Today, Litecoin's halving will take place.
- Created: Wednesday, 02 August 2023 04:27
Cryptocurrency Litecoin (LTC) appeared in 2011 as a fork of Bitcoin with a different mining algorithm (Scrypt) and a reduced block time. For a long time, it was considered the second most popular cryptocurrency after Bitcoin. It was often said that Litecoin (LTC) is the silver to Bitcoin's gold (BTC). Like Bitcoin, Litecoin also reduces the mining reward every 4 years, but since LTC was created after Bitcoin, its halving events are delayed.
While Bitcoin will undergo its 4th halving next year, reducing the reward from the current 6.25 BTC to 3.125 BTC per block, Litecoin will experience only its 3rd reward reduction today, causing miners to receive 6.25 LTC instead of 12.5 LTC. This will directly impact the profitability of Litecoin miners by cutting it in half. The only way to compensate for these losses will be through an increase in the cryptocurrency's value or a decrease in mining difficulty.
Predicting the future development of Litecoin is difficult, but based on past experience, initially, we may observe miners disconnecting from LTC due to decreased mining difficulty. However, after some time, the increasing value of LTC may attract miners back, and a new cycle of competition among miners for Litecoin mining will begin.