NEWS: Litecoin halvings coincide with major price changes — but different from bitcoin.https://t.co/zDyxpS8YkI
— Blockworks (@Blockworks_) April 24, 2023
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Bitcoin and Litecoin Halving: Perspectives for 2023
Wed 26 Apr 2023 ▪
3
min read ▪ by
Getting informed
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Bitcoin and Litecoin are often compared to gold and silver. These two cryptocurrencies share several similarities, including the halving phenomenon. In 2023, crypto analysts predict a notable difference between the upcoming Bitcoin and Litecoin halving.
Understanding the Halving Phenomenon in Bitcoin and Litecoin
The halving is a periodic and pre-programmed event affecting certain cryptocurrencies. The BTC and LTC halving corresponds to a halving of the reward for transaction mining.
In concrete terms, the halving protects cryptocurrencies from inflation. The concept is simple: while fiat currencies suffer from inflation due to an abundance of liquidity, cryptocurrencies do not. This is possible thanks to the halving, which prevents devaluation. The halving reduces the speed at which new coins are created, thereby reducing the amount of supply available.
Forecasts for 2023: differences between BTC and LTC
The Bitcoin and Litecoin halving occurs every four years. Due to Bitcoin’s dominance, crypto analysts expect different impacts on the market. This is explained, in part, by the fact that the two cryptocurrencies operate with different levels of scarcity.
Litecoin‘s fixed supply is 84,000,000 coins, while Bitcoin’s is limited to 21,000,000. This means that the supply of Bitcoin available to miners is very limited compared to that of Litecoin.
On Blockworks, Bob Ras, co-founder of startup Sologenic, highlights other interesting points.
- According to him, Litecoin tends to rally strongly before its halving until the whales start dumping after the halving. This is because most of its users are speculators.
- As for Bitcoin, the impact of the halving will be felt after, but not before, like Litecoin. This is because Bitcoin’s fundamentals are strong, and speculators do not have much influence.
The Bitcoin and Litecoin halvings will not occur at the same time. The first is scheduled for 2024, while the second will occur on August 3, 2023.
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.