Trader opinion
LTC (Litecoin) is a widely recognized cryptocurrency whose value fluctuations have always attracted much attention. LTC’s halving event is a high-profile milestone, which has triggered widespread discussion about the opportunities and risks this event brings. $LTC
Opportunity Perspective LTC halving is an incentive mechanism designed to control the growth rate of the number of virtual currencies, thereby maintaining its value stability. Through the halving, the supply of LTC will be reduced by half, which may lead to a renewed perception of value scarcity and prompt more investors to invest in it. The past Bitcoin (BTC) halving event can be used as a reference, which helped Bitcoin add more recognition in the market and achieve long-term growth. Therefore, the LTC halving also provides a good opportunity for investors, who can take this opportunity to participate in the market and hopefully gain returns in the long term.
Risk Perspective However, the LTC halving also comes with certain risks. First, the market's reaction is unpredictable. Although past Bitcoin halving events have shown strong growth trends, it does not mean that LTC will perform the same. The market may overreact to the halving event, resulting in larger price fluctuations. Secondly, with the halving of LTC, miners’ profits will also be halved. This may cause some miners to quit, affecting the security and stability of the entire network. In addition, there will be a smaller supply of LTC for a period of time after the halving, which may lead to short-term price fluctuations.
How to seize opportunities and control risks When facing the opportunities and risks of LTC halving, investors should proceed with caution. First of all, it is very important to understand and study the LTC ecosystem and the situation before and after the halving event. By mastering relevant information, investors can better understand the current situation and future development potential of LTC. Secondly, investors should formulate a clear investment strategy and make flexible adjustments according to market conditions. Whether it is long-term investment or short-term trading, investors must fully consider their risk tolerance and profit expectations. In addition, diversifying investments is also an effective way to reduce risks. Don’t bet all your chips on the LTC halving event.
Miners' views
Essentially, because $LTC uses the Scrypt algorithm, those who have been in the mining circle for a long time are not unfamiliar with this algorithm, and he has a professional machine. Before May 21, it was the peak moment of LTC, and the price of the currency was as high as 400u. At the same time, the 5.19 incident was gradually approaching, and the miners were the first to suffer the most. At that time, the Ant L7 machine was also released, and the price was more than 300,000. Many people's machines have not been able to recover their investment this year. I list the following points for miners in this halving for reference only.
Earnings halved: LTC halving means that the rewards obtained from mining are halved. The original reward for mining a block will be reduced by half, which will directly affect the profitability of miners. For miners who rely on mining for revenue, this could lead to a decrease in their profitability. Some miners who cannot bear the greater cost pressure may be forced to exit the market.
Increased competition: As mining rewards are halved, competition between miners will also intensify. As rewards are halved, miners need to mine more blocks more efficiently to remain profitable. This may lead to more miners entering the market and increase the overall network's computing power. Increased competition may lead to an increase in mining difficulty, and miners will need to invest more resources (computing power, electricity costs, etc.) to maintain mining activities.
Mining equipment update: In order to cope with the halving of mining rewards, miners may need to update and upgrade their mining equipment. The new generation of mining machines usually has higher computing power and energy efficiency, which will help miners improve mining efficiency and profitability. However, equipment updates also require additional investment. For miners who do not have enough funds to update their equipment, they may face the risk of being eliminated by the market.
Long-term impact: Although the LTC halving brings certain challenges to miners, it also helps protect and stabilize the value of LTC. The halving of mining rewards will control the supply of LTC and help maintain the scarcity of LTC. From a long-term perspective, this control will help increase the value of LTC, thereby providing more attractive returns for miners.
Currently, LTC is mined through professional machines. Due to specific algorithms, normal GPU mining of LTC is undoubtedly a waste of electricity. Below is a reference table and income table.
It can be seen that among dozens of professional machines, only Ant L7 and Thor can maintain positive profits. Bitmain’s current L7 is priced at US$5,882.
For a machine like L7, we can calculate an approximate payback period through simple mining income, because L7 can perform dual mining $DOGE or other projects with Scrypt algorithm. Here we only introduce one of LTC Payback cycle.
You can clearly see the daily, monthly, and annual net income. According to the current currency price, it will take 5-8 years to recover the capital.
Ltc-20
Because of the popularity of BRC-20, this May led to the start of LTC-20. LTC-20 is the first protocol type in the LTC ecosystem and is of groundbreaking significance. LTC-20 is a token protocol launched on the Litecoin network by developers in the community. The same concept as the original BRC-20, LTC-20 provides users with the function of casting text, pictures, images, audio, etc. on NFT.
LTC-20 is faster and cheaper than BRC-20
Based on the characteristics of Litecoin superior to the Bitcoin network, Litecoin produces a block every 2.5 minutes (Bitcoin 10 minutes), can obtain faster transaction confirmation, and the gas cost is extremely low (each transaction is less than 0.1u, Bitcoin Each transaction ranges from a few U to hundreds of U), and has more advantages in terms of block production speed, flexibility, transaction fees, etc.
LTC is in its early stages and the ecosystem has not exploded
For BRC-20 and ORC-20, LTC-20 does not currently have any hot projects in the ecosystem. It may be waiting for the halving of LTC to use the market to take advantage of a wave of momentum.
Summarize
According to the current currency price and the peak price during the 21-year bull market compared with miners' income, I personally think that the top range of LTC during the cycle halving has not yet reached the top. If it is now the top after the halving, I believe that based on the miners' From a perspective, L7 cannot protect its capital, and no one will pay for it.
LTC halving is both an opportunity and a risk. For experienced investors, this is a good opportunity to capture market opportunities, but they also need to protect their investments through prudent risk control. For ordinary investors, they should conduct sufficient research and rational analysis on the LTC halving, and make decisions based on determining their own investment capabilities and risk tolerance. In short, seizing the opportunity of LTC halving and controlling risks require investors to have in-depth understanding and wise decision-making capabilities.
