Litecoin halving event just passed and now the fourth-largest cryptocurrency by market cap has reduced the block reward for the miners in half as we are reading in the coming altcoin news below.
The litecoin blockchain reached a trigger block level of 1,680,000 at 10:16 UTC on Monday according to the data form the mining pool operator BTC.com. The Litecoin halving event marks a huge threshold for miners as the litecoin network is designed to reduce its mining rewards by half. For this event, the mining reward for every block has been reduced for every block that has been previously reduced to 25 LTC to 12.5 LTC. Given the block production time on the network takes up to 2.5 minutes roughly 576 blocks are produced almost every 24 hours with a supply added of 7,200 LTC entering into the market. As of press time, there are about 63 million out of the total issuance of 84 million that are in circulation which leaves up to 21 million LTC block mining rewards worth up to $2 billion at today’s prices that are available for miners to compete in the near future.
Since the start of the year, the LTC price has seen a huge uptick from around $30 in January to about $120 in June but then decreased to around $100. Correlating with the price increased ahead of the litecoin halving even, the hash rate computing on the network and mining difficulty both increased up to 200 percent since the end of December 2019. The halving will have a massive effect on the interest in mining participation since some of the mining devices will now have a tough time to generate enough LTC to offset the electricity costs.
According to the miner profit index from f2pool which is one of the world’s largest mining pools by hash rate, the three most profitable LTC miners that are made by FusionSilicon X6 and InnoSilicon had a profit margin of up to 55 and 60 percent before August 5. As noted in the latest cryptocurrency news, older models such as Bitmain’s AntMiner L3 had profitability that was less than 50 percent based on the electricity cost of $0.04 per kWh and LTC’s price before the litecoin halving event.
Charlie Lee Proposes Miner Donations To Fund LTC Development
‘’I think a better way to fund development is mining pools voluntarily donate a portion of the block reward. How about Litecoin pools donate 1% (0.125 LTC) of block rewards to the @LTCFoundation? If every miner/pool does this, it amounts to about $1.5MM donation per year!’’The Litecoin Foundation is one of the most important development entities and underwent a lot of funding deficits that seek other ways to survive the harsh effects of the bear market. The proposed solution angered the community since mining was unrestricted and voluntary activity. The rewards remain for the miners and anyone that tries to take part in the reward will have caused discontent. Litecoin started without a premine phase but other projects such as Zcash built their idea of a developer reward during the early years of mining.The proposal also came right after Bitcoin Cash decided to introduce a tax on the miners and the coin will now levy a 12.5% miner tax to all entities wishing to discover blocks so if the tax is not paid, any blocks discovered will not be considered and propagated. The approach of the founder of Litecoin is different and intended to be voluntary but will spike a whole set of activities that are supposed to have no barrier to entry. Litecoin mining has slowed down quite enough as 12.5 LTC block reward most of the miners give up after the recent halving.If the donations are levied, it would possibly bring around $3,816 per day for the Litecoin development based on the current block reward. Currently, the mining rate of LTC dropped by 70 percent from the all-time peak ahead of the halving and the miners produce around 142 TH/s which is only a small part of the Bitcoin cash activity. Scrypt mining happens on a much smaller scale with smaller machines as the activity is pointed to the SHA-256 mining for bitcoin and other forks of it.
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“Even taking this into consideration, the main conclusion one may make from this data is that there are a significant number of coins now held by strong hands and long term bulls who have been accumulating and thusly removing potential downward pressure on the markets.’’Litecoin is now on a new path after the harsh correction phase of above $140 and also the latest halving for the coin only brought a lot of gains in the months prior to the halving rather than the time after the halving. The coin is still highly liquid and has about $4.7 billion in volumes. The asset is present on the bigger exchanges and on some futures market additions on OKEx. Litecoin is seen as a pretty reliable coin with the potential for a significant increase during bull rallies.The last hopes for Litecoin (LTC) signal a new BTC rally as the two assets showed decent proximity and a lot of support from the communities and supporters. Litecoin (LTC) traded at $50.45 which is an increase of 16 percent in the second half of the month and is now recovering trying to surpass the 0.006 lows. The most recent price moves show that Litecoin could even become more active in the upcoming days since it is extremely popular in the Asian markets. The fact that Litecoin soared as one of the most impressive altcoins lately is also one that shows us that altcoins are regaining their confidence in the current market.
Dash Could Surpass Litecoin As Daily Transactions Increase Steadily
‘’At the very least, if the crypto market cares about real fundamentals, then $DASH should be where #Litecoin is right now on the crypto market cap ranking. it’s only a matter of time before real cryptos with real utility rise up to the top. https://t.co/MbGAkw5rvi pic.twitter.com/hpJyqcLmqB’’The Dash network is being used to transfer a lot more value than Litecoin which doesn’t automatically mean that it has more value. Both of the assets are different since Dash offers different types of transactions and it also features rewards.
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