What is the Litecoin (LTC) halving & how will it affect the LTC price?
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This cryptocurrency article covers the Litecoin halving and explains exactly how this big event is likely to effect the LTC price.
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It is almost time for the next Litecoin halving. This may have a major impact on the price of this cryptocurrency and those who plan on trading this coin, definitely needs to consider this into their plans.
This short article covers the Litecoin halving and gives you a reader a brief understanding thereof.
What do we mean when we refer to a coin undergoing halving
Halving is a pretty simple term used in the cryptocurrency space. It basically means that the mining reward that is paid out to miners after they had successfully mined a transaction block is halved. For example, currently, from the time of writing this article (2019/07/04), the block reward for Litecoin is 25 Litecoins. Thus, after halving occurs, the block reward will be reduced to 12.5 coins per block. For Litecoin specifically, this is said to happen every 4 years and the next halving of the Litecoin network is anticipated to take place on August 5th, 2019.
The reason for halving is to limit the total supply of coins ever to be in existence.
What is Litecoin halving?
Litecoin halving is the event where the number of generated Litecoin rewards per block will be halved (divided by 2).
The total number of Litecoin mined by miners per block will reduce from 25 to 12.5 LTC in the next Litecoin halving.
The number of Litecoin found per block will become more scarce and this halving reward ensures that Litecoin total supply will reach 84 million.
When is the next Litecoin Halving?
Block #1,680,000 (estimated around Aug 7th, 2019)
When was the last Litecoin Halving?
Block #840,000 (August 25th, 2015)
(Litecoin block reward went from 50 LTC to 25 LTC)
What is the effect of halving on Litecoin
Halving in the crypto market can be seen as a very positive occurrence, as inflation slows down on the price of the coin, due to less coins being supplied to the market. This, in turn, leads to higher demands of the coin, making it more valuable.
Conclusion
The next Litecoin (LTC) will more than likely have a positive impact on the Litecoin (LTC) price. As not only will the scarcity and rareness of LTC increase but the hype and attention around the halving will likely draw new investors to buy LTC, in turn rising prices.
Halvings are an ingenious invention by no other than the infamous inventor of Bitcoin (BTC) Satoshi Nakamoto. It keeps the supply of cryptocurrencies such as Bitcoin, Litecoin and Dash fixed. Unlike Fiat currencies control by banks that can print an unlimited supply of currency at any time, creating inflation.
After reading this short article, you as reader hopefully have a better understanding of what the term halving means, know when the next Litecoin halving is and how it will affect most people in the Litecoin space and intern the price.
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