Litecoin, just like Bitcoin, also halves every four years. Yet, Litecoin has had only one halving yet. The last and the only one took place in 2015 and the following one is only a month away, it will take place around August 6.
Though Litecoin halving has happened only once in history, its results prove that it doesn’t copy Bitcoin at all.
One of the halving aspects that interests everyone, especially cryptocurrency users, is how cryptocurrency’s price will be affected. So, the answer is, when the delivery of a particular product is decreased, whereas the demand stays the same or rises, so the value should technically increase. Nevertheless, it is likely that the halving event might be already affecting the value.
On the LTC halving day, LTC had the value of 0.01272 BTC, but after 150 days of the halving traders watched on their coin tracker how the coin’s value dropped by 35% reaching 0.008189 BTC, and only one year later the value was almost 50% reduced and reached 0.006595 BTC.
The next halving is not expected to be easy in financial issues. History reveals that LTC probably won’t be able to keep its positions strong and stable against Bitcoin, but it will still have a clear impact on the Litecoin participants and the entire network and ecosystem.
On the Litecoin chain, miner profits will be influenced at most. As Bitcoin miners, Litecoin miners also must solve complicated math tasks and get rewards. The halving will reduce miner profits by 50%. For miners, the current amount for solving a task is 25 LTC but it will be reduced from 25 to 12.5 LTC after the process.
As history shows, the first time that the halving took place, the process was like LTC raised by 100%, before halving, the price was $1.5 and, after it, the price was $3. The upcoming halving is expected to have the same effects and improve the Litecoin price.
One more big impact of the halving may be the number of LTC miners. The number will probably go down. This is always more reasonable to expect, but it is also possible that the number will stay the same, stable as such thing happened after the first halving. Nobody can know for sure but by going back we can study LTC work during the previous halving.
The value was examined within the months giving rise to the halving. During June and July was obvious the most noteworthy increase. The value was about $1.6 and it jumped to $7.6 in order before halving their profit reaches 375 percent.
After this incident, Litecoin lost its value by almost sixty percent and stayed in that rank for quite a long time. This incident means that the halving had been priced in before it would take place.
We have to wait to see how Litecoin will perform during and after this halving. If you are interested in cryptocurrency trading and monitoring your crypto funds check out the best cryptocurrency portfolio tracker guide.