Halving is a common term used in cryptocurrency mining. In terms of the basic terms, halving is the process by which it sees the reduction of mining rewards of the digital assets into 50%. It is an overall process that is designed to control the supply and at the same time, reduce the inflation of the digital currencies which are using the Proof-of-Work.
With the upcoming LTC Litecoin halving, it has been said that it is expected to happen on August 8, 2019. Nevertheless, it has been said that the second date is still tentative and could happen before the expected date depending on the rate at which blocks are added to the LTC blockchain. To the digital currency investors, halving events like these can both have the positive and the negative effects on the miners. Nevertheless, everyone is still excited as to what will going to happen on that particular date.
What are the Reasons for LTC Litecoin Halving?
Most of the miners are curious about this activity. Basically, one of the main reasons why LTC Litecoin and other cryptocurrencies are halved is to keep the activities of the miners in check regarding the fact that cryptocurrencies are growing over time.
Having known the fact that each income of the miners falls by 50%, this is also done in order to control the inflation of the digital currency from the time of the last halving. It has been learned that most of the digital asset analyst is predicting that the LTC Litecoin would make a major record growth after the halving.
However, they are still not sure of what could possibly happen after this Litecoin halves in a block on the upcoming August 8, 2019 date. The analyst will still believe that the Litecoin will continue to be of use after the said event.
The Impact of LTC Litecoin Halving in 2019
The upcoming Litecoin halving is going to happen in just a couple of months away. While it is true that it decreases the supply leads to high price, it is still believed that more and more investors will have to price in the said block reward event as they predict that its supply might fall in the near future.
There will also tendencies that happen wherein some miners would exit from the market especially when they notice that their computing power won’t make it with the others. If this happens, that certain difficulty will decrease and the price will tend to decline.
With the upcoming schedule of the LTC Litecoin halving, there are certain impacts that analysts believed would happen. There is an impact that could happen on the price of the Litecoin. It has been said that whenever new coins are being generated for mining, the tendencies would have that selling pressure since miners would basically need to cash out their salaries and pay for their bills.
This means that the price of the Litecoin can basically go down if considering that no further demand will happen. Meanwhile, whenever the block reward is halved, the selling pressure will be lesser, too. Further, when the inflation rate reduces drastically after the halving activity, there is really a tendency for the pricing to be affected.
Meanwhile, it is also believed that the upcoming event would give another impact to the miners. Whenever the computational power increases, there is a tendency for the miners to find it hard to compete and will eventually choose to exit from the market. This has been the common problem which happened in the mining adjustment problem the last time the LTC Litecoin had its halving.
Further, apart from the miners, mining pools are also believed to be affected by this impact. Whenever the LTC Litecoin gets a higher value, the pool owners and even the retail investors would scramble in buying their machine. Hence, the halving would turn out to have the profitability of the Litecoin mining smaller and would make the profit more uncertain to happen.
The LTC Litecoin Halving to Happen in 70 Days
Strong momentum is currently evident as the LTC Litecoin halving happens 70 days from now. This event is believed to effectively increase scarcity and decrease inflation at the same time. This is the time when the Litecoin becomes a lot valuable to the investors.
It is during this time where investors will be able to see that the supply will drop correlatedly with an increase in the demand that is believed to have an impact on its pricing. The LTC has also seen an 18% surge this year.
Over the years, the Litecoin has been known as the stalwarts of the cryptocurrency community. It has been around in the market for the past eight years since it was launched in 2011 and it has survived many bear markets during this time.
This year, analysts believe that LTC Litecoin will make a good mark with an epic 20 percent. This means outperforming other huge digital currencies, including the Bitcoin. The Litecoin is reportedly trading at a new high in 2019 and it has been known that the highest it has been was in June 2018.
With the upcoming halving event, it is believed that bull runs are expected to happen prior to the said activity. There are still ten weeks left and this event could even send the LTC in an even higher value. Most of the analysts have been taken their eyes on charts and would definitely agree that this Litecoin will continue to trade with a higher value as the halving event finally approaches.
Meanwhile, the next few days will be a lot critical for the investors as days become shorter before the Litecoin halving. Litecoin was already making a good name as the best performing digital currencies on the market yesterday. It has recorded a staggering 31% increase over the course in just a couple of hours.
Overall, the waiting is something that exists the traders and miners at the same time. Stay tuned and keep yourself updated as to what’s going to happen in the next couple of days!