Litecoin’s Charlie Lee Says 2020’s Block Halving of BTC And LTC Won’t Affect Their Prices
Charlie Lee, the founder of Litecoin has been one of the central figures in the crypto community for a long time. He recently sat down for an interview with CryptoInsier where he discussed many pressing issues not only around Litecoin but also across the entire crypto ecosystem.
When asked about the halving of the mining rewards for Litecoin in 2019, Lee said:
“It’s hard to predict the price, like the last block halving for Litecoin didn’t really affect the price. I don’t really believe that halving has any effect on the price, I think it should be already priced in, people already know the schedule of the creation of Litecoin and Bitcoin, Litecoin follows Bitcoin, every 4 years… So, that should agree with pricing, I think it could lead to a self-fulfilling prophecy which people think that’s going to help price, so they buy, which if everyone does that, then how would the price go up? So, that could happen, there is a small potential where miners could be not selling, when the halving happens, so if the miners believe in the coin and they are mining the coins, are potentially at loss, after the halving, they will still mine and not sell and that would remove some selling pressure on the market, which helps the price, so that could help the price a little bit. Other than that, I don’t think it has a huge effect on the price.”
The first ever Litecoin halving took place on August 25, 2015, when the network reached 840,000 blocks; which takes roughly 4 years to reach. When Litecoin reached 840,000 blocks, Litecoin halved its rewards for mining blocks and began rewarding miners 25 coins rather than the original 50 new coins for solving a block.
One major reason Litecoin and other cryptocurrencies halve their block rewards is to keep the activities of miners in check as the cryptocurrency grows over time. Although the income of miners falls by 50 percent whenever it happens, the inflation of the cryptocurrency from the time of the last halving to the next should balance out (in theory at least).