Litecoin (LTC) miners are about to see their reward for mining blocks on the Litecoin network halved. Litecoin halving 2019 is just a couple of days away and the event will reduce the reward of miners on the blockchain from 25 LTC to 12.5 LTC, a reduction of 50 percent. This is a significant level of reduction and LTC mining will become less profitable for miners. The creator of Litecoin – Charlie Lee – recently acknowledged that the Litecoin halving 2019 might cause the LTC network to slow down as some miners might shut down their machines due to low-profit levels. However, there seems to be a solution. Litecoin miners still have the chance to increase their profitability after the Litecoin halving event.
Merged Mining for Dogecoin and Litecoin Miners Could Boost Returns for LTC Miners – Litecoin Halving 2019 – Litecoin Price Prediction 2019 – Cryptocurrency Market Update
A recent report by ‘Use The Bitcoin’ revealed that it is possible for Litecoin miners to do “merged mining” with Dogecoin miners to increase their profitability. The report revealed that, depending on the performance of the market, the mining reward of Dogecoin could outperform that of Litecoin by 2040. Nevertheless, for Litecoin miners to boost their returns, they can use merge mining to mine both coins simultaneously.
This report was gotten from the analysis of Binance Research on the state of affairs with Litecoin (LTC) and Dogecoin (DOGE). The research also explored the idea that joint merging could help both digital currencies remain relevant into the future. A snippet from the report states:
“For instance, assuming the price of Dogecoin (DOGE) is constant and it is equal to $0.0035 and that of Litecoin (LTC) is equal to $121. At present prices in terms of USD, the mining rewards of Dogecoin would outweigh the mining rewards of Litecoin (LTC) by 2039 or 2040.”
Merged Mining Will be Easier Since Dogecoin Is a Fork of Litecoin
Dogecoin (DOGE) is a fork of Litecoin (LTC). The digital currency was spooned out of the LTC network. Both Dogecoin and Litecoin use the Scrypt hashing function. As such, miners can potentially use a merged mining technique that mines coins simultaneously on both blockchains. The merged mining of Dogecoin and Litecoin is only possible because of a process known as Auxiliary Proof of Work (AuxPoW). According to the report by Binance Research,
“Merged mining has to do with the mining of two or more digital currencies at a time, without sacrificing overall mining performance. Miners can use their computational power to mine blocks on more than one chain simultaneously through the use of Auxiliary Proof of Work (AuxPoW).”
Statistics have revealed that Dogecoin (DOGE) and Litecoin (LTC) have shared a very high correlation between their hashrates since they emerged in the crypto space. The hashrate has been as high as 95 percent. This is a very good opportunity for Litecoin (LTC) miners as it would increase their profitability level which would be reduced by half after the forthcoming Litecoin halving 2019.
Litecoin (LTC) Price Today – LTC / USD
At press time, the price of Litecoin (LTC) has dropped to $98 after a decrease of about one percent over the past twenty-four hours. The current market cap of the digital currency is $6.21 billion. The trading volume of Litecoin (LTC) over the past twenty-four hours is $3.60 billion.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.