LightCoin Halving 💊 12 5 LTC per Block 💰
On August 5, there was finally a halving of the fourth largest market capitalization coin – the Litecoin (LTC) coin. 🏦
The long-awaited event occurred at the block 1,680,000 block at 10:16 UTC on Monday, and now miners will receive half as much instead of 25 LTC for mining each subsequent block – only 12.5 LTC. 🔥
One of the most important consequences of reducing the remuneration of miners, of course, is a decrease in inflation, since now the market will receive half the number of coins in the same period of time. Until the “halving” of the miners ’award, 75% of the total available Litecoins were circulating on the market, which is 63 million out of a total 84 million LTC
For each mined block, miners received 25 LTC, which, multiplied by an average of 576 blocks checked every day, meant 14,400 new litecoins issued daily. Thus, at the current price of $ 95 per LTC, the daily “flood” was $ 1.4 million, which corresponds to an annual inflation of 8.7%. This level is much higher than that of bitcoins and other cryptocurrencies.
Now, only 7,200 coins will come into circulation, which, will lead to inflation of 4.35%. A decrease in inflation always has a beneficial effect on price in the long run due to significant drop in supply.
At the same time, many LTC miners will inevitably leave this sector in search of more profitable mining. At the time of the halving, the network was pretty close to the maximum hash achieved in mid-July, when it recorded a maximum hash of 523 TH / s, exceeding the previous record in June.
Due to the increase in prices in anticipation of the expected event associated with the halving, the calculation of the hash rate in the litecoin network and the complexity of mining jumped 200% since the end of December 2019. Since the beginning of this year, the price of LTC has risen significantly from $ 30 in January to $ 120 in June, but has since dropped to about $ 95.
Many investors were sure that the market had long “digested” the positive expectations in connection with a decrease in cryptocurrency emissions and expected either a sideways price movement or even a decrease in the LTC rate. Nevertheless, against the backdrop of a surge in trading volumes, the coin was pumped more than 10%, breaking the $ 100 line.
Further, much will depend on what will happen to the markets in the coming months, so it is very difficult to make a reliable forecast. Litecoin creator Charlie Lee is so far pleased and tweeted the next:
“Litecoin Halving was successful! The coin price has just reached $ 100! Block 1,680,000 was awarded with 12.5 LTC per block. We must come to the next halving in August 2023!”