Litecoin and Bitcoin are often compared to gold and/or silver. These two cryptocurrencies have several points in common, including the halving or halving. This year 2023, crypto analysts predict a notorious difference between the next Bitcoin and Litecoin halving.
Halving Bitcoin and Litecoin: understanding the phenomenon in a few minutes
The halving is a periodic and pre-programmed event affecting certain cryptocurrencies. The Bitcoin and Litecoin halving is a halving of the reward for mining transactions.
Concretely, the halving protects cryptocurrencies from inflation. The concept is simple: while fiat currencies experience inflation due to the abundance of liquidity, cryptocurrencies do not. This is possible thanks to the halving which prevents devaluation. Halving in effect reduces the rate at which new coins are created, thereby reducing the amount of bids available.
2023 forecasts: differences between BTC and LTC
The Bitcoin and Litecoin halving happens every four years. Thanks to the dominance of BTC, however, crypto analysts are eyeing different impacts on the market. This is partly due to the fact that the two cryptocurrencies work with different levels of rarity.
The fixed supply of Litecoin is 84,000,000 coins, while that of Bitcoin is limited to 21,000,000. This means that the supply of bitcoin to miners is very limited compared to that of Litecoin.
On BlockworksSologenic startup co-founder Bob Ras makes some other interesting points.
- According to him, Litecoin tends to rally strongly ahead of its halving until the whales start pouring in after the halving. This is because most of its users are speculators.
- As for bitcoin, the impact of the halving will be felt afterwards, but not before like Litecoin. This is because bitcoin’s fundamentals are strong, so speculators don’t have much influence.
The Bitcoin and Litecoin halving will not take place at the same time. The first is only scheduled for 2024, while the second will occur on August 3, 2023.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
