Litecoin is one of the most popular cryptocurrencies in the market right now alongside giants such as Bitcoin, Ethereum and Ripple. But it may soon surpass all of its competition and become the second largest coin due to an upcoming halving event.
A halving event is something that happens when the number of cryptocurrencies rewarded to a miner per block mined is halved. Pretty self-explanatory right? So what should we expect from LTC in the coming days? Pretty much a 100% increase in price is actually an accurate prediction.
When will the halving take place
The halving will happen in exactly 69 days from now. Currently, the reward for a mined block in the LTC network is 25 coins. That number will be reduced to 12.5, which will cause a supply shortage.
Everyone out there with an economics degree or any knowledge in economics will know that demand surpassing supply is sure to drive prices to unimaginable heights. In fact, the price consolidation has already begun in anticipation of the halving.
The first halving happened in August 2015, when the LTC per block was reduced from 50 to 25. It didn’t cause as much price consolidation as was predicted, but 2015 was definitely not a time where cryptocurrencies shined the most.
Now, almost everybody is aware of cryptos and generally knows what may affect the price. Especially the long-time LTC investors know what to expect in those 3 months.
Here is our prediction though.
Due to the fact that the total number of LTC in circulation will increase, around 84 million coins in the market, but acquiring the said currency will become much harder, it’s expected that at least a 100% price consolidation will occur. If not, then the next best prediction is the percentage compared to today’s price.
Right now, the price of LTC is $116 per coin, which was much due to the Bitcoin rush recently. There are around 61 million coins in circulation, which means that at least 23 million will be added, which is 37% of the number of coins in circulation right now. Naturally, the worst case scenario is a 37% increase of the price at the moment of the halving.
Overall, long-term investment in LTC for the sole purpose of waiting for that halving could be a good decision, and many traders are already engaged in those trades. Whether or not LTC reaches $200 by the time the halving happens remains to be seen. But the more people find out about the halving, the more the demand will grow in the wake of reduced supply.