Litecoin (LTC) Bleeds Hashes as Miners Abandon Ship

Litecoin (LTC) Bleeds Hashes as Miners Abandon Ship

The Litecoin network was a boom-and-bust story in the summer of 2019. Miners started to abandon the coin as soon as the block reward went through a halving on August 5.

Litecoin Reward Halving Dispersed Miners

The cutoff date for Litecoin mining arrived exactly on August 5, when the block reward fell from 25 LTC to 12.5 LTC. The event, repeating every four years, also caused the price to shortly boom to $140, only to unravel later. LTC currently trades at $71.28.

The hashrate dropped off from 523 terashes per second to a recent low of 295 hashes per second. Only in August, the network lost 30% of its mining power.

LTC keeps its spot among leading altcoins, with high liquidity and a relatively good performance this year. But the drop in hash rate may be a bad sign for the future of the bitcoin network as well.

Bitcoin will go through its third halving in early 2020. For their immense computational efforts in discovering a block, miners will only receive 6.25 BTC. This lowered payout may cause many miners to give up on the network. Right now, bitcoin mining is near a peak, almost touching 100 million terahashes per second.

Mining at a Loss

But the block reward may not be the only reason for weak Litecoin mining. A generally negative attitude to altcoins may be sparking fears for a weak LTC market price that will not pay mining operations.

Calculations also reveal that mining LTC right now is happening only with a small daily loss. The widely used L3 miner is also not enough for a competitive edge to block discovery. Apparently, 12.5 LTC per block does not pay miners sufficiently.

In the past, the Litecoin project has received bad publicity due to a lack of innovation. Now, the coin seems stagnant again, after about a year of more active publicity and innovations. Achievements such as atomic swaps between different networks, as well as the Litecoin Lightning Network, have not created new appeal for LTC.

It is also possible that miners prefer to point their resources to ASIC suitable for the Bitcoin network. This makes the Litecoin network easier to attack, at least in theory. Also, there are multiple smaller coins that may offer higher profitability for Scrypt ASIC machines.

Coins like Verge (XVG) are slightly more profitable to mine than LTC, though the margins are paper-thin, and losses are also a possibility with higher electricity prices. Still, 98% of all Scrypt mining machines are securing the Litecoin network.

Do you think Litecoin still has a chance to survive? Let us know in the comments below.

Images via Shutterstock, Twitter: @SatoshiLite

The post Litecoin (LTC) Bleeds Hashes as Miners Abandon Ship appeared first on Bitcoinist.com.

11.09.2019 / 08:50 21
Litecoin Price and Hashrate Diving Down; Whats Next? Litecoin Price and Hashrate Diving
Litecoins hash rate has declined by over 30% since its block size halving event earlier this month, the latest data shows. Litecoin Trades At Lows
Litecoin Price Rally Halts Post Halving; Whats Next? Litecoin Price Rally Halts Post
Litecoin, the fourth-largest cryptocurrency by market cap, is struggling to maintain its interim bullish bias after reducing its mining rewards by
Litecoin Surges 14% in Post-Halving Spike, Next One in 2023 Litecoin Surges 14% in Post-Halving
All eyes have been on Bitcoin today as the king of crypto cranked ten percent to tap $11,800 during earlier Asian trading. The altcoins have been
Bitcoin Price Set for 2020 Halving Breakout: Mining and Network Activity at ATH Bitcoin Price Set for 2020 Halving
The Bitcoin price appears set for a massive breakout as network fundamentals are at all-time highs (ATH) as the 2020 halving event approaches.
Litecoin Price Analysis: How High Will Halving Hype Push LTC? Litecoin Price Analysis: How High Will
In approximately 179 days, Litecoin (LTC) will undergo a block-reward halving cutting the coin reward for miners from 25 to 12.5 coins. With
Latest Litecoin News: 71.5% of the Total LTC Has Now Been Mined Latest Litecoin News: 71.5% of the
Today, the blockchain project of Litecoin reached a new milestone as there are now 60 Million LTC minted as per information provided by Litecoin.com
Comments (0)
Add a comment
Comment on