Litecoin Cash ‘Halving’ will occur at Block 1,680,000.
Halvings are well known and major events for other established cryptocurrencies like BTC and LTC. However, the technical background, reasons and implications can be tricky to understand and foresee. The first Litecoin Cash Halving will occur soon and below you will find a few definitions and expected scenarios.
Halving explained:
In a fully decentralized monetary system, there is no central authority that regulates the monetary base. Instead, the currency is created by the nodes of a peer to peer network defined by an algorithm. This will determine how the currency will be created and at what rate.
Essentially, miners can earn a profit by making sure that the cost of the resources that go into computing the solution to the puzzle is less than the denominated rewards they are receiving through the mining process. These rewards are blocks and at the date of writing the reward is 250 Litecoin Cash per solved puzzle (block).
As a means to control inflation and continued supply, built-in events will change the number of Litecoin Cash rewarded per block. They are known as ‘Halvings’.
Halving is when block rewards for mining are cut in half and occur at regular intervals based on the protocol.
In other words, in terms for coins that work like Bitcoin, which include Litecoin and Litecoin Cash (Litecoin Cash being the first fork of Litecoin) the code underlying the network dictates that X new coins minted as mining rewards, adding blocks of transactions to the blockchain, will be cut in half every Y blocks until the reward reaches zero and no new coins are mined. This ensures the maximum number of coins is reached, with the longest possible duration while maintaining a sustainable distribution and low inflation.
Halving of the Litecoin Cash network will occur at Block 1,680,000, predicted to be 28-June-19. This will result in block rewards reducing from 250 to 125 Litecoin Cash for both Proof of Work (PoW) and Hive mined blocks.
To follow the progress towards the halving you can check the block number in any of the available explorers, and a live countdown to this event may be found at the Litecoin Cash discord channels.
Join our growing community to find out more details or should you require any assistance please don’t hesitate to reach out.
Moving forward!
What will be the effect of the Litecoin Cash Halving?
A commonly asked question.
The correlation between network Halving and price has been positive so far in Bitcoin’s history, with a bullish sentiment also noted recently regarding the upcoming Halving of the Litcoin network, scheduled to take place 05-Aug-2019. Of course, past performance is no guarentee of future results as price predictions are purely speculative in nature.
Simply put, the market will dictate the price based on many factors and fundamentals. Worth noting though the age-old fundamental of supply v demand that is applicable to all trading assets and commodities. Litecoin Cash block rewards will be reduced from 250 to 125 following Halving, resulting immediately in less supply available at market. It is natural to assume that less supply may lead to an increase in demand and price over time.
As this is the first Halving for Litecoin Cash an obvious place to look for similarities is the latest LTC halving that occurred in 2015. LTC saw major price movement and gained 375% in the time up to the event, but also had a substantial correction soon after.
The Hive, cost per bee and how the halving will effect Hive Mining.
As for PoW miners, the halving will also influence how miners approach mining on the Hive. The relation between cost per bee and the block reward is more direct than PoW, and as bees exist for a longer period of time once created, the Hive miner needs to consider certain aspects prior to initiating a bee creation transaction.
Following the Halving, the price of a bee will be reduced from 0.1 to 0.05 Litecoin Cash. This will ensure that the conditions for Global Index (GI) and general profitability will remain unchanged.
Caution: It should be noted that bees purchased prior to the halving and having a lifespan extending thereafter will have been purchased at the Pre-Halving price. The result being that even if the number of blocks found remains as expected, the actual number of Litecoin Cash rewarded per block will essentially be lower for the blocks found following the Halving.
You should consider your purchase of new bees extra carefully in the days and weeks before the Halving and even though a drop in Global Index is expected, make sure that you look at all the facts and match them with your expectations for risk/profitability.
The team at Litecoin Cash eagerly await this event, the first Halving of the network and another milestone achieved, taking Litecoin Cash on our Journey towards its full potential.
We would like to again thank our community for the continued support 🐝 Always a source of motivation.
Here’s to the future, for tomorrow belongs to those who prepare for it today.
The Litecoin Cash team.
Further information and regular updates may be found on our Website and Social media channels.
