Mining is becoming less attractive

Endy Callahan

After halving, the hashrate of the Litecoin cryptocurrency continues to decrease. From the maximum values, the indicator fell by more than 70%. Before reducing the reward in half from 25 to 12.5 coins per block, the network's hashrate was 523.7 TH/s, now the parameter has set the minimum value for the year-149.4 TH / s. In the article "What is a hashrate" you can learn more about this indicator.

Why do miners leave Litecoin mining

The value of the digital currency, which is the sixth largest by capitalization in the world, in July was at the level of 142 dollars, in July the asset was traded on the exchange for 45 dollars. As a result, we can talk about the collapse of the price by 68%.

The all-time record price for Litecoin was $ 400, which was at the end of 2017. Since then, the collapse has reached 90%. Then the hashrate of the network was at the level of 100 TH/s. A year later, the value of the coin dropped to $ 23. Many miners and traders expected halving, which spurred the growth of each of the indicators. However, when the reward fell 2 times, the asset price and hashrate began to decline.

The f2pool mining pool believes that even the most efficient equipment for litecoin crypto mining allows you to make a profit of no more than 72 cents per day at the cost of electricity at 5 cents per 1 kV/h. Due to the mechanism of changing the complexity of mining, the stability of the network is ensured. Interest in the coin from the miners drops sharply.

During the existence of Litecoin, transactions worth more than half a trillion dollars were made

Litecoin, which is a fork of Bitcoin and is called "digital silver", has been around for more than eight years. This cryptocurrency is one of the oldest in the space. In terms of market capitalization, it holds the 6th position.

The Litecoin coin was launched on October 13, 2011. It was then that began the countdown of the history of cryptocurrency The Creator of the coin, Charlie Lee, made the source code of the project widely public. In his tweet, he wrote that over the 8 years of Litecoin's existence, the total amount of transactions exceeded half a trillion dollars.

Now Litecoin Foundation is experiencing big financial problems. Charlie Lee categorically denied suggestions that the company is on the verge of bankruptcy. He asked the community not to spread false information. The top manager noted that today the company has funds that will last for 2 years of successful work.

In the summer, Litecoin employees ' salaries were reduced. They themselves put forward this initiative to reduce the pressure on the company. About 80% of the Litecoin Foundation's funding comes from donations from Charlie Lee.

Charlie Lee made a promise to support the Litecoin Foundation

The Creator of the Litecoin coin promised to provide full support to the project even in a crisis situation. Mr. Lee said that since 2017, every 4 out of 5 dollars of donations belong to him. The prolonged downtrend has hit the organization hard. Other cryptocurrency projects are experiencing similar problems.

The head of Litecoin noted, "The goal is to make Litecoin self-sufficient and to ensure that donations, sales of souvenirs and partnerships are fully sufficient for Its work. Until then, I will provide the required financial support."

The head of the Litecoin Foundation, Xinxi Wang, commented that the collapse of the market led to a decrease in donations in 2019. He hopes that the audit will increase revenue.

Mr. Xinxiang noted, "I think there is no connection between enthusiasm and the number of donations. One of the reasons is that the number of donations decreased due to the collapse of the market. Another reason is the low cost of Litecoin. In this quarter, donations amount to hundreds of thousands of dollars."

Charlie Lee pointed out the progress in the search for new partnerships. For example, we have recently established a partnership with the Miami Dolphins FC.

The main focus is on creating new products based on Litecoin. Among them is the integration of MimbleWimble technology, which focuses on user privacy.

Alexander Seidelson, the head of Beam, confirmed that an open discussion was being held in this direction. The developers of Beam offered Litecoin assistance in improving the design and architecture.

The Litecoin Foundation partner is David Burkett, who created the Grin digital asset.

Beam supports atomic swaps for Bitcoin and Litecoin, the company has developed an iOS app

The creators of the private Beam cryptocurrency based on the MimbleWimble Protocol integrated support for atomic swaps on Litecoin and Bitcoin into the client. The question only concerns the command-line interface that allows you to place an atomic swap order. To achieve this goal, there must be a full Beam and Litecoin/Bitcoin node.

Developers who focus on high Beam privacy have announced the creation of a mobile wallet for the iOS operating system. Before that, the app was already available for Android OS.

The developers noted: "Now Beam crypto wallets are available on the largest mobile and desktop systems. On the MimbleWimble Protocol, the coin is supported around the clock and everywhere."

The situation in Litecoin raises concerns. On the other hand, the company has a rich history, developed community and great popularity. A number of experts believe that this is the best time to buy cryptocurrency. Of course, it is important to take into account the risks and invest the amount that will not be sorry to lose. If Litecoin does better, the value of the coin will simply soar.