Litecoin Halving Price Rally Fizzles Sub $100 But 97% Hash Rate Stays

Below at some point since Litecoin (LTC)’s halving, its hash charge seems to be as strong as ever.

In a tweet posted on Aug. 5 — slightly below 22 hours after the halving occasion —  Litecoin creator Charlie Lee famous that:

“504 blocks have been mined for the reason that halving. That is 1/four of the best way to the following diff change. 21.65 hrs has elapsed for the reason that halving. Usually on common it takes 21 hrs for 504 blocks. This implies 97% of pre-halving hashrate nonetheless mining LTC.”

Mining FUD debunked

Halving — or the pre-coded 50% discount of the mining rewards for a given cryptocurrency — is an occasion that’s intently watched by the crypto group for its impression on each the value and on miners. 

For Litecoin, rewards halve each 840,000 blocks — a course of that happens each 4 years. The block pace for Litecoin is roughly 2.5 minutes, with round 576 blocks generated per day, as beforehand reported. 

Forward of Litecoin’s newest halving, Lee had notably warned that the block reward discount might be a shock for the coin’s mining ecosystem, noting that:

“When the mining rewards get reduce in half, some miners is not going to be worthwhile and they’re going to shut off their machine. If an enormous proportion does that, then blocks will decelerate for a while.”

But as yesterday’s knowledge reveals, this shock doesn’t seem to have materialized, with miners unfazed by the slimmer pickings provided to them in return for his or her hash energy.

Market ripples

Assuming that a cryptocurrency has a cap on the entire cash that can ever be mined — as for Litecoin and Bitcoin (BTC) — the reward discount ought to, in response to basic supply-demand financial principle, have a bullish impression on an asset’s valuation.

Whereas Litecoin’s mining well being seems to be steadfast, the halving occasion translated into one thing of a fleeting value appreciation. The coin noticed a lift on its USD chart of 13% yesterday to hit $104, as of press time Litecoin is again circling just under $100, at $98.

With regard to cost, Lee had just lately argued that market sentiment complicates the impression of halving on a cryptocurrency, proposing that merchants’ anticipation of the occasion — slightly than shortage — is what creates a self-fulfilling prophecy to spice up the coin’s valuation.

Anticipation in the meantime continues to construct forward of Bitcoin’s (BTC) subsequent halving in Could 2020.

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