LTC Block Halving? What’s All That About?
— Litecoin Foundation (@LTCFoundation) July 16, 2019
Are you holding LTC and wondering why the price has been doing some exciting things lately?
There is most definitely a reason for this. It’s the LTC block halving event happening very, very soon. We’re going to get deep into this shortly but first, if you want to track this event down to the second, here’s a great site.
Sure, so what on Earth is LTC block halving?
Halving is essentially when the mining reward is split in two. Halving occurs periodically when a certain amount of blocks have been solved. Miners receive a reward of the crypto they are mining each time they solve a transaction. This is the case for both Bitcoin and Litecoin. Once all of the currency has been mined, this will obviously cease.
Litecoin miners currently receive a reward of 25 LTC each time they (or their machines) solve a transaction. After the halving, they will receive 12.5 LTC per transactions solved.
Does this have any effect on me?
Well no, not really (unless you're a miner) but it does somewhat explain the price movements we’ve been seeing. While for the majority of Kiwis mining currencies is most definitely unsustainable, it is good to understand the fundamentals of this.
Charlie Lee, the creator of Litecoin, recently posted to Twitter with how he sees the impact of the upcoming halving.
As you can see, even after the halving, miners are going to be still in somewhat of a good place as far as that break-even point goes.
Price-wise, Litecoin has seen a great year and has risen by over 300 per cent since January 1st!
If you’re interested in investing in Litecoin, especially at this time, it will pay to take a look at its performance back when the last halving occurred back in August 2015.
coinmarketcap.com is an excellent resource for this as you can go back as far as you like and even customise your view. With the mobile app, you can also keep track of your personal portfolio.
At this time (August 2015), there were also gains of nearly 400%. With that said, there was also a significant drop shortly after, which lasted for quite some time. As always, please remember we cannot and do not offer financial advice of any kind, and we can only educate our customers as best we can.
Was this article of any value? What would you like to see more of? Please do let us know in the comments.
Disclaimer: The above references an opinion and is for informational purposes only. Do not take this as personalised financial or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.
Last updated: 01/08/2019