Litecoin halving has arrived

in bitcoin •  18 days ago 

This is it guys, the Litecoin halving that has been anticipated for months has come and gone. The next one will be in 1457 days, or around August 2023. This is a built in event that occurs every 840 000 blocks. Price had a nice little pump today to celebrate the event, of over 10%, but then settled back down to the mean just below $100 at the time of writing.
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This was so well anticipated that - as happened at the previous #Litecoin halving which is already baked into the price action - the pump happened a while ago already, just over six weeks ago, on 22 June. That was the day LTC peaked just below $150. Since then it dropped to $80 and is now back up at close to $100. If we carry on like past history shows, then price should trade sideways for a while before beginning to climb once more.

In total 75% of all LTC, or around 63 million of the 84 million have now been mined. The well known silver to Bitcoin’s gold has come a long way, launched as a fork of Bitcoin itself, back in October 2011 by ex Google employee Charlie Lee. He also worked as Engineering Director at Coinbase, one of the more popular exchanges globally.

The decreased block generation time of only 2.5 minutes, along with the increased maximum number of tokens ever to be mined make it a token useful token, though still a Proof of Work (PoW) coin, mined like Bitcoin. Curiously LTC is more expensive to mine, since it uses not SHA-256, like Bitcoin, but rather Scrypt as a mining algorithm. Other scrypt-based altcoins include Doge (much interlinked with LTC), Bitconnect and some other lesser known tokens.

Mining equipment is more complex and thus pricier at this stage. So how are the miners handling the halving today? Miners will receive half as much reward for mining LTC, which now provides them with 12.5 LTC per block mined. So theoretically price should begin to climb once again soon, due to the new scarcity.

Halvings like this occur in Bitcoin too, the next scheduled for 2020, not long to go now. It is an interesting phenomena, written into the code of the coin. Satoshi Nakamoto, the Bitcoin founder, added it to keep the balance between miners and price, and traders of course. The math is irrefutable. Less coin emerging will increase price if demand stays the same. It’s a fail-safe built into the system every few thousand blocks produced. Long term vision is what has allowed these cryptocurrencies to survive. Litecoin is still in the top five, having just dropped from number four place by market cap, and will probably remain there for some time to come.

All the altcoins are currently falling behind Bitcoin is price growth this year so far. Litecoin did really well until about six weeks ago when it stalled, but I’m bullish on LTC going back into a bull trend, since it closely follows Bitcoin in price action, whether up or down. The recent price gain this week is only 7% compared to Bitcoin’s 22%, so it looks like the king of coins is pulling ahead of the pack, and at this rate the pack may never be able to catch up.

We are all still awaiting the now mythic altcoin season but rumours are starting to circulate that it may have been cancelled. Even though LTC has been designed to be faster than BTC in production and transaction speed, still it languishes in the shadow of its older brother. Will the altcoins ever regain their Bitcoin value? It certainly doesn’t look like it. I have my doubts. So far this year when Bitcoin climbed in price, it left the altcoins behind. And when it fell in price, it tended to drag the altcoins down with it, so it was a no-win situation for the altcoins in general, bar a few exceptions. The hope is that if Bitcoin can trade range bound in a sideways movement for a few weeks, the alts might have a chance to pump higher in BTC value, though it all depends on the BTC price action. And since BTC is mostly just going parabolic nowadays, it looks like the king is dominating the show again.

BTC dominance is at 67,5% according to https://coinpaprika.com/ today, with $209 billion in daily volume, while LTC is way behind at a mere $6 billion. They are worlds apart in this regard, though LTC is in tight competition with Bitcoin Cash, another hard fork of Bitcoin, for fourth place. What does Bitcoin have that none other can compete with? It has first mover advantage, and name popularity perhaps. Other alts are certainly faster, cheaper to transact and some are even more private, but somehow Bitcoin stands head and shoulders above the rest.

This could be a sign of the shape of things to come in the crypto industry, where Ethereum, Litecoin and all the others are left in the dust of the original one and only Bitcoin. It mostly depends on the miners of course, and with Litecoin being pricier to mine, it could hint at why Bitcoin is outperforming it. Many miners of LTC may have to shut down their rigs now with the halving of their rewards...for a while at least. We will have to watch this closely. Less miners means less coins produced and therefore price rises, which may then bring the miners back into the business. So it can all sort itself out in time, we hope.

Beside that though, we need to remember that market sentiment is one of the biggest drivers in crypto too. And once the mining hash rate drops, the mining will go through its own difficulty adjustment and smaller miners will be able to resume operations once again. As a more durable token for actual spending or transacting and moving, LTC is here to stay along with Bitcoin, so bag hodlers need not worry too much. Price will maintain and grow once more as production normalizes on the blockchain.

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nice, I really enjoyed this write up. I've been long LTC since I got in a few years ago. This was my first halving though and it seemed pretty uneventful considering all of the hype.

This was a good educational post again. Thanks a lot and good luck!

I didn't realize 75% of LTC had been mined already. That makes me wonder what will happen to price as we approach that 100%. I suspect that once it hits 90%, price might break away from the BTC price as scarcity with be the main driver. But what will happen when it hits 100%? It should then stabilize and the community can focus on adoption.

After the cryptos, including Bitcoin, hit 100% volume, the only thing that can drive price at that point will be use cases. Either the coins will to be used as currency, in which case market activity will determine price, or they'll just sit in perpetuity. Mass adoption of one crypto will drive the value of all other cryptos down. I think it behooves the entire crypto community to ensure that doesn't happen. There needs to be competition in crypto usage as currency.

Yes price should even out or stabilize once all the coins are mined presumably. Then Bitcoin or Litecoin can become a more reliable means of exchange and adoption can increase. They truly will then be the digital gold and silver.

Love your insights as they always provide some optimism and realistic expectations of what's to come and what has been.

Still waiting for that pay day but BTC seems to have climbed... Guess that drop to 7500 won't be happening 🤔

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We might be waiting in vain for BTC to drop by the looks of it, much to my dismay. It got as low as the upper 9k region and that was it. Impossible to predict at this stage. Looks like the bull run is carrying price upward now. Might be better to just buy in and hope for the best. Experts buy all the time if they have extra fiat. They just buy every month and keep stacking regardless of price apparently, since they are long term bullish.

Yea you may be right, didn't seem to dip too low at all actually! When the regular pay comes in, I'll probably keep a small amount to just buy each week over the long run. I'm thinking years with it all and BTC is going to be king I feel. It's just a case of picking the right alt as well... I'm still long term hopeful on STEEM but it's sliding down the ranks isn't it really? In the 80s now. I was going to buy some STEEM as well

STEEM is such a concern in my mind at the moment, seeing its daily decline over the past months. All the altcoins are struggling and you are brave to buy into them at the moment, with the high risk.

I don't think we've seen the bottom for steem either. Some are tipping it to go to $0.01 or less in a few months before it bottoms out. I will probably just do what you said a few comments ago about just buying little bits and pieces of BTC each month with whatever spare cash I have.

Probably the best thing to do is keep earning through posting and get all the tokens with steem engine. I haven't spent any money on the platform so if it goes down I wouldn't have lost any thing and I am spread wide enough with the legacy social media sites. I'm still hopeful because of all the development that's going on and continues to go on, despite the price dropping

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Good attitude.

Nice work :)

This was so well anticipated that - as happened at the previous #Litecoin halving which is already baked into the price action

Yeah it certainly looks that way, but as you say, a little bit of sideways action and then a climb seem the most obvious route going forward.

Thanks you, hoping LTC will climb back up though it's testing my patience lol, which is the crucial ingredient apparently.

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Thank you, much appreciated Leo. Happy birthmonth.