Upcoming block reward halving could give Litecoin a boost

Litecoin (LTC), one of the earliest Bitcoin forks, is only 100 days away from a block reward reduction event that plans to make it harder for the tokens to be mined—which could make the circulating supply of LTC more valuable.

The Halving Event

Much like bitcoin, from time to time Litecoin goes through a fixed process called halving that reduces the rewards miners get for mining a block, which in turn reduces its rate of issuance. Every time 840,000 LTC blocks are mined the coin reward is cut in half. This event is scheduled to happen every 4 years since the current block generation time is set to approximately 2.5 minutes, producing 576 blocks per day.

Related: Could Bitcoin’s halving push its price to $55,000? One quant thinks so

Around Aug. 6, 2019, at exactly block 1,680,000, miners who are currently being awarded 25 new LTC for every block they solve will only be rewarded with 12.5 LTC per block. The inflation rate of this cryptocurrency will also be impacted for an extended period of time as the reduction in future supply increases.

This event will continue to happen until the total supply of 84,000,000 LTC are mined. While it is unknown when the last few coins will be mined, it is expected to be around 2142 based on the current rewards schedule. By then, approximately 0.00000672 LTC will be mined each day until eventually, all the tokens are in circulation.

Source: Messari

Past Halving Events

Litecoin has only had one halving event since it went live on Oct. 13, 2011. The first block reward reduction took place on Aug. 26, 2015, at a block height of 840,000. At the time, the mining reward  dropped from 50 LTC per block to 25 LTC. The event had a great impact on the market valuation of this cryptocurrency, which was perceived before and after it occurred.

Following a consolidation phase that lasted more than a month, from Apr. 13 to May 21, 2015, where LTC was trading between $1.35 and $1.5, the price finally broke out on May 22, 2015. In a matter of 48 days,…

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