What is Litecoin Halving?
The number of Litecoin that would ever be created is 84,000,000. At the time of this post, there were 62,898,050 in circulation.
The Litecoin halfing would occur at block #1,680,000, that’s 4,077 blocks away. You can follow the countdown right here. Now let’s back up a bit.
Why is Litecoin halving important? What does a halving mean?
According to Bitcoin and Litecoin’s codes, their halving occurs every four years. Similar to the Bitcoin network, miners on the Litecoin network have to solve complicated mathematical equations to mine a block (a block in the blockchain). When they do this successfully, they earn a reward.
Currently, the reward for successfully mining a block on the Litecoin network is 25 LTC. The reward would be divided in half by Litecoin halving meaning that miners would be rewarded with 12.5 LTC as against the current 25 LTC.
Simply put, the Litecoin halving divides the reward for mining a block on the Litecoin blockchain into two; almost like a splitting a bar of chocolate into two equal parts.
What does the halving mean for the Litecoin Community?
In a recent tweet, Charlie Lee, founder of Litecoin, maintained that Litecoin mining would still be profitable for miners as cost of electricity would reduce.
According to him, miners are spending as little as 500 Cents on electrical energy per kilowatt-hour (KWH).
Even though the Litecoin halving means that miners would earn less, our man, Charlie Lee, says it would still be rewarding for them since many of them spend as low as 500 cents. Thus, in his opinion, the reward is still significant to keep the mining.
As a Litecoin investor/hodler what does it mean to you? Well, nothing really. Except that at the last halving there was a significant rise in the price of Litecoin.