Litecoin’s Third Halving Event
Litecoin’s halving event is a significant milestone in the history of the cryptocurrency. It is a process that reduces the number of new coins that are created and distributed to the miners who secure the network. The halving event occurs every 840,000 blocks, which is roughly every four years. The next Litecoin halving is expected to happen on August 2, 2023 (a few hours from now).
The purpose of the halving event is to control the inflation rate of Litecoin and ensure its scarcity and value. Litecoin has a fixed maximum supply of 84 million coins, which means that once all the coins are mined, no more new coins can be created. The halving event slows down the rate of coin creation and extends the mining period until the year 2142. By reducing the supply of new coins, the halving event also increases the demand and price of Litecoin, as long as there is enough interest and adoption in the market.
In light of this, investors are buying more LTC because these events have been known to trigger significant increases in price, and the next halving is expected to do the same.”
Related: Whale Alert: Litecoin Whales Purchase $77 Million Worth of LTC as Halving Event Approaches
The halving event also affects the profitability and security of the miners who validate transactions and generate new blocks on the Litecoin network. The halving event cuts the block reward that miners receive for their work by half. For example, before the last halving in 2019, miners received 25 LTC per block. After the halving, they received 12.5 LTC per block. The next halving will reduce the block reward to 6.25 LTC per block. This means that miners will earn less revenue from mining unless the price of Litecoin increases enough to compensate for the lower reward.
Price is currently on a gradual move upward and will most likely surge when the event takes place. We and other analysts will be sure to keep our eyes down and take down updates in price.
It is worthy of note, however, that when the halving event occurs, some miners may decide to stop mining or switch to another more profitable coin, which can cause a temporary drop in the hash rate and difficulty. This can make the network less secure and more vulnerable to attacks until the difficulty adjusts and stabilizes. Waiting and patience are traditional to trading after all. We must first wait for confirmation that the speculated result has taken effect before moving in for profit. The price should at least break the resistance level at $104.99 or the swing high at $114 to confirm a true surge in the price.
Featured image: TheCoinRepublic
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Dominic Jubemi is primarily into legal practice. However, he has taken interest in building and grooming fundamental skills in FX and Crypto trading, audio engineering and in the nearest future, fiction writing.
