- By Pierre-Alexandre
July 30th, 2019
On August 5, Litecoin is scheduled to undergo an event called ‘halving’. Here’s everything you need to know about it and how will it impact the pricing.
The time for which crypto investors and Litecoin enthusiasts have been waiting for is ultimately here. The fourth-largest cryptocurrency by market cap is all set to undergo the ‘halving’ event as per the scheduled date next week on August 5, 2019.
In the anticipation of the Litecoin halving event, the cryptocurrency performed exceptionally well since the beginning of 2019. Litecoin surged over 450% from $30 going all the way to hitting its 2019-high of $140. This massive bull run was followed with some corrective action and LTC is currently trading at a price of $90 with a market cap of $5.6 billion.
So, let us take a look at what is Litecoin halving and how will it affect the LTC price ahead.
Understanding Litecoin Halving
Inspired from Bitcoin (BTC), former Google employee and Litecoin founder Charlie Lee created this cryptocurrency back in 2011. Just like Bitcoin, the Litecoin network also follows the Proof-of-Work (PoW) consensus model wherein the miners add new blocks to the Litecoin blockchain and are also responsible for processing the transactions.
The miners use high-end hardware to mine new blocks and provided security to the security. In return, these miners are rewarded and incentivized with LTC tokens. Currently, for each new block mined, the Litecoin miners receive 25 LTC tokens.
Litecoin halving is a program featured into the LTC blockchain that after every 840,000 news blocks mined, the reward for miner reduces to half. Thus, after the upcoming halving event on August 5, the LTC miners will receive 12.5 LTC tokens for each block mined. The Litecoin halving event usually takes place every four years.
Here is what Litecoin founder Charlie Lee has to say about Litecoin halving:
Litecoin mining reward halves in approximately 6 days!— Charlie Lee [LTC⚡] (@SatoshiLite) July 30, 2019
To follow the halving, check out the Litecoin Halving countdown: https://t.co/EBWbsIUp47@ByteTree has an informative post on what exactly is the Litecoin halving. https://t.co/RoFSLaOgs1
Earlier this month during an interview with Australian crypto news site Mickey, Lee said that miners might have to run out of business after the upcoming halving event. Lee said:
“When the mining rewards get cut in half, some miners will not be profitable and they will shut off their machine. If a big percentage does that, then blocks will slow down for some time. For litecoin it’s three and a half days before the next change, so possibly like seven days of slower blocks, and then after that, the difficulty will readjust and everything will be fine.”
Just a week before the LTC halving, Charlie Lee has once again stoked controversy talking about the eight-year-old Instamine issue on Monday, July 29. Lee later deleted the tweet but already grabbed the attention of the crypto community.
Instamine basically refers to the event of distributing the crypto coins in an unfair and uneven manner. It involves the release of disproportionate amounts of crypto tokens to the investors and miners. Charlie Lee has been earlier criticized for poor handling of the ‘instamine phase’ during the early days of Litecoin launch.
How Will Litecoin Halving Effect Its Price?
Litecoin is considered as an inflationary scheme. After the halving event, the Litecoin inflation will be reduced to half. Currently, the LTC inflation is at 8.72% and this will dip to 4.26% after halving.
Now, this tightening of supply with the halving event usually acts as a catalyst to boost the price of the cryptocurrency. Lets us take a look into what some of the experts from the crypto industry think of the upcoming Litecoin halving event.
Popular crypto trader ‘Crypto Dog’ is all bullish about the LTC halving and expects the Litecoin price to shoot ahead from the current levels.
$LTC / $BTC still looking good to me. I bought more spot #litecoin today at $92, yesterday at $89, and will continue to buy more incrementally for the next couple days.— The Crypto Dog📈 (@TheCryptoDog) July 24, 2019
You don't have to make this trading stuff complicated. Pull a @VentureCoinist and take it slow 🐢 pic.twitter.com/83o05gPGEq
Similarly, ‘Crypto Capital Venture’ thinks that Litecoin has formed a strong base above $85 and it’s all set to breach its 2019-high of $150.
Another week of Litecoin support above .786 around $85 is just what LTC needs for higher high above $150— Crypto Capital Venture ⚡ (@cryptorecruitr) July 27, 2019
This next week into the halving will be insane pic.twitter.com/TUbU9kwQcA
So $LTC is now currently under a week until halvening....— TheCryptoCactus (@TheCryptoCactus) July 29, 2019
Let's be honest, this is very bullish but last time this happened price consolidated for one year before seeing that huge runup so keep emotions in check...
People will sell if they don't get instant returns in 7 days.
last time back in 2015 as well we have an entire red month before LTC halving— Crypto White Walker (@cryptowhitewalk) July 30, 2019
same has happened this time as well
things start heating up next week with flash pumps across board inlast week of August imo
In the last month, our LTC/USD Technical score has dropped from the very bullish to the bearish zone: