Yesterday, Charlie Lee, the creator of Litecoin, made an announcement which caught a lot of attention. In a Twitter post, he said that in the coming four days he would be found cutting Litecoin mining rewards into half. Why is this special? Well, it is special because it will take place for the first time in the past four years. According to Litecoin’s creator, this should help the dipping of the cryptocurrency. He also announced that he would do the same cutting into half in 2023 as well.
I'm announcing today that in 4 days, I will be cutting Litecoin mining rewards in half for the first time in 4 years. This should help prevent the possibility of a cryptocurrency downturn. 👍
And I will cut it in half again in 2023! 😮 https://t.co/YmUIHx5fLi
— Charlie Lee [LTC⚡] (@SatoshiLite) August 1, 2019
Regarding the supply, demand, and market sentiment subject, in an interview, last month, the creator of Litecoin said,
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.
The fourth-largest crypto coin has been reporting good growth in the last one day. The growth rate has been 5.31 percent.
The tweet from US President Donald Trump against cryptocurrency had an adverse effect on the performance of Bitcoin. Charlie Lee, the creator of Litecoin (LTC), on the other hand, seems to be quite excited about the event, despite the otherwise reaction from the community. It has been seen that some market analysts were expecting that the crypto coin (LTC) will soon surpass $200 mark in the next couple of months, despite the struggling time of the altcoins otherwise.
Why LTC is hopeful is because it uses Scrypt algorithm, which may be the source of optimism for the crypto. Bitcoin, on the other hand, uses the SHA-256 algorithm. Lee had the foresightedness to take this path in order to tackle parallel processing challenges. But as with any other success story, soon many parallel companies follow the path to populate the track; the same is happening with LTC too. For instance, platforms such as Zeus, have started to use Scrypt ASICs, which may have the potential to affect the objective of LTC.
Lee has been a visionary. But following anyone blindly is always cautioned. It was the same person who once due to the price reaching its all-time high, sold off all his Litecoin tokens. Therefore, we would advise following his trajectory with care and as per your own capacity. There are people who think that he aims for profit primarily.
As of now, we see strong friction for LTC to crack the mark of 100 U.S. Dollars. Overall, the entire altcoin market will need to gain momentum in the market to attain a stable market rate. In this circumstance too, LTC has managed to gain a boost that exceeds 5 percent within the last 24 hours, which is a source of hope for many.
Earlier, last month too, in an interview, Lee said,
When the mining rewards get cut in half, some miners will not be profitable and they will shut off their machine. If a big percentage does that, then blocks will slow down for some time. For Litecoin, it is three and a half days before the next change, so possibly like seven days, and then after that, the difficulty will readjust, and everything will be fine.