Dinosaur Coin Species Endangered? Twitter Celebrity Alex: Litecoin Halving Approaching, Coin Price Downturn Signals Warning

Litecoin (LTC), the progenitor of cryptocurrencies that emerged two years after Bitcoin, is set to undergo its halving event in just over two months. This event is generally seen as a bullish event that reduces the circulating supply. A survey conducted by Twitter personality Alex @thiccythot_ suggests that the halving event may no longer have a significant impact on the price of Litecoin, which is considered a "dinosaur" among the old coins.

Litecoin Halving = Good News? Alex: Not Necessarily

Alex stated that the Litecoin halving is expected to occur in approximately 70 days, around August 3rd this year. He believes:

Everyone should understand the "psychology of halving," and even whether Litecoin should continue to exist.

Understanding Litecoin's History First

Alex mentioned that Litecoin was created in 2011 based on Bitcoin, with faster block times and a different mining algorithm. Like Bitcoin, Litecoin undergoes halving of mining rewards every 4 years to reduce currency inflation and increase scarcity. In the history of cryptocurrencies, Litecoin is a true "dinosaur."

Halving Implying Price Increase?

Alex explained that the main reason is: halving the rewards for miners will reduce structural selling pressure. "Less selling = higher price."

In the past three Bitcoin halving events, the price of Bitcoin has shown a parabolic upward trend. Therefore, most people have already seen halving as a bullish indicator.

This narrative attracts everyone across the intellectual spectrum.

Does Halving Always Mean Price Increase?

Alex believes that a halving event is not always a guarantee of an increase in price.

He explained that "halving" reduces the reward quantity, which reduces the diversity of participants who can profit from mining and securing the network.

Therefore, under unchanged conditions, each "halving" comes at the cost of increasing scarcity, weakening network security.

He referenced an article "Decentralized SoV - PoS vs PoW" on decentralized value storage - Proof of Stake vs Proof of Work, stating that when people bet on halving events, they are essentially voting confidence in the protected network security.

The 2024 Bitcoin halving may strongly integrate various bidders, as the survival of Bitcoin is valuable.

Litecoin Halving Bullish? Not Necessarily

Alex mentioned that despite the approaching Litecoin halving, there hasn't been a strong and powerful bidder for this "digital silver."

From past experiences, Litecoin's price is likely to peak about 50 days before halving, but it's uncertain if this pattern will repeat.

"But the stupidity of the coin circle always surprises me," he stated.

Litecoin Fading, Hope Still Alive?

Alex mentioned that the current market's indifference to the Litecoin halving event may be a sign that its network security isn't worth saving. Since 2019, the market has seen more innovative and eye-catching cryptocurrencies emerge, overshadowing Litecoin.

"But honestly, I think Litecoin still has a chance to continue existing," Alex said.

After talking to many people, Alex found that they still want to participate in the halving event. It's just that so far, there hasn't been a strong bullish convergence.

Litecoin LTC-20 in Ambush?

Alex mentioned that since the Litecoin community introduced LTC-20, a fork based on Bitcoin's BRC-20 token standard on May 3rd, Litecoin's on-chain activities have been heating up, with trading volumes hitting historic highs in the past week.

The number of active Litecoin addresses reached its highest level last week, with various LTC-20 shitcoins attracting speculators to gamble.

However, Litecoin's on-chain attention and price performance are disconnected.

Alex speculated that due to the recent weeks' damage to small-cap currencies, now may not be a good time to invest in competing coins and take on risks. However, this also means less competition compared to other narratives.

"Perhaps now is not the time, but I guess if the market decides to save Litecoin, the time is approaching," Alex stated.

Finally, he stated that if there are no signs of saving Litecoin in the next 100 days, I think this will be a good short-term signal for the gradual disappearance of other "dinosaur coins."

Alex's disclaimer: He holds positions hedged with Bitcoin because he believes it's a fairly good risk-return ratio. Not regulated by regulatory authorities, please conduct your own due diligence.