Litecoin (LTC) Will Have another Halving in 2019: Block Rewards Will Be Reduced to 12.5
The last time Litecoin network went through halving was four years after the hard fork from Bitcoin, back in 2015.
Halving is a process that is most probably of the greatest concern for miners, as halving affects the number of mining rewards. The process of halving involves the cutting of mining rewards by half, thus the name, which means that the rewards that miners are getting for validating transactions and creating blocks would be reduced by -50%.
The process of halving is inherited from the Bitcoin code base which has the same repetition of the mentioned process every 4 years, where the rewards for mining are being reduced.
The last time Litecoin halving took place was back in 2015 when the block reward was reduced from 50 to 25, which means that the next halving will be cut to 12.5 in rewards.
Given the fact that the rewards are reducing with an already reduced price of the heavily declining LTC, now ranked as the 9th largest cryptocurrency by its market cap, the reduction based on halving may affect the miners of LTC, however, it is less likely that halving could affect the network.
When Will the Next Litecoin (LTC) Halving Take Place?
Halving is a process which involves cutting the mining rewards in half. Halving occurs at every 840,000 blocks, which means that there will be one halving at every four years for Litecoin.
This is the case with Bitcoin as well, so naturally, Litecoin has the same code base, given the fact that LTC represents the first fork derived from the Bitcoin main chain.
The last halving reduced the reward from 50 to 25 coins, and the next should bring 12.5 in rewards for miners of LTC.
Although the halving process won’t in any way affect the network, it is said that it could affect certain groups of miners that would find the rewards of 12.5 coins too little to support the mining expenses.
At the same time, the price of Litecoin is significantly reduced since the beginning of 2018, and it may also continue with dipping within mostly bear trends in 2019 as well.
For now, Litecoin is having a hard time recovering, trading below the value of 30$ and probably heading towards 20$ and below from its current price of 24$.
The next halving that will lead to the mining reward of 12.5 blocks will take place in less than a year, specifically on August 8th, 2019, once the 840,000th block is reached.
What Halving Means for Litecoin (LTC)?
It has been recorded with the last halving process that took place back in 2015 that the number of miners was reduced in accordance with the halved amount of block rewards, supporting the theory that a portion of miners can’t afford LTC mining at reduced rewards.
The network, of course, adjusts to the reduced number of miners, just like it is the case with Bitcoin.
The halving of block rewards doesn’t reduce the difficulty of mining although it should in theory as mining through Proof of Work is still highly competitive, especially with the new and advanced mining equipment that not all individual miners can afford.
Theoretically, the losses of the crypto are said to potentially even out through balancing between the period of one halving and the other that should arrive in August 2019. However, while some believe that the price of LTC will rise with the next halving, others claim that the price will dip.[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]