The Mining Power of Litecoin Has Went Down Over 25% Since The LTC Block Halving
Litecoin (LTC) miners are facing problems recently. Many of them have decided to unplug their mining devices after the most recent halving happened. Data from the LTC network shows that the difficulty is going down because of that. It went from 15.9 million to 11.4 million one day after the halving.
The event named as halving, in case you are wondering, is a periodic halve in the rewards offered per block. This mechanism is present in most blockchains and it happens to regulate inflation and minimize it.
Litecoin’s mining difficulty is adjusted every 2,016 blocks (around four days). This is done to make the intervals between blocks always be around 2.5 minutes. Now, after a drop of 28% in the difficulty, the token is seeing its lowest difficulty since April.
Most analysts believe that the rewards per block going from 25 LTC to 12.5 LTC without a significant increase in price are the main reason why miners are abandoning the game.
If they want to maintain their profits in a situation such as this one, they do not have a lot of choices other than upgrading their equipment. In some cases, it can become unprofitable to mine after the halving.
Bitcoin generally sees spikes in its price after halvings, but Litecoin is yet to have the same luck. In fact, the prices of LTC actually went down after the event. Before the halving they were around $93 USD and are $74 USD now.
According to data taken from popular mining pools such as InnoSilicon and FusionSilicon, miners only have profitability of 10 to 20% now, a considerable decrease. Will more miners leave the scene? Probably.