipated events where the number of LTC rewards per block will be halved. At the time of this writing (11 June 2019), 25 LTCs are the rewards that miners will get per block. This year’s halving will see that 25 LTCs get reduced to 12.5 LTCs. The theory here is that the less rewards miners get, we will also see less dumps by miners on the crypto exchanges. Thus, price will pump. Demand > Supply.
When Is The Next Litecoin Halving Then?
Litecoin halving occurs every 840,000 blocks. The next one will be at block 1,680,000. You can check with a good litecoin explorer to see the current block # https://chain.so/ltc
Halving ETA: 6-7 August 2019
What happened with the previous LTC halving?
The previous halving happened on August 25, 2015.
From May 19, 2015 to July 10, 2015, price kept pumping against both BTC and USD. Traders started dumping LTC from the same day of its peak (July 10). Basically, traders started pumping LTC few months prior to the previous halving event and they dumped LTC just one month before the previous halving event.
So, what will happen to the price this time?
Nobody knows but it might look like a self-fulfilling prophecy. When there are enough traders trying to do the same thing, price might pump. So far it’s been pumping for awhile but not as much as I expected. We might still pump a bit further until end of June or early July but I expect a dump prior to the halving event. It’s also possible for LTC to go down in the next 1-2 weeks because some people want to take profit and might want to pump BTC instead (remember that BAKKT will begin testing on July 22)
Either way, LTC itself is always a good long-term hodl as it’s a proven altcoin in terms of price action. Up to you whether you want to trade it for short-term or hodl it for long term
A short background about Litecoin
Just like bitcoin, litecoin is a peer to peer cryptocurrency founded by Charlie Lee. Litecoin was made on Bitcoin protocol as well but it uses a different hashing algorithm. Instead of SHA-256 hash function, Litecoin uses Scrypt.
Typically litecoin has much cheaper transaction fees compared to bitcoin and even to other older P2P coins.
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