In a recent development for Litecoin, the US Commodities Futures Trading Commission (CFTC) has officially recognized it as a digital commodity. The news comes as the cryptocurrency set an all-time high for its hashrate on March 27th, 2023, at block height 2,446,369.
Litecoin’s hashrate has been on a consistent uptrend since June 2021, despite the turbulence in the crypto sector in 2022, which included the Luna-foundation implosion and fraud charges against its founder. The hashrate, which measures the computing power dedicated to mining Litecoin, is an essential metric for assessing network security and strength.
The recent recognition by the CFTC provides greater clarity for investors looking to participate in the crypto market. The classification of Litecoin as a digital commodity means that it falls under the regulatory purview of the CFTC, which is tasked with preventing fraud, manipulation, and abusive practices in the commodities market.
One factor that may have contributed to the increase in Litecoin’s hashrate is the upcoming halving event. In August 2023, Litecoin will undergo its third halving event, which will reduce the amount of newly minted Litecoin by 50%. This feature is engrained in Litecoin’s code and ensures a consistent and transparent monetary policy.
The halving event is expected to make it harder to obtain Litecoin and could potentially increase its value. This presents a potential opportunity for investors to capitalize on the discrepancy between prices and Litecoin’s hashrate.
With the CFTC’s recognition of Litecoin as a digital commodity and the upcoming halving event, the future looks bright for the cryptocurrency. Its highly resistant code ensures consistency and transparency in monetary policy, making it a promising investment for those looking to participate in the crypto market.
Read more:
- Litecoin Price Prediction Before Halving In August 2023
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- Investors Are Bullish On Litecoin As Halving Nears, With LTC Up 10%