With a peak of around $55 per litecoin not so long ago, Litecoin has ever since been on a somewhat downward trend since then but it’s a coin thats ever constant with been one of the top cryptocurrencies out there and at the time of writing sitting in third position in terms of market cap via coinmarketcap.com and with a price of $3.50 LTC.
Litecoin, has an upcoming halving on the 25th August, theres lots of scepticism about whats going to happen to it’s price so lets take a look at the potential of things that could happen.
The total amount of litecoins will eventually be 84 million coins, with the halving happening roughly every 4 years with of course the first happening on the 25th August, halving the coins rewarded per block down from 50, to 25. If we take a look at bitcoins halving back in 2012 it really didn’t have an impact (fig1), the price only really started to rise around a year later but of course were now into 2015, theres a lot more traders on the market and more people with the ability to change the price.
What we have to think of is the miners, if the halving drops the price of Litecoin (LTC) then its going to be a case of shutting off the miners as there will be no room for profit with there revenue or litecoins rewarded slashed by 50% for a start, on the swing of that the difficulty will then drop if this happens resulting in easier ‘mining’ thus more litecoins rewarded in the mining periods, in the long run.
People are watching the markets, people know what happened when bitcoin halved and the experience is now there, but again this is 2015 and theres more people trading cryptocurrencies. As a personal overview the halving of Litecoin is going to increase the price of LTC, people are going to start buying up Litecoin prior to the halving hoping not to miss the ‘moon’, litecoins supply on a daily basis will be down 50% so the demand for them is going to increase.
The next 48 hours is going to be interesting, we’ll revisit this article after it happens to look back on the insight.