Many litecoin miners stopped after block halving

The litecoin block halving took place on Monday 5 August 2019. This means that the reward for miners in litecoin is halved per transaction block. Many crypto enthusiasts were eagerly awaiting this: litecoin is coming on the market at a slower pace and with equal demand the price can rise.

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1 Peak before the block halving

2 What did the litecoin block halving do with the rate?

3 Related posts:

But there is also a downside. Litecoin miners receive less litecoin per transaction block, and therefore receive less or no return. Some miners have therefore stopped mining or have switched to mining another cryptocurrency. The total computer power on the litecoin network has fallen from 523 terahashes per second to only 295 terahashes per second. In August alone, the network lost more than 30 percent of its computer power.

With hashes per second is meant the number of calculations per second of a computer or processor. The higher this number is, the more secure the litecoin network is. More hashes per second means that it is more difficult to hack the litecoin blockchain.

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Peak before the block halving

Remarkably, the peak in computer power was already achieved before the litecoin block halving was a fact. This peak of 523 terahashes per second was achieved on Sunday 14 July. The litecoin block halving took place on 5 August, when litecoin had 458 terahashes per second. But after the block halving, miners stopped massing en masse.

It is an assumption, but it is possible that miners wanted to mine litecoin quickly before the reward was cut in half. Now that you get less reward and the hype of the halving is gone, the mining of litecoin has suddenly become less interesting.

But everything must be viewed in perspective. The number of miners is now slightly lower than in May this year. And on an annual level, litecoin has actually improved if you look at the growth of computer power.

What did the litecoin block halving do with the rate?

The hype surrounding the litecoin block halving in the first half of this year was enormous, litecoin was one of the best performing crypto coins. From the bottom in December 2018 up to and including the peak on 22 June, the rate has risen by more than 560 percent! An increase from 19.66 euros to 128.52 euros at the peak.

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But that didn’t last long. The rate started to fall on 23 June. On August 29, the lowest value since the top was reached with EUR 56.30. That is a drop of more than 56 percent. Well, it can go fast, we say! But here too it can be said: compared to the end of 2018, litecoin is still on the rise.