Litecoin halving is quite similar to Bitcoin halving. Since you have opened one of my blogs related to Cryptocurrencies, I am going to assume that you are a crypto trader and you want to invest in Litecoins.
Let us be honest, the market of Bitcoins is so volatile that investors think thrice before investing in them. Litecoin serves as a good alternative to Bitcoins. As a crypto trader, you may already know what Litecoin is, but most people do not know anything about the other cryptocurrencies like Ether or Litecoins. So let me first mention what litecoin actually is.
Litecoin, too is a cryptocurrency and is currently the 7th most popular cryptocurrency in the world. It is quite similar to Bitcoins as both of these cryptocurrencies are decentralized and use Blockchain technology.Visit bitcoin equaliser to know.
It was founded by Charlie Lee back in 2011 and was marketed as the ‘lite version’ of Bitcoins.
Differences between Bitcoins and Litecoins
Even though Bitcoins and Litecoins are both cryptocurrencies and use Blockchain Technology, there are still a few key differences.
- Market Capital Value: The Market capital value of Bitcoins as of January 29 is $611,571,950,477; on the other hand, LiteCoin’s market capital value is $8,854,667,352.
- Mining Limit: The mining limits are different for Bitcoins and Litecoins.
Bitcoins: 21 million
Litecoins: 84 million
- Speed of Transaction: Time taken for a Bitcoin transaction is about 9 minutes, according to Blokchaininfo.com, but for Litecoin, it is just 2.5 minutes.
What is LiteCoin Halving?
Halving is basically the rewards miner acquire while mining any sort of cryptocurrency. Miners are in constant competition for adding new blocks to the blockchain.
There are many stages of Litecoin halving. Halving also reduced the rewards by half, for instance, from 12.5 to 25. Havings are crucial as the number of Litecoins that can be mined are limited.
1st Litecoin halving
The first Litecoin took place on August 26 in the year 2015. Halving is necessary to keep the miners hooked in the process. When a Litecoin is halved, it increases the value. When Litecoin was first halved, the value increased only by a small margin of $2.93, which was just a slight increase.
The increase was not noteworthy as it was still an $8.72 decrease from the all-time high of Litecoins. In the initial stages of the inception of Litecoins, Bitcoin was mainly going through a bullish trend in the market. However, things started to look better for Litecoins since 2015, when it faced a bull run and the value increased by 800%
However, the price soon crashed; from then on, the price of Litecoin has been pretty stagnant.
Impact of Halving on miners
Litecoin halving impacts miners in a lot of ways. The impact is both positive and negative. First of all, the positive impact is when Litecoin is halved, the value of Litecoin increases by a lot. This is not only good for miners, but the whole crypto industry benefits from it.
The negative impact is that the rewards acquired get halved. So miners often lose the enthusiasm to participate in LiteCoin mining.
What is in store for Litecoins?
When the process of Litecoin halving takes place, slight volatility is natural. The value of one Litecoin is $45, which is quite saddening as it is a 53% drop from the price in August 2020.
LiteCoin is not showing the potential that it once promised and have been a victim of the massive bull run of Bitcoin in the year 2020. Since Bitcoins are breaking new records every day, other cryptocurrencies are suffering, and LiteCoins in particular.
Final Thoughts on Litecoin Halving
There you go, everything to know about LiteCoin halving is up there. I believe you will acknowledge this article to be quite informative. Since I am a crypto trader, you can count on the information given above.