Litecoin (LTC) Second Block Reward Halving Is 4 Weeks Away, How Will The Market React?
In the season of crypto bloom, Litecoin has managed to stay ahead of most assets when it comes to gaining value. Much of this is owing to the upcoming halving event.
Similar to Bitcoin’s network, miners on Litecoin’s blockchain solve complex math problems and receive LTC as block rewards. The amount of LTC rewarded to the miner for solving the problem is currently equal to 25 LTC.
However, this is bound to change in 27 days from now. The event will slash the block reward in half, meaning that instead of 25 LTC, miners will then begin to receive 12.5 LTC per block. Earlier Justin Sun himself had given details about the event.
Litecoin block halving is in 56 days! https://t.co/EBWbsIUp47
Here are some stats on mining profitability. After halving, miners are still profitable with electricity under 10¢. Many are paying only 5¢ and therefore should keep mining LTC post-halving. (https://t.co/AcQPEjdNtb) pic.twitter.com/VtA9aAv7FS
— Charlie Lee [LTC⚡] (@SatoshiLite) June 10, 2019
It’s natural to think about the price implication of an event of such huge proportion. In theory, when the supply of a certain asset is reduced, while the demand for it remains the same or increases, its price should increase.
However, keep in mind that markets are always forward-facing, meaning that it’s possible that the halving event might already be priced in. Prominent crypto analyst PlanB had spoken about this:
— PlanB (@100trillionUSD) December 18, 2018
Litecoin’s team themselves have anticipated this trend of correlation to Bitcoin, and they say in a blog post:
“Comparatively speaking, if history is anything to go by, we should have already seen an unhealthy vertical spike in price as people FOMO in to capitalize on the event, yet this hasn’t happened. The price has certainly pulled back hard against Bitcoin, sitting at around 0.0108 but has remained steady in dollar terms. It would appear then Litecoin’s next move has become more closely tied to that of Bitcoin as it has been rising and dipping along with it.”
However, the Litecoin team go ahead to warn their customers drawing parable from their last halving event. They go ahead to say that market conditions are much more mature and faith in Bitcoin is higher.