Litecoin halving complete! Litcoin halving is when the block reward for miners get halved. Litecoin, the fourth largest cryptocurrency by market capitalization, successfully halved today.
The Litecoin halving triggered at 1,680,000 on Monday. The event is a big deal, especially for miners, as litecoin is designed to half mining rewards by half every 840,000 blocks. This is roughly 4 years.
This halving has reduced the mining reward for Litecoin from 25 to 12.5 LTC.
We can now expect to see roughly 7,200 LTC every 24 hours, down from 14,400 before the halving.
There are about 21 million LTC block mining rewards left to mine. At today’s prices, that results in $2 billion in today’s monies.
LTC has seen a dramatic uptick in price, going from around $30 in January to as much as $120 in June. It’s settled around $100.00.
Along with an uptick in price, the halving has resulted in hash rate computing and mining difficulty Ac both jumped by 200% since the end of December 2018.
The halving will likely affect mining interest – current miners will have a tougher time generating enough LTC to offset electricity cost.
This includes BitMain’w Antminer L3, a very popular Litecoin miner. Before the halving, The miner’s profitability was already at less than 50%.
This is what our own Kurt Wuckert Jr. Has to say about the LTC halving.
“Halvenings are looked at widely in the cryptosphere as longer term bullish indicators under the assumption that with the emitted supply cutting in half, and demand remaining at least constant, the price should raise the fiat value of the block reward subsidy and compensate for the reduction in mining profitability.
But that assumes that miners should be mining for the subsidy at all. In the short term, they should be, but in the longterm, they need to create incentives to bring in more fees to pay for security once the block reward becomes too small to sustain the network.
With LTC, we have seen a parabolic rise in value this year, which bodes well in the short term. However, the longterm trend of absorbing the valuable transactions from its main competitors has been painfully flat while BCH, BSV and Dash have all grown!
Litecoin is going to need more transactions on network as these halvenings tick away like a time bomb, or there will cease to be a Litecoin.”