A lot of information can be garnered from looking at any cryptocurrency’s network hashrate. In the case of Bitcoin, the opinions regarding this matter have been well-documented over the past few years. Litecoin, on the other hand, has noted a very significant drop in mining power over the past few months. It appears the recent block reward halving hasn’t had the effect most people had hoped for or gambled on.
Where are the Litecoin Miners Going?
When the Litecoin block reward was halved successfully, traders and enthusiasts expected big changes. Not only would the price increase, but they also expected to see the miners stick around for a significant amount of time. Despite those initial hopes and expectations three months ago, things have turned out very differently. Both the Litecoin price and the altcoin’s mining power have decreased in spectacular fashion. So much even that one could argue a worrisome situation has been established.
As far as the Litecoin mining power is concerned, the most recent dropoff cannot be ignored. Despite reaching a peak of roughly 520 terahash per second in July of 2019, the network’s mining power now dropped to just under 200 Terahash per second. More importantly, the hashrate continues to drop at an alarming rate, which makes things only more worrisome. It appears the current price and block reward makes it impossible for miners to make a profit unless very specific conditions apply.
Turning the Ship Around?
It is rather apparent the current situation doesn’t look too promising for Litecoin. This massive decline in hashrate can be caused by many different events. Other cryptocurrencies may prove to be more profitable to mine, for example. Another reason is how the previous hash rate spike was triggered by a company or group of individuals, and they have now pointed it elsewhere. After all, the current hashrate is still on par with the levels attained throughout February of 2019.
One thing is fairly obvious: mining Litecoin isn’t as popular as it had been just a few months ago. This is a clear example as to how a block reward halving isn’t always a happy event. Although there was initial excitement – for obvious reasons – things have certainly quieted down ever since. There is a genuine chance things will turn around again in the future, albeit that may primarily depend on the Litecoin price moving forward. Right now, things are not looking too promising in that department, but these markets are unpredictable at all times.
Can it Happen to Bitcoin too?
This current situation has sparked an interesting debate on Reddit. Many people wonder if Bitcoin’s block reward halving of 2020 could see a similar reduction in hashrate accordingly. Many people expect the Bitcoin value to soar after the halving, but a lot of people had high hopes for Litecoin’s value in this regard as well. History may very well repeat itself with the world’s leading cryptocurrency, yet it is still too early to draw any real conclusions.
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