Litecoin ( LTC ) Second Halving: What is it and who does it concern?
On August 19, 2019, Litecoin is supposed to go something called as “it’s second Halving”. It could be before or after, it depends on the rate of blocks mined in the end. In a PoW blockchain, halving causes the miner’s reward to be halved. Hence the name. Since only a total of 84 million Litecoin will exist, the halving happens every 840,000 blocks.
Although halving reduces miners rewards, they do play a role in the increase in the price of the asset in the long run.
What is Halving?
Halving is the process in which the miner’s reward is halved after a predetermined block. Satoshi Nakamoto, the inventor of Bitcoin, added the “halving” feature to protect the value of Bitcoin from inflation, and also ensure that not all the blocks are mined so soon.
Similar to Bitcoin, Litecoin too has “halving”. That means at a predetermined block Litecoin’s mining reward would go down. This is Litecoin’s second halving, with the first one occurring on Aug 25, 2015, with miners reward going from 50 LTC to 25 LTC. After this halving miners reward will be 12.5 LTC.
Bitcoin already underwent its second halving on July 9th, 2016, so the next halving will be the third for Bitcoin.
Who does it concern?
Contrary to popular beliefs, halving doesn’t just concern miners but investors as well. As the number of blocks is mined, mining becomes difficult which means more resources. But the mining rewards decreases. To combat the decrease in mining rewards, the price of Litecoin increases as well. Although, miners see their mining rewards decrease, the overall price of the asset increases.
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