Charlie Lee and YouHodler Share Their Take on Upcoming LTC Halving
With next month’s upcoming Litecoin (LTC) halving, many analysts predict the price of LTC to appreciate in value. However, LTC creator Charlie Lee has a different philosophy in mind. YouHodler did a deep dive on the subject to see how this event will affect miners and HODLers while also suggesting new ways for crypto lending enthusiasts to profit.
How the LTC halving will shake up the mining community
On July 10th, 2019, LTC creator Charlie Lee held an interview with the Australian crypto news site Micky in which he said LTV halving will be a “shock to the system.” LTC halving will cut mining rewards in half. Hence, a portion of miners will no longer be able to profit and be forced to shut down their operations.
Lee went on to say that “if a big percentage does that, then blocks will slow down for some time.” Less profit means bad news for miners but what does this reduction of LTC supply mean for the coin’s HODLers and the crypto market on the whole?
Will LTC halving increase the coin’s price?
Using simple supply and demand logic, one would assume that with the decrease of mining rewards, and in turn, the decrease of LTC miners, the crypto’s supply will also fall as a result. Hence, with less supply of LTC, the demand will increase followed by the price appreciation. Yet, Lee once again has a different perspective on this matter. It’s not so much a matter of supply and demand but instead, LTC will increase because of the halving anticipation.
Lee states that “a lot of people are buying in because they expect the price to go up and that’s kind of a self-fulfilling prophecy.” Therefore, the price will go up not only due to supply and demand logic but simply because more people are buying into the hype. For those that want to capitalize on this upcoming LTC event, here are a few ways that crypto lending can help.
A YouHodler crypto loan can help you profit from LTC halving; here’s how
With all signs pointing to an LTC price appreciation, there are potential profits to be had from a crypto loan. To prepare for this upcoming event, one could use a crypto loan on YouHodler (with LTV as high as 90%) to buy more LTC now. Then, when the halving occurs and LTC rises in value, that increase in price could cover any small interest incurred on YouHodler’s platform. Hence, this lets you buy LTC for less and without you having to sell any crypto assets in the process.
Another potential method would be to utilize YouHodler’s Turbo Loan feature right before LTC halving occurs. Turbo loans automate a “chain of loans” that uses your original loan from collateral to buy more crypto to use as collateral for yet another loan and so on. Doing this up to five times is a fast, cheap alternative to crypto trading. For example, if the price of LTC increased 10, 20, 40 or 50+ %, a user can easily multiply their LTC holdings at a reduced rate.
There is a multitude of ways to use crypto loans to profit, especially when it’s easy to predict upcoming positive market movements in the case of LTC. YouHodler is happy to share this information with you. So to start preparing your portfolio now, head to YouHodler.com and explore our beneficial crypto loan trading tools.
Furthermore, our support team is on hand 24/7 to help you understand the power of YouHodler’s crypto lending, converting and purchasing abilities.