The upcoming halving of cryptocurrency Litecoin is good news for miners. Experts and crypto enthusiasts expect that the value of the coin will rise significantly because of it. Which possible factors will probably influence the value of Litecoin because of the halving?
The rising value of Litecoin
Bitcoin is the oldest and largest cryptocurrency, followed by Ethereum, Ripple, Litecoin and Bitcoin Cash. Based on market capitalization Litecoin is currently the fourth largest cryptocurrency. The market capitalization is currently more than 8 billion, but in the volatile crypto market this can always change. However, even during the correction that most cryptocurrencies went through, Litecoin already has a great 2019. Its value increased with more than 200 percent since the beginning of 2019!
What will the effect of the Litecoin halving be?
Crypto investors expect, and hope, that the upcoming halving will lead to a further increase of the value of Litecoin. Perhaps you’re not familiar with the term ‘halving’ and wondering how it can affect the Litecoin price. The blockchain protocol plays an important role, because the halving is a mechanism that is built into it. Bitcoin (BTC) has a mechanism as well. During the halving, the reward for miners is halved to prevent inflation.
Less reward for Litecoin miners
The halving will certainly have an effect on the Litecoin value, since the reward for miners will become 12.5 LTC instead of 25 LTC. Miners are important because they are the market makers. This works really simple actually. If a miner wants to have the same value for his or her work, Litecoin must increase by at least 100 percent. Experts expect that this will probably not happen though. They believe the increase will be about 50 to 60 percent because there’s not going to be so much inflow of new Litecoins, while the demand remains exactly the same.
Decrease of inflow
It can also happen that some people will stop mining because of the fact that the rewards are lower. In that case the inflow will decrease even more, which will have a positive effect on the Litecoin price. So exciting! Investors have to wait until August how the halving will turn out. Some experts are very positive and say that 300 dollars per Litecoin is a real possibility. In that case Litecoin will definitely be one of the most successful cryptocurrencies of this year. Time will tell!