The Creator of the cryptocurrency Litecoin Charlie Lee admits that the coming weeks can become a “real shock” for the miners coins. All because of the upcoming halving coins. Recall halving is the process of cutting the remuneration for the block, which is produced miners. Previously LTC already went through one procedure, which was the cause of the increase in the price of the cryptocurrency.
Who will stay afloat
Lee said he is not particularly successful businessmen will have to still unplug some equipment from outlets. But reducing the rewards for the block two times always “is a shock to the whole system.”
When reward will be cut in half, some miners will have to leave this business. If you do quite a large process miners, the mine unit at some point increase. In the case of Litecoin the difficulty goes through the recalculation after seven days more than the slow blocks. Then the mining difficulty will adjust, and everything will be back to normal.
Halving is considered to be one of the key triggers of growth of the cryptocurrency. For the past few months, Litecoin has steadily grown, partly confirms this theory. However, Charlie sounded a more complex pattern of correlations in the market.
From the point of view price having already accounted for in the price movements of the asset so as all know from the very beginning. However, people are still waiting for the increase in the cost of LTC, so buy cryptocurrency in spite of everything. In the end, the price of the coin rises, and before havinga really starts the next rally.
In 2015, a few weeks before cutting back the awards to the miners, the price of LTC rose 50 percent. And after the procedure, the cryptocurrency has risen by several tens of percent.
At the moment Litecoin is trading at $ 108. For the past day coin dropped by 9.19 per cent. Want to earn more on the price movement of the asset? Subscribe to our cryptcat of hontarov!
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