LTC hash rate crashes by more than 70 percent after the Litecoin halving event, reaching lowest levels similar to the ones in 2017 as we are reading today in the Litecoin news today.
The drop in price comes months after the Litecoin halving event and it raises the questions among the community if the network of this altcoin can be jeopardized easily if the LTC hash rate continues to drop. The hash rate is dropping violently over the past six months and the all-time high was reached in July but ever since then, it has been dropping continuously, noting the lowest value for 2019 a few days ago.
The LTC hash rate is the most important part of the crypto mechanism since it shows the amount of hash calculated each second on the network. We can assume that when more miners mine Litecoin, it means that more calculations are performed per second which results in increasing the hash rate. If it starts declining, it means that the fewer people are interested in mining rather than the cryptocurrency itself which happens when the profitability is low. The LTC hash rate is heavily correlated to the safety and security of the network so when it is lower, it means that it could be more vulnerable to the 51 percent attack.
Such attacks can occur if one entity takes control over the hash rate which will lead to a disruption in the network. If it is executed properly, the perpetrators could prevent transactions from being confirmed and will exclude miners and reverse transactions. Ethereum Classic experienced an attack of this kind on its network, having only 54,200 ETC transferred out of Coinbase. The most important reason for the decreasing hash rate means that it can be related to how miners see and calculate the potential of join forces with the mining efforts.
Litecoin noted the block halving in August and slashed the rewards for the miners in half up to 12.5 LTC per block. The miners didn’t seem to back off from the Litecoin network but the declining hash rate could indicate that this is no longer the case.
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