LTC Halving is coming this August. What will be the effects?
Halving - what's that?
Halving is a process of adding new information blocks to the database by miners. It's the effect of cryptocurrency mining. Miners are rewarded for their work and used electricity by getting a certain amount of coins (
cryptocurrency).
The best explanation of this phenomenon may be found on
Binance Academy website:
In the cryptocurrency space, the term halving refers to a process that reduces the issuance rate of new coins. More precisely, halving is the periodical reduction of the block subsidy provided to miners. The halving ensures that a crypto asset will follow a steady issuance rate until its maximum supply is eventually reached.
https://www.binance.vision/glossary/halving
In
Bitcoin's case,
halving takes place every four years, and the next will probably happen in May 2020. When it comes to
Litecoin, its last
halving was in August 2015, and the next will take place in August 2019. The reward for
Litecoin mining will be 12.5
LTC.
Litecoin's current situation on the market
LTC's rate is (today, on July 29th) a little over $90. In terms of
market capitalization (market cap), it's the fourth biggest
cryptocurrency in the world. Charlie Lee,
Litecoin's creator, expects great market shock, which may affect the prices of all virtual currencies.
Other specialists are being more pessimistic. They expect
Litecoin's inevitable fall, meaning the price fall to a mere $60. Others have noted, that before previous
halvings,
LTC had registered an increase in value, and the process hadn't affected its later price in any way.
Unlike 2017, this year
Bitcoin's price won't have any influence on altcoins.
BTC's this year all-high is almost $14 000, but other
cryptocurrencies haven't registered such high growth.
