Cryptocurrency

LTC Mining Rewards Have Been Halved; Next Halving will be done in 2023

After reaching the block height of, 680,000 at 10:16 UTC on 5th August, Litecoin (LTC), has halved its crypto rewards. This is a landmark point for the LTC miners given the structural design of the crypto has a pattern to reduce its mining rewards to half in almost every four years. Therefore, after reaching around 840,000 blocks, the mining rewards are reduced to half. 

The main reason behind halving the rewards is to balance the demand in the future. Looking at the prices of the crypto from early 2019, the crypto has actually outperformed BTC. The crypto has made a good impression on market analysts based on its price trajectory. It is always recommended to venture into LTC with long terms goal in mind rather than expecting short term immediate goals.

The time in which one block gets produced on the LTC Network is around two and a half minutes. Therefore, in a day, around 576 blocks are produced. Every new day sees supply of 7,200 LTC coins and the half of the last day’s daily level which comes makes it approximately- 14,400 Litecoins.

Charlie Lee, in an interview last month said the following in the context of supply, demand and market sentiment-

In terms of the price, the halving should be priced in because everyone knows about it since the beginning. But the thing is people kind of expect the price to go up. So a lot of people are buying in because they expect the price to go up and that is kind of a self-fulfilling prophecy. So, because they are buying in, the price does actually, go up.

At the press time, Litecoin’s market rate was 98.04  U.S Dollars with a growth rate of 1.86 percent or 0.00801824 BTC with a growth rate of -2.42 percent.  The market cap of the coin has been 6,174,457,749 USD or 504,993 BTC. In the past 24 hours, the fourth largest crypto coin had the volume of 4,271,500,082 USD or 349,355 BTC. Whereas, the circulating supply of the coin has been 62,980,493 LTC, with the maximum supply of 84,000,000 LTC.

In the first month of this year, the price of the coin was 30 USD and soon it climbed up to 120 USD mark in June. Post-June it has seen a dip and reached 100 USD mark. According to Litecoin’s creator, the cutting of the mining rewards into half should help the dipping of the cryptocurrency. The expected increase in the price after halving can be seen in the good effects on the hash rate computing as well as the mining difficulty. Both of these aspects have spiked up by 200 percent.

On the other hand, the halving of the mining rewards of LTC will also affect participation in the mining of the crypto. This will be so because the mining devices will need to work harder to create enough LTC to balance the electricity costs.

On the other hand, BTSE launched LTC Futures Trading, yesterday. BTSE is a currency and futures trading platform. Now, the traders can perform LTC futures transactions and also check the margins with fiat currency and cryptocurrency on BTSE.

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Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.
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