Litecoin (LTC) Halving 43 Days Left, Will the Halving Event Affect the Price?

Litecoin (LTC) has outperformed both Bitcoin and Ethereum over the last 30 days. Litecoin halving is about 43 days left, so LTC is outperforming many cryptos lately. Some investors think the halving is pricing in, while others think it could move higher. So which direction can it move?

What is Halving?

What is a block halving event?

As part of Litecoin's coin issuance, miners are rewarded a certain amount of litecoins whenever a block is produced (approximately every 2.5 minutes). When Litecoin first started, 50 litecoins per block were given as a reward to miners. After every 840,000 blocks are mined (approximately every 4 years), the block reward halves and will keep on halving until the block reward per block becomes 0 (approximately by year 2142). As of now, the block reward is 12.5 coins per block and will decrease to 6.25 coins per block post halving.

Who controls the issuance of Litecoin?

The network itself controls the issuance of litecoins, derived by consensus through all Litecoin participants. Ever since Litecoin was first designed, the following consensus rules exist to this day:

• 84,000,000 litecoins to ever be produced
• Target of 2.5-minute block intervals
• Halving event occuring every 840,000 blocks (approximately every 4 years)
• Block reward which starts at 50 and halves continually every halving event until it reaches 0 (approximately by year 2142)

Any change to these parameters requires all Litecoin participants to agree by consensus to approve the change.

The 1st halving event in Litecoin occurred on August 25, 2015 at block height of 840,000. The 2nd halving event occurred on August 5, 2019 at a block height of 1,680,000. The third halving event will occur approximately 43 days later, on August 1 or August 2. I think it is remarkable that the current LTC price is slightly lower than the price at the time of the 2nd halving.

Litecoin (LTC) is currently trading around $76.

Litecoin is one of the oldest cryptocurrencies in the crypto market, with the total number of addresses holding LTC balances exceeding 8.5 million. Halving events in the crypto market often increase the price, otherwise the earnings of miners will decrease significantly.

I think a lot of investors are unaware of the Litecoin halving event so I think the halving event is still not priced in. I think Litecoin may rise in the coming days. Of course, investors will decide in which direction the price will go. This is just my guess. We'll wait and see.

In which direction do you think Litecoin price will move?

This is not investment advice, it is difficult or even impossible to know which direction prices will move in the short term. I am only stating my guess based on current data. You should do your own research before investing.

Posted Using LeoFinance Alpha