Litecoin’s Hashrate Tests Highest Range Again as Coingate Campaigns Against ‘Hodling’
The Litecoin network hashrate is at its highest range since its inception. Though the push to an all time high (359,437T) on April 9 could not be adequately tied to Litecoin’s block halving coming in four months, it is a boost to its network’s state. The build-up has been somewhat slow since the hashrate nosedived below half its current range by the end of 2018 despite it had a meteoric rise earlier in the year. Since its inception, this speed at which mining machines on Litecoin operate has only been close to being this high in May 2018.
Significance to price
The rise in hashrate shows the new height of mining activities on the network. It says a lot about the network’s safety against any 51% attack. However, this is not necessarily a bullish sign for Litecoin’s price to rise. Rather, it is an indication that more hands have joined the rigs to probably get more Litecoin before its block reward supply gets halved by August.
Nonetheless, it is possible for the price to follow the hashrate rise since Litecoin miners would have to sell their newly-mint coins for a higher price to pull a profit. Provided the demand for the coin stays the same even as the supply is reduced, its price could go up. Although Litecoin’s global Google Trends search in the last 12 months has seen an uptick, as well as its Lightning Network capacity, it remains to be seen that the market has not already priced in the effect of the upcoming halving on the asset’s value.
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— CoinGate (@CoinGatecom) April 9, 2019
Coingate against ‘hodling’
The success of a new campaign by Coingate exchange is likely to push the likes of Litecoin even further. Though still being used to stir discussions among the crypto community at the moment, the platform is emphasising the need to reach out to more merchants to accept major cryptocurrencies. They believe this discussion, if it leads to the expected outcome, stands a chance to open up the crypto market for wider adoption once holders of cryptocurrencies ditch the idea of ‘holding’.
Coingate claims ‘hodling‘ (or holding on to an asset until the value rises) is slowing down crypto adoption – and with a proof – where as there are “better ways to use digital assets rather than just holding them.” The holding behavior harms the whole crypto industry, Coingate notes in a post. Rather, they prescribe a new approach: CryptoRecycle which seeks to follow the “spend and replace” crypto thinking. They suggest that the approach unites both hodling (investing and waiting) and spending (using crypto for payments) into a single strategy.