The surge in global inflation rates is prompting many individuals to shift towards cryptocurrencies like Litecoin. With over half of the countries worldwide experiencing inflation rates exceeding 8.7%, people are seeking an alternative solution to traditional currencies.
Cryptocurrencies such as Bitcoin and Litecoin offer a potential solution. They control the limited supply and issuance rate through the innovative halving mechanism. This process makes these cryptocurrencies scarce like gold, thereby enhancing their value stability.
Litecoin, currently ranked 11th in the cryptocurrency market capitalization, is about to undergo a halving event. This has attracted the attention of both miners and investors.
The halving event will impact Litecoin in several ways. The increased number of miners can potentially raise the mining difficulty, requiring more resources for stable output. This may cause some miners to exit if the market price doesn’t align with the mining output.