Litecoin is everybody’s favourite Bitcoin silver, or so how most crypto investors call it. The coin has been seen doing multiple marketing stunts in the past, but that didn’t do too much for the popularity, and most importantly, for the pice.
It seems like LTC is completely reliant on how Bitcoin performs in the market, as the two coins have very similar price shifts according to the last month’s charts. But that much is predictable. Once Bitcoin goes up, everybody follows it, right?
Well, that may change very soon, as Litecoin is preparing for something very serious in the near future, and the investors are pumped up about it. So, what’s going to happen?
The popular crypto is soon going to get a halving. What is a halving you ask?
A halving is an event that occurs with pretty much every crypto and has occurred in the past. It is when the reward for mining a single block in a specific blockchain is reduced by half.
For example, before 2015, Litecoin’s reward for mining a block in its blockchain was 50 coins, but then it experienced a halving, and the reward went down to 25 LTC per block.
In early August this year, Litecoin is going to have yet another halving on its chain, and the 25 LTC reward will become 12.5 LTC per block. Why is this so important?
You see, the last time LTC had a halving, it’s price jumped up by 100%, and some say even more. The halving happened in July, so it’s easy to check it on coinmarketcap. Now, many experts are saying that the LTC halving of 2019 is going to have the exact same effect, and will grow the price by 100% once again.
Why is this rumour spreading?
Naturally, this information was first found out by Litecoin miners, who then started to spread it. Although most of the “propaganda” about a potential 100% price increase started from crypto experts, no small activity was seen from CFD brokerages preparing for such a lucrative event.
According to some reviews, the brokerages sent their customers some signals to expect something amazing from LTC in August, which led to everybody researching the coin. Soon enough, the information was everywhere, but the coin didn’t grow in price before just a couple of hours ago. It was struggling at $101 but managed to regain its momentum back to $113 today.
But are the rumours correct? Will Litecoin actually grow by 100%? Well, let’s look into it a bit.
Will Litecoin increase by 100%?
In the past, when the halving was conducted in 2015, no real maintenance was attempted by the Litecoin blockchain, therefore, just like everybody had predicted, the price jumped more than 130%.
Now though, the Litecoin blockchain is preparing to mitigate the supply loss due to lower rates of mining. The Litecoin blockchain will emit an additional 23 million coins in the circulation, which is supposed to reduce the price jump just by a little bit at least.
Ok, let’s analyze. The halving will happen, which will increase the price by 100%, and 23 million coins (which are around 30% of the current 62 million). If we do a bit of math, we come to around 50 or 60% price increase due to all of the factors.
The 100% increase is simply impossible due to the increased circulation and mitigation of the supply loss.
Although it doesn’t sound like much, most Litecoin traders are still more than happy to stock up with LTC and put on their tin foil hats in anticipation of August, which may finally make LTC an independent coin once again.