Litecoin will be halved in August. The last halving bucked the trend and surged 5 times. This time it will rise. | poker pelangi rupiah, libra 4d togel

The halving itself can bring single-digit increases, but it is a catalyst. If it is combined with other factors such as the increase in intrinsic value brought about by technological progress, large-scale capital inflow from mainstream financial institutions after compliance, and severe inflation, there will be two to three-digit increases.

At the beginning of 2019, Litecoin led the cryptocurrency market.

Since Li Qiwei said at the end of January 2019 that Litecoin would be upgraded to support private transactions in 2019, and in conjunction with the good news of the halving of Litecoin block rewards in August 2019, Litecoin has risen from US$30 to around US$61, and its price has doubled. Based on the price in mid-December 2018, the price of Litecoin has almost tripled.

A few positive lines change the outlook. Various slogans such as bear-to-bull transfer points, buying Litecoin before the halving, and "Spicy Tiao Wanba" began to appear. Miners, investors, developers and other parties seem to be anticipating the upcoming Litecoin halving.

Will halving really bring about market trends? How big will this situation be? Even if it can really bring about a wave of market trends, how much of the increase will be retained after the halving?

Maybe we can get some inspiration from the historical halving market.

Litecoin’s halving market in history

Litecoin is a digital currency that was copied by Li Qiwei in 2011 by adjusting the parameters of Bitcoin. The main adjustments include algorithm, total currency amount and block generation time. Litecoin’s mining algorithm was changed from Bitcoin’s SHA256 to Scrypt. The total money supply of Bitcoin is 21 million, and Litecoin has increased four times to 84 million. Correspondingly, Litecoin produces a block in an average of 2.5 minutes, which is 4 times faster than Bitcoin. Bitcoin is halved every 210,000 blocks, and Litecoin is halved every 840,000 blocks, which are an average of 4 years.

Because Litecoin was born three years later than Bitcoin, Litecoin was halved a year before Bitcoin, but the number of halvings was one less than that of Bitcoin. The first Litecoin halving occurred on August 26, 2015, and the second halving is expected to occur in August 2019.

Let’s first take a look at the 2015 Litecoin halving.

2015 was the most difficult time of the last bear market. Bitcoin fell below 1,000 yuan at the beginning of 2015. But in the Litecoin market chart above, Litecoin had a small market from June to July 2015. Look closer.

Beginning at the end of May 2015, the Litecoin market began to rise all the way to the high point on July 10, rising from US$1.45 to US$8.47, and the price of Litecoin increased more than 5 times. The major gains were made within a month. But then it fell, and the benefits were exhausted on the day of the halving, recording $2.9. Although the price was halved compared to July 10, it was still twice the price before the market started.

It can be seen that Litecoin’s real surge followed the rise of Bitcoin in 2013 and 2017, and it recorded huge gains even without halving.

Bitcoin’s halving trend in history

In addition to the Litecoin halving market, you can also look at the impact of the Bitcoin halving on the price.

Bitcoin has experienced two halvings. On November 28, 2012, the block reward was reduced from 50 BTC to 25 BTC. On July 9, 2016, the block reward was reduced from 25 BTC to 12.5 BTC. The third halving is expected to occur at block height 630,000, approximately on May 15, 2020.

On November 28, 2012, the Bitcoin block reward was halved from 50 BTC to 25 BTC. The price on the day of the halving was US$12.35. Six months after the halving, in May 2013, the price was US$127, an increase of 10 times.

Nearly a year after Bitcoin’s first halving, Bitcoin experienced what is known as the first wave of the big bull market. It rose from US$120 in October 2013 to US$1,147 on November 30, 2013. The price increased 10 times in less than two months.

On July 9, 2016, the Bitcoin block reward was halved from 25 BTC to 12.5 BTC. Half a year before the halving, the price was about $450. On the day of the halving, the price was $657. Six months after the halving, the price reached about $1,000. One year after the halving, the price of Bitcoin was $2,500.

What else is affecting cryptocurrency prices

Price is the result of the interaction of supply and demand. Therefore, in addition to the block reward, which is a factor of reduced supply, there are many factors that simultaneously affect the demand for Bitcoin/Litecoin, and thus their prices. At present, technological progress, central bank monetary policy, supervision, etc. will significantly affect the price of cryptocurrency.

1. Technological progress

Litecoin and Bitcoin are not just the relationship between copycats and copycats, they also play the role of a pioneering test field for new Bitcoin technologies. For example, Segregated Witness and Lightning Network are all being tested on Litecoin in advance. After dispelling people's doubts about the application of a certain technology on the Bitcoin network, it can then be deployed on Bitcoin.

2017 is the year of Bitcoin expansion. While Bitcoin developers and miners are still debating Segregated Witness, Litecoin activated Segregated Witness before Bitcoin on May 10, 2017. After people observed that Litecoin ran Segregated Witness without problems for several months, Bitcoin launched Segregated Witness in August 2017. The same goes for the Lightning Network. The Lightning Network was launched on the Litecoin mainnet in November 2017, and in March 2018Bitcoin has just been launched on the Lightning Network.

The SegWit expansion method chosen by the Bitcoin community simultaneously meets the decentralization and expansion requirements of the Bitcoin network, and also removes obstacles to the deployment of the Lightning Network.

These technological advancements have effectively enhanced the intrinsic value of Bitcoin and Litecoin. Therefore, their prices have been rising throughout 2017. Until the launch of regulatory compliance futures products in December 2017, Bitcoin skyrocketed to nearly $20,000 per coin.

The current rise of Litecoin, in addition to the expectation of block halving, is also related to Litecoin’s upcoming adoption of MimbleWimble technology. Li Qiwei stated on Twitter that Litecoin will use MimbleWimble technology to achieve private transactions in 2019.

2. Central Bank Monetary Policy

The impact of monetary policy on cryptocurrency prices was most profound during the 2013 bull market.

During the European debt crisis in 2013, in response to the debt crisis, the government levied a deposit tax on residents' bank deposits. Bitcoin soared from more than US$30 to US$265 in just a few days.

The loose monetary policy adopted in 2009 in response to the world economic crisis exploded in 2013. After the world economic crisis in 2009, the world's two largest economies simultaneously implemented extremely loose monetary policies. China has implemented a 4 trillion policy, and all 4 trillion is base currency. Three rounds of quantitative easing were launched in October 2008, November 2010 and September 2012. As of October 2014, all QE programs in the United States had been stopped, and a total of US$4.5 trillion in assets had been purchased.

By 2013, the over-issuance of currency in the previous few years had brought serious inflation and hot money was rampant. People were looking to buy assets to preserve and increase their value. Bitcoin's anti-inflation properties fully satisfied people's needs. Coupled with the first Bitcoin halving in November 2012, the price of Bitcoin rose from US$13 at the beginning of the year to US$1,147 in 2013, an increase of more than 88 times.

In 2016, the Prime Minister of India launched a demonetization campaign, but there were too few exchange options. In order to prevent their wealth from disappearing overnight, Indians purchased Bitcoin to protect their wealth. In 2016, Brexit and Trump's election as US president also occurred. At the same time, the Federal Reserve began to raise interest rates and shrink its balance sheet. Many funds chose Bitcoin as a safe haven. Therefore, at the end of 2016, the price of Bitcoin reached 6,000 yuan, which doubled compared with the end of 2015. It was the best-performing asset in 2016.

3. Supervision policy

There are both unfavorable regulatory policies and good regulatory policies.

For example, in December 2013, the People’s Bank of China and five other ministries and commissions issued a notice on preventing Bitcoin risks, and on September 4, 2017, seven ministries and commissions including the Central Cyberspace Administration of China and the Ministry of Industry and Information Technology issued an announcement on preventing token issuance financing risks. These regulations have seriously affected the market.

The most obvious example of good regulation affecting the market is the launch of regulated Bitcoin futures in 2017. On December 1, the U.S. CFTC approved CBOE and CME to launch Bitcoin futures. The two companies launched Bitcoin futures product trading services on December 11 and December 18 respectively. Good news is generally reflected in advance. In mid-November 2017, the price of Bitcoin was around US$7,000. On December 1, Bitcoin reached US$10,000. On December 11, Bitcoin surged to around US$15,000. On December 17, the price of Bitcoin reached an all-time high of over US$19,000.

In August 2013, the German Ministry of Finance regarded Bitcoin as a legal payment method and enjoyed the same status as legal tender. This also promoted the formation of the digital currency bull market in 2013.

Conclusion

Judging from historical market data, block halving will generally bring a wave of market prices in advance, with an uncertain increase. Litecoin surged up to 5 times during the last halving, but eventually fell back to 2 times its original price. After Bitcoin's halving in 2012, it increased more than 80 times. Bitcoin's halving in 2016 itself only increased less than 1 times, but it increased dozens of times in 2017.

Perhaps we can summarize a historical experience: Halving itself can bring single-digit increases, but it is a catalyst. If it is combined with other factors such as the increase in intrinsic value brought about by technological progress, large-scale capital inflow from mainstream financial institutions after compliance, and severe inflation, there will be two to three-digit increases.

In other words, the halving will bring about a wave of market trends, but the real surge cannot rely solely on the halving.

The second half of 2019 will be a wonderful time. 1. Litecoin has completed its halving; 2. The Bitcoin halving market has begun to warm up; 3. The Lightning Network is expected to penetrate into various products and services on a large scale; 4. The final results of the US SEC's approval of ETFs and CFTC's approval of bakkt physical futures; 5. The investment of financial giants.

With the above factors, are you confident about the digital currency market in 2020?

Source: Golden Finance