Litecoin (LTC) Is Likely the Safest Cryptocurrency Right Now as the Halving Mania Takes Over – Wccftech

January 10, 2023 by No Comments

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As the wider crypto world continues to battle the ongoing fallout from the spectacular collapse of the FTX exchange, not to mention the immense contagion that would result if the Digital Currency Group (DCG) goes under, Litecoin (LTC) is likely to serve as a relatively robust safe haven in 2023, owing to the cryptocurrency’s halving event scheduled for later this year.

For the uninitiated, Litecoin is now the second major cryptocurrency after Bitcoin to still use a Proof-of-Work (PoW) transaction authentication mechanism. Bear in mind that Ethereum switched to a Proof-of-Stake mechanism last year. Under a PoW paradigm, miners compete with each other by performing cryptographic computations in order to win the right to authenticate a given transaction and incorporate it into the blockchain. For this service, miners are awarded a specific reward of 12.5 LTC per block. After the halving event in August 2023, Litecoin’s mining reward will be cut in half to 6.25 LTC.

According to Rekt Capital, Litecoin bottomed 122 days prior to its first halving, rallying 820 percent heading into the event. Thereafter, LTC registered gains of 14,200 percent.

Similarly, Litecoin bottomed 243 days ahead of its second halving, registering gains of 550 percent heading into the event. Thereafter, Litecoin clocked in further gains of 1,574 percent. Interestingly, unlike Bitcoin, Litecoin registers most of its halving-related gains only after the seminal event has passed.