Bitcoin, Litecoin and various other cryptocurrencies operate by a PoW (Proof of Work) mechanism, essentially securing the network by requiring miners to perform a certain amount of work in order to record transactions. In return for their work, miners are rewarded with the currency they are mining. When halving occurs it means that the rewards go down. Read on to find out why this could be a bullish signal for LTC, ETH and ORBN.
What is a halving event and why could it cause the next bull run?
A halving event refers to a 50% reduction in the block reward that miners receive for adding a new block to the blockchain. As rewards for miners decrease, they become less incentivised to mine, and this means that the asset, in this case Litecoin, becomes more scarce, potentially increasing prices and demand. Whilst most people see halving as a bullish signal it should be noted that an alternative argument says that the halving may force miners to sell more of their LTC to cover their costs, thus increasing sell pressure.
If we examine the history of BTC’s halving events (which occur every 4 years), we see that each time a bull run has occurred afterwards. The most recent halving was 11th May 2020. On that day, bitcoin’s price was $8,821. By April 14, 2021, bitcoin’s price rose to $63,233 (a 617% increase from its pre-halving price!) As seasoned crypto investors know, when Bitcoin rises, the market follows, meaning that Ethereum and most other altcoins rise as well.
Litecoin has had two halving events so far, and whilst history does not always repeat itself, what we have seen in the past is that firstly there has been an LTC price rise leading up to the halving, and secondly (and most importantly for ETH, ORBN and other altcoin and Bitcoin holders) it has resulted in bull runs after the event.
Data from TradingView proves this by showing us that the total crypto market cap increased significantly after previous Litecoin halvings.
Whilst ETH and ORBN are not PoW cryptos and therefore do not need miners, in a bull run, all good tokens and coins usually rise, often starting with Bitcoin and Ethereum and then continuing with altcoins like Orbeon Protocol’s ORBN.
What is Orbeon Protocol?
Orbeon Protocol is a decentralized web app that is launching on Ethereum. It will allow ordinary investors to purchase tokens and coins and rewards from companies that are looking for funding. This means that if Litecoin halving causes a bull run, Orbeon Protocol will be an excellent place to find deals that may also rise with the market. Orbeon Protocol is in its final stage of presale with its native token ORBN for sale at $0.0362, going live at the end of the month for a minimum of $0.04, with analysts predicting a rise as high as $0.24.
Will history repeat itself and lead ETH and ORBN holders to big gains?
It’s impossible to know if history will repeat itself, though what we do know is that much of trading, whether stocks, forex or crypto, seem to revolve around recurring patterns, and as such these patterns can become a self fulfilling prophecy, as traders tend to use the same technical indicators.
On the other hand much has changed since the previous two bull runs, with the global and macroeconomic situation being very different, and the fact that institutional investors can now easily invest in Bitcoin and other alts. This does not invalidate the possibility of a halving related bull run but is something to take into account, as well as any other world events that affect the markets.
If history does repeat itself then it seems very likely that Ethereum and ORBN and other alts will increase, therefore this current bear market, and the final presale stage of Orbeon Protocol, could be an ideal time to fill your bags with these and any other of your favourite cryptos, at bargain prices.
Find Out More About The Orbeon Protocol Presale
Disclosure: This is a sponsored press release. Please do your research before buying any cryptocurrency or investing in any projects. Read the full disclosure here.
Source: null ts