The Ultimate Go-Getter’s Guide to Litecoin Halving 2019 !

A lot of analysis and speculations are doing the rounds on the internet that discuss the importance, impact, and results of LTC Halving, where a few people predict a price rally similar to its previous halving in 2015. But on the contrary, the founder of the blockchain based cryptocurrency in an interview said,

“When the mining rewards get cut in half, some miners will not be profitable and they will shut off their machine. If a big percentage does that, then blocks will slow down for some time. For litecoin it’s three and a half days before the next change, so possibly like seven days of slower blocks, and then after that, the difficulty will readjust and everything will be fine.”

After such a statement, there are two things that we can expect to see after halving;

1. Traders can expect higher volatility during this period.
2. Miners should expect to earn lower mining rewards post halving.

When we look back to the last halving that took place 4 years ago on 25 August 2015, we witness a peak in prices, then a reverse swing losing almost 50% in value by the time of the block rewards reduction and hitting a 75% in the halving aftermath.

Litecoin was trading at just below $78 earlier last month, and is now approaching towards $100. This blockchain based cryptocurrency also aces among the top 25 altcoins at rank number 4 according to market capitalization.

Currently trading at nearly $99, LTC marked an epic all time high of this year at $145.

The consequences leading to the halving of LTC chain will majorly affect the profitability of the miners which will be reduced to half, i.e., a miner will only receive half of what he is receiving now (from 25 LTC to 12.5 LTC). This might also create an impact on the number of miners mining LTC which is likely to go down, unlike the first halving where the miner count remained stable, without any considerable variation.

But how will the supply and demand theory make a presence here?

Before analyzing the halving and its impact according to the economic theory, let’s understand the perspective of Charlie Lee, and how he interrelates supply, demand and market sentiment,

“In terms of the price, the halving should be priced in because everyone knows about it since the beginning. But the thing is people kind of expect the price to go up. So a lot of people are buying in because they expect the price to go up and that’s kind of a self-fulfilling prophecy. So, because they’re buying in, the price does actually go up.”

The basic theory of supply and demand justifies that;