Litecoin and Bitcoin Cash halve preview, what will happen to the currency market next year? 

The recent market is not good, and it seems that more and more people are pessimistic about the halving market next year.

Pessimism is evident.

What will happen to the halving? This is the issue that everyone cares about most.

To understand how Bitcoin is halving before and after, Litecoin is a good reference.

Litecoin halving is a preview of Bitcoin halving next year. Litecoin and Bitcoin have historically been thought of as having a special relationship. Many innovative technologies are tested on Litecoin before being deployed on the Bitcoin network. Whether it's testing Segregated Witness for Bitcoin or Lightning Network, Litecoin has done its best.

Therefore, Litecoin has always been considered as a "testing field" for Bitcoin, paving the way for its development and pioneering.

The Litecoin rose from 23 US dollars on December 13, 2018 to 145.9 US dollars on June 22, 2019, before the halving, and the price has more than 6 times.

At 6:18 pm on August 5, with the smooth mining of block 1.680 million, Litecoin (LTC) successfully reduced its second production. Similar to the Bitcoin mechanism, Litecoin also reduces its output approximately every four years, and the mining reward is halved from 50 LTCs until all the Litecoins are fully mined. Currently, Litecoin (LTC) mining rewards have been reduced from 25 LTC to 12.5 LTC per block.

In the second halving, the market trend of LTC in the past six months is roughly the same as that in the first halving. The higher prices driven by the reduction in production are concentrated in the previous months.

In general, the price of digital currencies before the halving has been very obvious. There have been two halvings in the past, but after the halving, no significant increase has been found. It can be clearly seen that more than a month before the halving, the price of Litecoin reached its high level at that time, and then went down after halving.

Let's look at the movement of Litecoin. After oscillating up and down in the first half of the week, after halving, LTC's upward momentum weakened, and then it started a downward trend. From around $ 90 the day before August 5. Has been falling. It can be said that now it is almost back to the price before the start of the first half of the year.

The movement of Litecoin gives us a good reference.

If it is roughly similar to the movement of Litecoin, we really should not expect too much from the halving market.

During the first half of the Mavericks, many people shouted the slogan of Bitcoin's eternal bull market .

In fact, regardless of bulls and bears, the eternal bull market of Bitcoin is not related to the rise and fall, but the correspondence of fiat currency inflation.

The eternal bull market compares the inflation rate of bitcoin to the dollar, the most widely used fiat currency in the world.

According to historical statistics, the current inflation rate of the US dollar is around 2%.

By May 2020, Bitcoin will usher in a new halving, and the single block reward will be reduced to 6.25 a day.

6.25 6 24 = 900 pieces, 328,000 pieces a year. At this time, there are about 18 million bitcoins in circulation. After the production cut, the annual bitcoin inflation rate is about 1.8%. This is below the 2% level of the US dollar.

Over time, Bitcoin's inflation rate will only get lower and lower. From an inflation perspective, Bitcoin has indeed entered the eternal bull market for the US dollar after halving.

After halving, it is not only expected that the amount of funds will have a real driving effect on the currency price.

These coins mined by Bitcoin miners are also sold. Now 1800 Bitcoins are mined every day, and 1800 coins are multiplied by the current Bitcoin price, which means that it is almost 14,324,180.00 United States Dollar a day Only RMB funds can enter the market to catch the currency price.

If the output of bitcoin is halved and the daily output of bitcoin is reduced from 1800 coins to 900 coins, it means that even if the current price of bitcoin is maintained, only 6,445,882.80 United States Dollar per day can be used to maintain the currency price.

In fact, in addition to Bitcoin and Litecoin, there will be many currencies with reduced production in 2020.

1. ETC, Ethereum Classic expects production cuts to be March 2020

2.BCH Bitcoin Cash is expected to reduce production time in April 2020

3.BTC Bitcoin is expected to reduce production time in May 2020

4.DASH Dash is expected to reduce production time in May 2020

Among them, the most interesting thing is the halving of BCH. Similarly, people take BCH halving as an important reference for BTC.

Regarding the impact of halving BCH on prices, at the 2019 World Digital Currency Mining Summit held in Frankfurt some time ago, dozens of mining giants discussed the halving effect.

All mining leaders are more optimistic. They think that halving may lead to skyrocketing prices, which can even skyrocket several times. Only in this way can miners continue to be profitable and continue to invest in computing power .

If the rate of increase is high enough, not only will the computing power and miners of the BCH network not decrease, it will also attract more computing power to join the BCH network.

And because BCH first halved, it was the first to enter the price bonus period, and it may even suck back BTC computing power, and profit-mining miners may switch computing power to the BCH network because of profitability.

If Bitcoin Cash can get out of the expected market, it can greatly promote people's confidence in the rise of Bitcoin.

As the market improves, various halving benefits are superimposed.