Litecoin cryptocurrency was up by more than 140% in 2020. In 2021, LTC showed very fast growth t...
Litecoin cryptocurrency was up by more than 140% in 2020. In 2021, LTC showed very fast growth till May; however, due to some external factors, the situation significantly changed.
The Litecoin price has been through a lot from its launch – going up and down. Its price started at about $3 per LTC and has gone through a number of bubble cycles or "alt seasons."
Eventually, Litecoin closed 2020 at $124.69 (on CoinMarketCap). From December 31st, 2020, to May 9th of this year, the price rose by 211%. After it hit the $400 level, the coin started dropping.
From the period between May 10th and 23rd, it declined by 63.26%. Similar to other cryptocurrencies, one of the big reasons for such a fall is the overall weakness of Bitcoin.
In general, similar and close currencies have tight correlations. It could have been seen that due to the fast growth of the LTC, the coin would have declined. Lastly, the concerns in the United States for higher capital gains taxes played a role in the financial industry.
A Bit of Litecoin History
Litecoin (LTC) is a so-called digital peer-to-peer currency integrated into open-source software. Technically, the Litecoin project is very similar to the Bitcoin system.
Litecoin production and transmission are based on an open-source encryption protocol. There is no central control.
With this in mind, all transactions, balances, and expenses are managed by a peer-to-peer network. Litecoin is created on the basis of a cryptological hash function, which in turn generates blocks.
Litecoin can be exchanged for Bitcoin and fiat money. The processing in question usually takes place via online exchanges (cryptocurrency exchanges).
Litecoin was created by a former Google employee, Charlie Lee, in 2011. The cryptocurrency was created based on the Bitcoin protocol but differs in terms of the hash algorithm used.
Furthermore, it also differs in hard caps, block transaction times, and some other factors.
Litecoin was released via an open-source client on GitHub on October 7, 2011. On October 13, 2011, 5 days later, the Litecoin network went live.
Lee's goal was to create a light version of Bitcoin with Litecoin. Developers have always stated that you can consider Litecoin to be the silver version of Bitcoin.
Litecoin differs from Bitcoin in the prioritization of the transaction confirmation rate, which is approximately 2.5 minutes per block.
However, the reality is that Litecoin users will have to wait up to about 30 minutes for their transaction to be processed due to network congestion.
Why Is Litecoin an Attractive Investment Asset?
Litecoin is especially faster at handling payments than Bitcoin and is an excellent, proven complementary alternative.
It's a very cheap, super-safe highway for making payments - especially when it comes to micro-transactions, like, for example, when paying for a cup of coffee.
In addition, the Litecoin community is working on the implementation of all kinds of new fintech gadgets that are actually intended for Bitcoin.
Litecoin is now working on the implementation of the lightning network protocol and applications for smart contracts and privacy (including confidential transactions & MimbleWimble).
Litecoin is certainly light and cheap, but above all in good hands with fantastic ambitions. Litecoin has a bright future as a classic and reliable altcoin.
Most investors see Bitcoin as gold and Litecoin as silver. Litecoin was developed as an alternative to Bitcoin and developed as a lightweight that solved some shortcomings of Bitcoin.
It is a classic altcoin with more than 6 years of experience and development behind it. Software updates and new tech can be easily added to Litecoin.
As with Bitcoin, there is also a built-in scarcity. In total, only 84 million Litecoin can be mined. Litecoin can be considered a much cheaper and faster alternative.
In fact, Litecoin is underestimated relative to other cryptocurrencies. Bitcoin is slower and more expensive to use compared to Litecoin.
The fact that Litecoin is fast and cheap has advantages, especially since people in third world countries without bank accounts can still get Litecoin cheaply and quickly.
Why is Litecoin Going Up?
Litecoin is a superior alternative to fiat money when compared to Ethereum. It was not developed as money, but it can certainly be used as such. You could rather consider Ethereum to be crypto gas.
In addition, Ethereum is a much more difficult concept to grasp than Litecoin. Litecoin is just digital p2p money with a built-in scarcity that actually works faster as a transaction medium.
This makes adoption much easier and does not require much knowledge. Simply install the wallet app on your smartphone, and you will have your own Swiss Litecoin bank account with which you can actually conduct transactions almost immediately.
As the popularity and price of Bitcoin increase and, therefore, the transaction costs rise, cheaper and faster alternatives will be sought. This is Litecoin, baby.
Litecoin Price Predictions for 2021 by Crypto Experts
The cryptocurrency market is very volatile, which means that predicting reliable prices of cryptocurrencies is indeed one of the most difficult things to do.
George Tung, one of the most respected cryptocurrency analysts, bet on LTC for almost 3 years already. Although his forecast for 2021 was far too overestimated ($1,500 by the end of 2021), Tung still sees potential for Litecoin to grow.
Another famous expert, Dan Gambardello, predicted a meteoric rise of LTC in 2017 and now forecasts future growth of LTC in 2021 up to $1,000.
Let’s have a look at some recent expert publications regarding their statement and LTC prediction and its market price. They may give us food for thought about Litecoin coin review:
TradingBeasts
TradingBeats estimates some small declines in July, where the maximum value can reach up to $151.73 with a minimum of $103.17. However, according to its analysis, from July, the LTC will show some small but positive rises each month.
By December of 2021, it will have a possible maximum value of around $160 with an average of $128. Overall, the platform forecasts Litecoin’s projection growth.
Wallet Investor
Like many others, Wallet Investor’s Litecoin price predictions are based on small declines of LTC in the short term.
The coin is expected to have an average value of $143.25 at the beginning of July, with a maximum price of $202.15. Litecoin will definitely show a long-term positive balance starting from September.
Despite the small dynamics right now, Wallet Investor predicts that Litecoin has the potential to grow up to $182 in the second half of this year.
According to the analysis of WI, until November 2021, the price will be relatively stable (an average of $132). There are no future big crashes to expect, and investors do have to consider this currency for investment. (Continue reading with LiteFinance)
