While most people see halving as a bullish sign, it can force miners to sell more of their LTC to cover their costs, increasing selling pressure.
Bitcoin, Litecoin, and several other cryptocurrencies operate using a PoW (Proof-of-Work) mechanism, essentially securing the network by requiring miners to do a certain amount of work to record transactions. In exchange for their work, miners are rewarded with the currency they mine. When it halves, it means the rewards go down. Read on to find out why this could be a bullish sign for LTC, ETH, and ORBN.
A halving event refers to a 50% reduction in the block reward miners receive for adding a new block to the Blockchain. As the miners’ rewards decrease, so does the incentive to mine, and this means that the asset, in this case Litecoin, becomes more scarce, which can increase prices and demand.
Litecoin has had two halving events so far, and while history doesn’t always repeat itself, there has been an increase in the price of LTC which led to the halving. In addition, and more importantly for ETH, ORBN, and other altcoin and Bitcoin holders, this has resulted in bull runs after the event.
Data from TradingView proves this by showing that the total crypto market capitalization increased significantly after previous Litecoin halvings.
While ETH and ORBN are not PoW cryptos and therefore do not need miners, in a bull run all good tokens and coins generally rise, often starting with Bitcoin and Ethereum, and then continuing with altcoins like ORBN from the Orbeon Protocol.
What is the Orbeon Protocol?
Orbeon Protocol is a decentralized web application being launched on Ethereum. It allows ordinary investors to buy tokens and coins and rewards from companies seeking funding. This means that if the Litecoin halving triggers an uptrend, Orbeon Protocol will be a great place to find deals that can rise with the market as well.
Orbeon Protocol is in its final pre-sale stage with its native ORBN token for sale at $0.0362, launching at the end of the month for as low as $0.04, with analysts forecasting a rise as high as $0.24.
Will History Repeat Itself and Lead ETH and ORBN Holders to Big Gains?
It is impossible to know if history will repeat itself, as a lot has changed since the previous two bull runs, with a very different global and macroeconomic situation.
If history does repeat itself, then it seems very likely that Ethereum and ORBN, as well as other alts, will rise; therefore, this current bear market, and the final pre-sale stage of the Orbeon Protocol, could be an ideal time to invest in these, and any of the cryptos, at bargain prices.
By Audy Castaneda
