Under one day since Litecoin’s halving, its hashrate appears to be as robust as ever, with hashrate at 97% of its pre-halving level.
Under one day since Litecoin (LTC)-rsquo;s halving, its hashrate appears to be as robust as ever.
In a tweet posted on August 5 -mdash; just under 22 hours after the halving event -mdash;- Litecoin creator Charlie Lee noted that:
-ldquo;504 blocks have been mined since the halving. This is 1/4 of the way to the next diff change. 21.65 hrs has elapsed since the halving. Normally on average it takes 21 hrs for 504 blocks. This means 97% of pre-halving hashrate still mining LTC.-rdquo;
Mining FUD debunked
Halving -mdash; or the pre-coded 50% reduction of the mining rewards for a given cryptocurrency -mdash; is an event that is closely watched by the crypto community for its impact on both the price and on miners.-
For Litecoin, rewards halve every 840,000 blocks -mdash; a process that occurs every four years. The block speed for Litecoin is roughly 2.5 minutes, with around 576 blocks generated per day, as previously reported.-
Ahead of Litecoin-rsquo;s latest halving, Lee had notably warned that the block reward reduction could be a shock for the coin-rsquo;s mining ecosystem, noting that:
-ldquo;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.-rdquo;
Yet as yesterday-rsquo;s data reveals, this shock does not appear to have materialized, with miners unfazed by the slimmer pickings offered to them in return for their hash power.
Assuming that a cryptocurrency has a cap on the total coins that will ever be mined -mdash; as for Litecoin and Bitcoin (BTC) -mdash; the reward reduction should, according to classic supply-demand economic theory, have a bullish impact on an asset-rsquo;s valuation.
While Litecoin-rsquo;s mining health appears to be steadfast, the halving event translated into something of a fleeting price appreciation. The coin saw a boost on its USD chart of 13% yesterday to hit $104, as of press time Litecoin is back circling just below $100, at $98.
In regards to price, Lee had recently argued that market sentiment complicates the impact of halving on a cryptocurrency, proposing that traders-rsquo; anticipation of the event -mdash; rather than scarcity -mdash; is what creates a self-fulfilling prophecy to boost the coin-rsquo;s valuation.
Anticipation meanwhile continues to build ahead of Bitcoin-rsquo;s (BTC) next halving in May 2020.