investor fantasy or non-event? – Bitcoin – Cryptocurrency 2020

Not a week goes by without mentioning the Bitcoin halving (BTC), planned for approximately mid-2020, as this event is unanimously recognized as a catalyst for increasing value.

However, despite the fact that Litecoin (LTC) – as a fork of Bitcoin – is equally affected by this mechanism, its future halving goes relatively unnoticed. However, the next LiteCoin halving is planned… ..for in a few weeks!

Litecoin, “digital money”

It is often reminded, if Bitcoin (BTC) has the reputation of representing “Digital gold” (due in particular to certain characteristics which designate it as a store of value), LiteCoin (LTC) is readily qualified “Digital money. “.

Litecoin was born on October 7, 2011, forged by Charlie Lee, one of the pioneers of the young crypto sector (he is also part of the list of VIPs invited by Justin Sun, the boss of TRON to a charity meal alongside the emblematic investor Warren Buffett). Planned from design to solve some of the slowness issues – already – of the Bitcoin blockchain, its initial ambition was to offer four times more transactions, four times faster.

From one of the first forks of Bitcoin, Litecoin does however have a few specific characteristics:

  • Its total supply (maximum quantity) is 84 million units (4 times more than its model),
  • a new block is issued every 2 mins 30 (unlike 10 mins BTC).

For the rest, like his big brother, it’s a currency called deflationary, that is to say that its quantity produced, known in advance, will never increase or even decrease. In parallel, the number of LTCs produced is algorithmically expected to decrease over time: the famous halvings !

What is halving and why care about it?

Operation

Halving is a process of biblical simplicity: on a fixed date, the block reward (the amount of LTC that miners of the Litecoin blockchain obtain in return for their contribution to the functioning of the system) is divided by 2!

This mechanism operates mechanically and inevitably every 4 years (another point in common with Bitcoin, governed by the same calendar). You are stupid in mental arithmetic, which means that at this point you have already understood the LTC knew in its young existence only one halving, in August 2015, the 26th exactly. And driven by the same talent in arithmetic, you also know that the next division by 2 of the block reward will intervene…. in just over 2 months!

On this date, around block 1 680 000, the reward will drop from 25 LTC per block at 12.5 LTC

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Should you be bullish about the Litecoin halving?

If Litecoin deserves all the attention of the investor (it is an old cryptocurrency, very well known, firmly installed in 4th place on the Market Cap, with a capitalization of nearly $ 9 billion), the previous halving of 2015 did not have a very visible effect on its value. This is one of the big differences in behavior with Bitcoin, the halvings of which have so far always been heralds of increasing value.

However, the 2019 halving could look different. In this context, it should be noted that despite a general decline in the entire crypto market over the past 7 days, Litecoin is an exception with an impressive + 12%! More generally, after reaching a bearish low of around $ 20 at the start of the year, crypto assets have since provided investors a yield of 500%.

This impressive increase, however, brings water to the mill of those among technical analysts, who consider that the currency created by Charlie Lee is currently overvalued.

“The portfolio of those who FOMO (“ rush ”) on LTC may well be halving too” Walter Wyckoff, crypto humorist and technical analyst

Litecoin, are we going or not?

As one of the Top 5 cryptocurrencies, hold Litecoins in his investor portfolio seems like a wise decision. It will become even wiser by keeping in mind the 13 rules of the investor to boost his wealth in cryptocurrencies.

Anyway, if there is nothing to indicate (let alone guarantee) that the coming halving may have any impact on the value of Litecoin, stay tuned for these blockchain highlights in any case will enrich you with lessons!

investor fantasy or non-event? – Bitcoin – Cryptocurrency 2020
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