Litecoin Halving: What Will Happen?
In August 2015, the reward for mining Litecoin was halved from 50 Litecoin to 25. On August 5th, 2019, the reward for mining Litecoin was halved from 25 to 12.5 Litecoin.
This procedure for mining cryptocurrencies is called halving, and is a necessary procedure to understanding the lifespan of cryptocurrencies as well as the price fluctuations of them. Unlike the U.S. dollar or other fiat currencies, miners can’t just print more cryptos or reduce the supply to respond to different happenings in the economy; cryptocurrencies have a scarcity on their side which gives them their value. If only 84 million Litecoin exist, then Litecoin operates in a supply and demand market that decides the price based on the scarcity of the supply and how many people are demanding the currency. When a coin halves, the supply then grows at a smaller rate while the demand for that coin grows as its network of people using it grows, making that coin scarce. Traditionally, halvings have given the prices of its associated cryptos some flare, so we are hoping the future looks bright for Litecoin after its halving.
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