CRYPTO MOVERS AND PRICES
CRYPTO STORY OF THE DAY
Litecoin (LTC) Is Slated To Undergo A Block Reward Halving Event Sometime On Monday - It Has Been Widely Believed That The Event Has Been A Contributor To The Coin's Outperformance In 2019
A block reward halving in crypto is a fixed event which exists so that a given token can meet its final stated supply. In the case of LTC, such events happen roughly every 4-years where on Monday the mining block reward is set to be reduced from 25 to 12.5. The LTC block reward will subsequently be halved until it reaches its final supply of 84M tokens. LTC has been one of the best performing coins in the Top 10 up 200% in CY19 vs BTC +170%, ETH +64% and XRP -13%.
Takeaway: The issue with analyzing halving events is that one falls victim to relatively small sample size. The last BTC halving took place in 2016 and LTC previously halved in 2015, so even the more recent examples occurred in a completely different price environment. The events are generally thought to be positive as it brings more attention to the coin (though Google trends for LTC have fallen off recently, see chart) and it gives miners, who are for the most part natural sellers of coin, less supply. Importantly, however, traders will be watching closely for some precedent ahead of the Bitcoin halving set to occur in mid-May of next year.