Abstract : In the ChainDD’s exclusive interview with PZ, the general secretary of the Litecoin Roundtable Forum, he said that the wave of the small bull market brought by Litecoin’s halving is a preview of the big bull market in the next year. If there is no special industrial black swan, there will be a brilliant situation next year.
According to the Litecoin blockchain browser, the Litecoin currency block reward was officially halved at 18:16 on August 5, 2019, with a block height of 1680000 and block reward of 12.512 LTC. The first halved block was broadcast at LZo1qx6S5JEVh43KahTFBdvnkVFeQCz9Ze.
At this point, the topic of “half of the Litecoin reward halving” in the digital currency market came to a close, and the next one to appear on the stage was the “half of the bitcoin reward”. What are the implications of halving on the halving after Bitcoin? PZ, the general secretary of Litecoin Roundtable Forum, accepted an exclusive interview by ChainDD. He said that the wave of the small bull market brought by Litecoin halving is a preview of the big bull market in the next year. If there is no special industrial black swan, next year there will be a big market.
The following is the record of an exclusive interview with PZ, the Secretary-General of Litecoin Roundtable Forum PZ, and it is edited by Chaindd as follows:
Litecoin founder Charlie Lee said in an interview last month that halving the LTC block rewards that may come will lead to a slump in the LTC market and a drop in prices. What do you think?
PZ: Halving is usually good. However, all the benefits are cashed in advance. Mature funds will be laid out in advance. Smart person will buy in advance when they know the price will be raised, rather than buy after the increasing of price. By the same token, when the cash is realized, it is the time when these smart financial positions are fulfilled, and because there is a certain bit of profit reduction in the next year, these funds will definitely choose to leave early and start to layout in the bitcoin market. The market is complex and interesting. The speculation of bitcoin must be taken flexibly while following the situation.
The Litecoin will soon be halved again. From the perspective of community promoters, what impact will it have on the Litecoin ecosystem?
PZ: The impact of Litecoin's halving is multifaceted:
Firstly, according to the most basic economic principles, in a stable supply-balanced market environment, if the supply is reduced by half, it will inevitably lead to a rise in commodity prices, so we will see that because Litecoin will be halved this year, so in the end of 2018, there were funds to deploy Litecoin, hoping to get the bonus of halving Litecoin;
Secondly, because Litecoin 's output will be halved. If the price of Litecoin is not doubled after halving, then there will be a lot of Litecoin miners who have relatively high electricity cost facing the loss. Some mining unions will choose to shut down or dig out other currencies. Therefore, after halving, Litecoin’s computing power is likely to have a certain range of fluctuations;
Third, fortunately, there is currently no second independent currency that uses the same algorithm as Litecoin, so we don't need to worry that Litecoin will face the threat of computing security because of halving.
In the short term, the pressure on the Litecoin miners will increase, and what adjustments will occur in the miners’ market?
PZ: Some miners with high electricity bills may shut down the machine, or see if there are other small currencies in the market with the same algorithm. There will be small fluctuations in the power of calculation.
Despite the turmoil in the BCH fork war, it cannot be denied that the role of Litecoin as a bitcoin supplement began to weaken. What do you think about the threat of Bitcoin's forked coin to Litecoin?
PZ: The birth of BCH is a manifestation of the failure of the Bitcoin community to reach the maximum consensus. When I convened everyone to hold the Bitcoin International Roundtable Forum meeting, the purpose was to maintain the Bitcoin community to continue to be united, and everyone can stay in this community to contribute their own strength to the development of Bitcoin. However, it is a pity that due to the interference of various forces in the middle, the upgrade of the original SW2X agreement was not fully completed. Only the SW part was completed, which led to the emergence of 2M as an independent part. This is the birth of BCH that everyone now knows.
BCH is taking its own unique development path. LTC is currently the most important pioneer of BTC. There is a significant difference between the two. Because of the different development paths, they are not rivals in the traditional sense, so they are not threat of certain other.
The current user scale, network value and market value performance of Litecoin are very good. What will future development be like?
PZ: I said on December 23, 2018, that there are European funds that have taken a fancy to LTC. This is actually a good signal because traditional funds like this are conservative and they will only choose products or projects that are more mature with predictable and manageable risk.
This shows that Litecoin is safe and reliable after eight years of development. Therefore, I believe that as long as Litecoin adheres to the safe, stable and reliable development ideas, its future is rather promising.