The Litecoin block reward was halved and the 24 hour increase was over 13%. The bull market engine started again?

Osborne-1802181_1280 Litecoin (LTC), currently the fifth-largest cryptocurrency market capitalization, has just halved its second block award in accordance with the code design.

The Litecoin blockchain reached a block height of 1,680,000 at 10:16 UTC on Monday and was dug by the Poolin mine. According to the design of the Litecoin network, the network cuts by half every 840,000 blocks (about every four years). Mining rewards.

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Mine tank operator BTC.com's Litecoin browser showed that mining incentives effectively reduced from the previous 25 LTC to 12.5 LTC at 10:18 UTC time and 1680,001 heights broadcast by Antpool mines. It shows that the current inflation rate is already at a lower level.

The block production time on the Litecoin network is about one block every 2.5 minutes, about 576 blocks are produced every 24 hours, and 7,200 new LTCs are put into the market every day, which is half of the previous 14400 LTC supply.

As of press time, among the total supply of Liteco's 84 million LTCs, about 63 million have been dug out, leaving about 21 million LTC block rewards – $2 billion at today's price – available Mining companies compete in the future.

Since the beginning of this year, the price of LTC has risen sharply from around $30 in January to around $120 in June, but has since fallen to around $100. Affected by factors such as the halving of Litecoin today and the general rise in mainstream currencies such as Bitcoin, LTC today has broken through $100 to reach $104, a 24-hour increase of more than 13%.

According to the data, since the end of December 2019, the power of the Litecoin network and the difficulty of mining have jumped by 200%, which is in line with the expected price increase before the “half” event.

Since some of the widely used Litecoin mining equipment is now difficult to generate enough LTC to offset the cost of electricity, this halving may affect people's interest in participating in LTC mining.

According to a mining profit index of the F2Fool, before August 5, the three most profitable LTC miners produced by InnoSilicon and Fusionsilicon X6 had profit margins between 55% and 60%.

However, Bitmain's AntMiner L3 and other older miners are less than 50% profitable, based on the cost of electricity and $LT per kWh of $0.04.