Litecoin’s halving is now less than 24 hours away – meaning miner rewards will soon reduce from approximately 25 to 12.5 LTC per block.
That’s a difference in value from about $2,295 to $1,147 in today’s prices.
The halving is part of the coin’s deflationary nature, with less coins hitting the market as Litecoin slowly moves toward its total supply of 84,000,000 LTC.
Charlie Lee, the creator of Litecoin, recently discussed the impact the halving could have on miners and the price of LTC.
“The halvening is always kind of a shock to the system. 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’s three and a half days before the next change, so possibly like seven days of slower blocks, and then after that, the difficulty will readjust and everything will be fine.
In terms of the price, the halvening 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’s kind of a self-fulfilling prophecy. So, because they’re buying in, the price does actually go up.”
Although the halving could reduce miner participation, that’s not a given. After Litecoin’s 2015 halving, Litecoin miners didn’t opt out of LTC, with the currency’s hash rate dropping by 15% around the event but bouncing back about two weeks later, according to Binance Research.
CoinGecko keeps a second-by-second approximate countdown clock running for anyone interested in tracking the upcoming halving.
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