Home / Cryptocurrency / Charlie Lee Next Months Halving Will Be a Shock to Litecoin Mining

Charlie Lee Next Months Halving Will Be a Shock to Litecoin Mining

Litecoin (LTC) author Charlie Lee has predicted that miners would possibly close up store after the coin’s upcoming halving this summer time. 

In an interview with Australian crypto information web site Mickey on July 10, Lee mirrored at the imaginable implications for Litecoin’s mining ecosystem when the deliberate halving kicks in and present block rewards at the community are lowered via 50%. “It’s at all times roughly a surprise to the gadget,” he stated, explaining: 

“When the mining rewards get lower in part, some miners is probably not successful and they’ll close off their device. If a large proportion does that, then blocks will decelerate for a while. For litecoin it’s 3 and a part days prior to the following exchange, so in all probability like seven days of slower blocks, after which after that, the trouble will readjust and the whole lot shall be nice.”

For the reason that the relief of mining rewards reduces the cryptocurrency’s delivery, anticipation of the halving is in most cases regarded as accompanied via a corresponding worth appreciation — however Lee gave a extra nuanced point of view of ways delivery, call for and marketplace sentiment interrelate:

“Relating to the cost, the halvening must be priced in as a result of we all know about it for the reason that starting. However the factor is other people roughly be expecting the cost to move up. So numerous persons are purchasing in as a result of they be expecting the cost to move up and that’s roughly a self-fulfilling prophecy. So, as a result of they’re purchasing in, the cost does in truth pass up.”

As Mickey notes, Litecoin’s ultimate halving — again in August 2015 — noticed the coin peaking in early July of that 12 months, happening to lose virtually 50% in price by the point of the block rewards relief — and hitting a 75% within the halving’s aftermath.

To press time, Litecoin is reporting a virtually 36% achieve on its Three-month chart, however stays virtually 67% down from its all-time highs in December 2017, consistent with Coin360 information. 

LTC 3-month price chart

LTC Three-month worth chart. Supply: Coin360

In the meantime, Anthony Pompliano — the co-founder of crypto asset control company Morgan Creek Virtual Belongings — has not too long ago predicted that some of the greatest drivers of persevered worth appreciation for most sensible crypto Bitcoin (BTC) shall be its halving, mentioning vintage supply-demand economics as a big contributing issue to his $100,000 forecast via the tip of 2021. 

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