Produced by Odaily
Translator | Wang Ye
Editor | Lu Xiaoming
Produced by Odaily
Translator | Wang Ye
Editor | Lu Xiaoming
According to the latest data from Litecoinblockhalf, according to the current block production speed, Litecoin is expected to be halved at around 10 am on August 6, 2019.
The halving of block rewards will lead to an increase in mining costs and a halving of output, which will obviously support the price of Litecoin and its intrinsic value.
The price trend of LTC in the past month, the data comes from CoinMarketCap
secondary title
LTC price doubled in the first quarter of this year
text
Block reward halving is a mechanism set by cryptocurrency. The so-called mining of cryptocurrency is actually to use computing equipment to package the transaction information of cryptocurrency into blocks. The blocks containing all transaction information are linked in chronological order. Together is the blockchain (blockchain). Miners are those who contribute computing equipment to pack blocks. Every time miners pack a block, the blockchain network will reward miners with a certain amount of cryptocurrency to reward miners to attract more people to maintain the block. Stable operation of the block chain network.
When the number of blocks in the blockchain network is packaged to a certain amount, miners who package subsequent blocks can only receive half of the previous rewards. This mechanism is a common block reward halving mechanism in cryptocurrency mining. The halving of the block reward means that the production of the cryptocurrency begins to decrease, which means that the cryptocurrency becomes rarer. Often, the halving of block rewards will directly bring about a huge increase in the price of cryptocurrencies. In 2017, there was a big bull market for Bitcoin, and Bitcoin started a new round of block reward halving in 2016.
Omkar Godbole, an analyst at Coindesk, said that although LTC may see buying in the next few days, since the market has already digested the good news of LTC halving in advance in the past 6 months, the price of LTC should not change again as the halving date approaches. There was a sharp rise.
Essentially, LTC entered a bull market long before BTC’s trend shift from bears to bulls, with BTC surging above key resistance at $4,236 on April 2. LTC continued to hit highs above $140 in June of this year before falling back to $80 earlier this month.
Will history repeat itself?
Non-price indicators for LTC have also risen sharply since mid-December, setting new highs several times over the past few months. For example, according to data from bitinfocharts.com, on July 14, the hash value (computing power) of miners’ mining rose to 523.81/s, up 258% from the low point of 146.21/s in December 2018.
secondary title
Will history repeat itself?
Litecoin was born in 2011. It was one of the "altcoins" derived from Bitcoin. Its mining mechanism and other models are highly consistent with Bitcoin.
August 2019 was the second halving of LTC, and LTC rose 100% in the first quarter of this year, rising to a high above $145 in June. However, the recent drop to $80 is reminiscent of price action in the months leading up to August 25, 2015.
What’s more, after the reward halving, the price of LTC was still hovering in a tight range between $2.50 and $5.50, with no strong buying until April 2017.
text
If history is any guide, LTC could be trending sideways after next week’s halving unless BTC moves towards new highs of $20,000.
secondary title
Miners may be less motivated to mine after the halving
Miner mining profitability may drop by 50% along with block rewards, since mining difficulty rarely adjusts immediately. Therefore, some miners may switch to other coins.
