The long-awaited halving event for the Litecoin Blockchain is finally upon us. The event which will see miner rewards split in half has reached its scheduled date as the network approaches mining the required Block for a halving. Many LTC enthusiasts and analysts have been bullish about the price prospects of the digital asset after the event. A good number of them believe that the event will have a positive impact on the price of LTC. Even though this hasn’t been the case a few days to the event, the sentiment within the sector is optimistic.
Now that the countdown to the actual Litecoin halving has started, what should we expect? Will the halving boost the price of LTC? Why is the halving event done? This content gives a rundown of what we should expect and how the event will play out.
Why is the Halving Necessary?
In the next few hours into August 5, the highly anticipated Litecoin halving will begin. The network will go through what will be its second halving event. This will commence when the specified requirements are met. That is when 1,680,00 blocks have been mined, Litecoin would begin the halving. The actual purpose of a halving in the crypto and Blockchain sector is purely to keep the supply and demand in check.
Every decentralized cryptocurrency including the top dog of them all Bitcoin goes through a halving every four years to ensure that the supply and demand of the tokens are kept in check. The event will see miner rewards split in half.
What Impact will Litecoin Halving Have and will it Affect the Price of LTC?
After the halving event, the miner reward for each block mined will be split in two. This is where the name the halving originated from. For Litecoin, the current reward per block mined stands at 25 LTC, but after the halving event, it is going to be brought down to 12.5 LTC. What about the price prospects of LTC after the event?
Experts and proponents expect the price of Litecoin to rise after the halving event. The reason for this is because it will become more difficult for miners to mine LTC after their rewards have been cut in half. However, it is noteworthy to mention that it usually takes a long time before we can actually see the real impact of a crypto halving event on the coin’s price. The same can be said about LTC.
When Should We Expect the Final Litecoin halving?
There is a final halving event for every decentralized cryptocurrency. For LTC, the last halving is estimated to happen when Litecoin has been mined to 84 million coins which will be in 2124. By then 84 million LTC will be in circulation. As of August 5, there are already 62,983,450 LTC that have been mined. Meaning in just a few more halving Litecoin mining will reach the specified 84,000,000 coins and there will be no need for a halving.
According to data from CoinMarketCap, the price of Litecoin is trading at $118.07 area at press time. The crypto quotes are also trading under the moving average. Let’s wait and see how it goes down. One thing that is sure is that proponents are positive about the coin’s prospects after the event.