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Litecoin Halving: All You Need to Know Before the Day

Litecoin Halving: All You Need to Know Before the Day

                             Litecoin Halving: All You Need to Know Before the Day

With just one day to go until Litecoin’s (LTC) next halving event,

Cointelegraph sets out all you need to know about the cryptocurrency’s reduction in block rewards. In spite of their reputation for creating price hikes, the lead up to the halving has witnessed a 25 percent decline in valuation over the last month. 

What is halving?

Halving is a process that occurs when the mining reward for a cryptocurrency is reduced by 50%. Miners receive crypto rewards for solving problems that create each new block on a given blockchain. The rewards differ for each cryptocurrency. With Litecoin, miners are currently awarded 25 coins per block. After Aug. 5, miners will only receive 12.5 Litecoins per block. Litecoin rewards halve every 840,000 blocks, a process that occurs every four years. The block speed for Litecoin is roughly 2.5 minutes, with around 576 blocks generated per day. One of the key factors to take into account is that, according to the coding behind cryptocurrencies such as Bitcoin (BTC) and Litecoin, only a certain amount will ever be mined. This distinct characteristic sets it apart from fiat currencies, which can theoretically be printed infinitely. 

Although it’s difficult to say when the final Litecoins will be mined, the Litecoin Foundation estimates that it will be around 2142, when the maximum of 84 million Litecoins will be reached. As of press time, there are 62,983,450 Litecoins in circulation, representing 74.93% of all Litecoins that will ever be mined. This leaves roughly 21 million coins left to be mined up until 2142. Comparatively, it’s estimated that the final few Bitcoins (BTC) will be mined around 2140. 

Halvings are closely followed by investors, as the consequent reduction in mining rewards affects the profitability. Accordingly, this has a knock-on effect on the price. For investors, this can be a mixed bag. According to the theory of supply and demand, halvings should drive up the price of the cryptocurrency. As they receive fewer coins per block solved, miners stop producing them until the work once again becomes profitable. As fewer coins enter circulation, the price consequently goes up, as demand — in theory — will overtake the supply. Although this sounds like a sure-fire win for investors, halvings can bring about even greater instability to an already volatile market. Previous halvings have stoked investor interest, and the upcoming Litecoin event is no exception. According to Google Trends, searches for “Litecoin halving” peaked between June 9 and June 15, although data shows that this trend is once again increasing. Searches for “Bitcoin halving” on Google are typically more numerous than entries for Litecoin, although this trend has reversed as of July 30.

 

What could happen? 

In the time leading up to the halving, miners ramp up operations to maximize their returns until the whole process becomes unprofitable. Miners need to invest in powerful, specialized equipment to take on the computing challenges required for creating blocks. As the difficulty of mining blocks rises, so do electricity costs. Mining is no longer a game for individual hobbyists, with even the biggest mining farms struggling to remain profitable during the so-called crypto winter of 2018. Mining is now a big business, and businesses need to make a profit. So, when profitability falls, activities tend to cease.  The fact that miners will feel the heat after the halving is no secret, with Litecoin creator Charlie Lee predicting that many will shut up shop after Aug 5. Lee told Australian crypto news site Mickey that halving the block rewards by 50% always has an impact on the Litecoin mining

ecosystem: 

“When the mining rewards get cut in half, some miners will not be profitable and they will shut off their machine. If a big percentage does that, then blocks will slow down for some time. For litecoin it’s three and a half days before the next change, so possibly like seven days of slower blocks, and then after that, the difficulty will readjust and everything will be fine.”

Despite the commonly accepted theory that a decrease in supply results in a corresponding increase in demand, Lee suggested that market sentiment also plays a role in

ramping up the price: 

“In terms of the price, the halvening should be priced in because everyone knows about it since the beginning. But the thing is people kind of expect the price to go up. So a lot of people are buying in because they expect the price to go up and that’s kind of a self-fulfilling prophecy. So, because they’re buying in, the price does actually go up.”

After Litecoin’s 2015 halving, the coin peaked in July of that year before losing nearly 50% of its value by the time of the reward reduction, culminating in a decrease of 75% in the aftermath, Mickey reports. Naeem Aslam, chief market analyst at ThinkMarketsFX, told Cointelegraph via email that reducing block rewards for miners is an effective filtering process and agreed that the effect on

the price is usually positive:

“Reducing the incentive for miners is good for LTC because only serious people will remain in the space. As for the price action, it is difficult and it depends a lot on the sentiment but usually this kind of action is positive for the price.”

If the price bombs following the halving, the network hash rate will tail off as mining begins to shut down, leaving only the largest mining farms operational. Once the hash rate drops below a certain point, the mining difficulty will adjust itself and smaller miners may be able to begin mining once again. 

Supply and demand: Experts weigh in

Although halving events are widely considered to result in a price hike for the given cryptocurrency, market experts do not foresee any dramatic changes in valuation. Mati Greenspan, a senior market analyst at eToro, told Cointelegraph that halving events are usually priced in before they

actually happen:

“It seems to be the case here as well. Litecoin has outperformed the rest of the market during this year's rally and some say that it was a root cause of the upward momentum in the first half of this year. It's difficult to say how or even if the price will react to the event in the short term. In the long term, reduced supply supports higher prices all else being equal.”

Renowned crypto trader and technical analyst Crypto Rand also agreed in email conversations with Cointelegraph that the halving event has already been priced in:

“I don't think the halving event will have much impact on Litecoin price, it's already priced in since one month I would say. LTC is looking pretty solid here. It just broke up the local downtrend channel after bouncing on the key $88 range support. If the downtrend of volume finally comes to an end I'm expecting a rise on the price back to $105-$110. Right now looks like a solid option among the rest of big caps.”

For Aslam, those trying to jump on the halving gravy train are already too late: 

“The most important factor to remember is that these kind of planned events are already fully priced in and traders have already positioned themselves for this. Running up to the event, it is not usually wise to participate in that move because you are already too late for the party. Therefore, smart money always buy the rumour and sell the news.”

Greenspan predicts that there won’t be many surprises in mining activity, due in part to Litecoin’s scrypt algorithm: 

“Litecoin's scrypt algorithm is pretty unique so the hardware used to mine it is not easily adaptable to mining other tokens. Therefore it doesn't have quite the same of competition over hashrate that some of the other cons have. My feeling is that LTC miners have had ample time to prepare for the halving so we shouldn't see any major changes.”

When asked about what investors holding LTC should be doing, Greenspan had advice: 

“Holding. But more importantly spending. Litecoin's value proposition specifically involves being a more durable token for making payments. The more people use it for this purpose, the stronger the network gets.”

Some members of the crypto community are commenting that the Litecoin halving can be viewed as a test run for the upcoming midyear 2020 BTC halving and that we can consequently expect similar results. For Greenspan, the comparison is sound, although he warned that results will

not be identical: 

“The market has matured a lot since the last Bitcoin and Litecoin halvings. Though we couldn't possibly expect a mirror reaction, the LTC halving should give us some indication of what to expect when BTC does the same next year.”

Crypto Rand is not so sure, however, stating that investor understanding and even awareness of Litecoin juxtaposed to Bitcoin is incomparable: 

“I don't think LTC halving can work as test for Bitcoin, I would say 95% of the traders/investors are not aware of the halving on LTC or they don't know what means. The coverage for BTC it's and will be a fully mainstream event, everyone will be aware of it.”

Strix Leviathan says halving profits are a myth

A blog post published on July 21 by institutional-grade algorithmic investment management platform Strix Leviathan reported that cryptocurrencies do not outperform the market in the months leading up to and following block reward reductions. The report found that the supply and demand theory, while “certainly feasible as a logical theory,” does not result in a rapid increase in price. Per the report, Strix Leviathan analysts found that LTC outperformed the market twice prior to a reduction in block rewards, yet fell to the bottom 25% of the market in the ensuing six-month period. The report also postulates that the performance of a crypto asset both in and out of halving periods are more or

less the same: 

“What we find is that the return distribution of an asset’s halving periods versus the return distribution outside of its halving periods reveals that they are statistically the same at a 99% confidence level. In other words, we did not find evidence that a halving event results in abnormal pricing action and we are dealing with a circumstantial illusion. It appears more likely that the return behavior before, during, and after a halving coincides more with increasing levels of speculation than with an underlying shift in sell side pressure.”

Merged mining could mitigate block reward reductions

A report published by Binance Research, an arm of major crypto exchange Binance, found that the impact of halvings for both BTC and LTC miners could be mitigated by merged mining. Binance researchers analyzed Charlie Lee’s prediction that many miners would have to halt operations and looked into how merged mining could help keep miners on-board even after rewards have been reduced. Merged mining uses the work done on a parent blockchain and spreads it across other smaller “child blockchains” by using auxiliary proof-of-work (AuxPoW). The three most prominent examples of merged mining are the Litecoin-merged Namecoin (NMC), Bitcoin-merged Dogecoin (DOGE) and Myriadcoin (XMY), a cryptocurrency merged with both BTC and LTC. 

The report theorized that merged mining could help mitigate the impact of reward reductions by future block rewards scheduled for both Litecoin and Bitcoin. Binance researchers also reported that smaller chains could incorporate AuxPoW in future to support greater network security and reduce the need for an independent mining operation. The report did, however, find some potential shortcomings. Researchers said that miners may not turn to merged mining due to the risk of operational costs when supporting child blockchains and potential declines in the market price.  The report cites Dogecoin as the most successful examples of merged mining, which adopted the model in August 2014. After the switch, the coin’s mining hash rate skyrocketed 1,500%. The report also found that, as of July 2019, 90% of Dogecoin’s total hash rate is sourced from Litecoin mining pools.

Article Produced By
Henry Linver

Henry Linver is a freelance journalist. He’s interested in how blockchain has the potential to radically change the world we live in and the transformative power of crypto.

https://cointelegraph.com/news/litecoin-halving-all-you-need-to-know

Thomas ClaimCo.in

Litecoin Outperforms Top-10 Cryptos Ahead of August Reward Halving

Litecoin Outperforms Top-10 Cryptos Ahead of August Reward Halving

                                

With the supply of new coins to be halved in less than five weeks,

litecoin is outpacing its peers. The fourth-largest cryptocurrency by market capitalization is currently trading at $123, representing 5 percent gains on a seven-day basis, according to data source CoinMarketCap. Meanwhile, bitcoin, the top cryptocurrency by market value, is currently reporting a meager 1 percent gain on a weekly basis. Other top-10 cryptocurrencies are trading mixed as seen in the table below.

  • Cardano, down 10 percent, is the worst performing top-10 cryptocurrency over the last seven days.
  • ETH, XRP, BCH, and EOS are flashing red.
  • Binance coin is up a staggering 481 percent on a year-to-date basis, followed by litecoin, up 305 percent.

Litecoin’s recent relatively shining performance could be associated with the mining reward halving due on Aug. 6 this year. The process is aimed at curbing inflation by reducing the coins paid out for mining on litecoin’s blockchain by half. So, after Aug. 6, miners will get 12.5 coins for every block mined – down 50 percent from the current reward of 25 coins. Essentially, miners will be adding fewer coins to the ecosystem, likely leading to less in circulation. The impending supply cut might have helped LTC outperform its peers in the last seven days. While it is logical to expect the cryptocurrency to rise further in the run-up to the event, the upside looks limited. After all, LTC has already witnessed phenomenal growth in both price and non-price metrics so far this year, and is currently up more than 300 percent on a year-to-date basis.

Meanwhile, litecoin’s hash rate, or computing power dedicated to mining, rose to a record high of 468.1019 TH/s this week. Notably, the metric is currently up 220 percent from the low of 146.2118 TH/s seen in December. All-in-all, the market may have largely priced in the reward halving already. In fact, if history is a guide, the probability of LTC witnessing a sharp pullback in the run-up to the Aug. 6 event is high. It is worth noting that LTC had nosedived from $8.72 to $2.55 in 6.5-weeks leading up to the previous reward halving, which took place on Aug. 25, 2015. Technical charts are also signaling scope for a near-term price drop.

While the bullish higher lows, higher highs pattern is intact, the relative strength index (RSI) is reporting a bearish divergence and the 5- and 10-candle moving averages have produced a bearish crossover. As a result, the price risks falling to the 200-candle MA, currently at $221. A violation there would expose the 50-candle MA, currently at $83.00. On the higher side, a high-volume break above $140 is needed to expose the next major resistance lined up at $182 (May 2018 high).

Article Produced By
Michael Williamson

https://www.icogeeker.com/litecoin-outperforms-top-10-cryptos-ahead-of-august-reward-halving/

Thomas ClaimCo.in

Best Places To Buy Litecoin in 2019

Best Places To Buy Litecoin in 2019

                               

Litecoin is a cryptocurrency in focus.

The fifth-ranked cryptocurrency has been on a bullish run since the start of 2019. By the time of writing this article, Litecoin was trading at $135.60 with a market capitalization of $8,458,349,031. The rising value of Litecoin can be tied to the upcoming August halving. In most cases, digital assets usually perform better towards the halving event. In the forthcoming halving event, Litecoin’s miner rewards will decrease by half from 25LTC to 12.5LTC. Litecoin’s halving usually occurs every four years after 840,000 LTC blocks. This means that we have pressure on the price due to the impending Litecoin supply drop. Technically, Litecoin has similarities with Bitcoin. However, Litecoin is quicker and cheaper. Developers designed Litecoin as a ???r-t?-???r ?r??t??urr?n?? ?nd open ??ur?? software project. Since Litecoin is a perfect cryptocurrency for investment, there are places where you can purchase the asset.

Binance

Binance is among the leading and fast-growing cryptocurrency exchanges around. The exchange offers support for several cryptocurrencies, including Litecoin. Other popular assets on the platform include Bitcoin and Ethereum. To buy Litecoin on Binance, you need to create an account with the platform first. The registration is straightforward, and you need your email, username, and a strong password. You can create the account through the website or the mobile application available on Android and iOS devices.

With an activated account, you need to deposit funds so that you can buy Litecoin. Binance allows users to deposit funds using Mastercard and Visa credit/debit cards. You will then be required to enter the purchase amount of Litecoin. You can pay using the US dollar or Euro. Note that cryptocurrency purchases by credit card are limited to BTC, ETH, and LTC. This process takes between 10-30 minutes. For more on this process, read our guide here. You can also deposit by sending funds from a separate cryptocurrency wallet into your Binance account. You will then place a trade which you can exchange with Litecoin. Binance offers a 50% discount for day traders if they use BNB coins. Binance Coin is the native asset of the exchange that powers activities. You will enjoy a unique fee structure like the 0.1% standard trading charge. This fee can be reduced further if you pay your trading charges in BNB.

Coinbase

Coinbase is the most popular cryptocurrency exchange with a good user base. This American based exchange supports the buying of Bitcoin, Ethereum, and Litecoin. Just like Binance, Coinbae allows users to purchase Litecoin using Visa/MasterCard credit and debit cards. Buying Litecoin on Coinbase is a straightforward process provided that the exchange is available in your country. At the moment, Coinbase is available in about 30 countries.

To get started, you need to create an account with Coinbase. You will verify your account through ID authentication and navigate to the payment methods page. Add your payment method and select the debit/credit card. You will then log into your card’s account and note the amount of those transactions. Lastly, enter the amounts transacted into Coinbase. From here, you will see a window “Credit/Debit Card Added” and a Buy Digital Currency button. You can buy Litecoin, using the Buy/Sell page through your card. To purchase Litecoin, go to the Buy/Sell tab and enter the amount. You will then select a card from the payment method’s drop-down menu. Lastly, confirm the order is correct and click Complete Buy. You will then have your Litecoin in your Coinbase wallet.

Kraken

Kraken is among the oldest cryptocurrency exchanges from the United States. The platform’s services are also available in Europe. The exchange supports Litecoin, Bitcoin, Ethereum, Monero, among others. To buy Litecoin on the exchange, you can first deposit funds through the five supported five fiat currencies i.e., USD, GBP, JPY, EUR, and CAD. You can deposit the funds through SEPA or wire transfer at a fee. However, Canada domestic wire transfers are free. You can check all deposit fees here. The exchange is working towards enabling deposit through credit and debit card. It is essential to bear in mind that all deposits are based on your account level. In most cases, the Kraken account verification process usually takes some time. Additionally, wire transfers can take between 1 to 2 days. Although CAD wire processing is typically 1-2 business days, the exchange gives an allowance of up to 5 business days for funds to settle. This is due to traditional processing speed outside of Kraken’s control. Kraken has the two-factor authentication feature; email supports a master key for recovery.

KuCoin

KuCoin is another leading cryptocurrency exchange with a wide range of supported assets. The platform supports Bitcoin, Ethereum, Litecoin, among other assets. Popular stable coins on the platform are USDT, USDC, TUSD, PAX, and DAI. The exchange has also issued its own token called KuCoin Shares (KCS). To buy Litecoin, you need to create an account and undergo all the verification processes. Recently, KuCoin partnered with Simplex to re-enable users to purchase cryptocurrencies using Visa and MasterCard credit cards. You can purchase Litecoin, Bitcoin, Ethereum, and XRP with both USD and EUR. You can buy Litecoin through trading other assets. The most suitable cryptocurrencies to deposit are Bitcoin and Ethereum. They both have trading pairs with the vast majority of cryptocurrencies, including Litecoin. To make your deposit, go to the navigation bar at the top of the website and click Assets then Deposit and select Bitcoin or Ethereum. KuCoin will provide you with a deposit address for the cryptocurrency you selected. Copy the address and send the amount from your preferred wallet. Once the deposit has been confirmed, the amount will display in your deposit section.

In the next stage, you will need to place a Litecoin order. For example, if you deposited Bitcoin, you will select the BTC market and search for LTC. The LTC/BTC trading pair should appear. After clicking on the trading pair, a price chart will appear. You can place your buy order on the right side of the chart. Note that to proceed with your order, you’ll have to insert your six-digit trading PIN password. If you want to buy LTC when it reaches a specific price, use the Limit order. If you’re going to buy LTC at its current rate, click on the Market tab and enter the amount of LTC you wish to purchase. The order should be executed instantly. Note that if you’re planning to trade different cryptocurrencies, purchase some KuCoin Shares first. With the shares, you will get some benefits like a 30% trading fee discount in addition to an award incentive bonus.

Conclusion

Litecoin is a cryptocurrency worth investing in. The bullish run means that the asset is attracting more investors. There are various ways of buying Litecoin. However, the highlighted exchanges are ideal for buying Litecoin. The exchanges come with a sense of reliability and security as they have a good reputation in the market. However, it is essential to note that storing Litecoin in an exchange wallet can be very risky. These wallets are susceptible to hacking. It is advisable to store your assets in a cold wallet.

Article Produced By
Amisi Paul

https://zerocrypted.com/best-places-to-buy-litecoin-in-2019/

Thomas ClaimCo.in

Litecoin LTC Price Analysis and Prediction 2019 Hanging Around Doing Nothing Waiting For Bitcoin Move

Litecoin (LTC) Price Analysis and Prediction 2019 – Hanging Around, Doing Nothing, Waiting For Bitcoin Move

                                

4H LTCBTC

LTC is resting Fib618 level at 0.0114BTC, right below an intersection of EMA20 and MA50 after it got rejected at Fib50 (December lows – April high) at 0.0129 BTC. LTC is right at the breakdown level – Fib618 at 0.0114 BTC and if LTC fails to defend it, it would probably dip to the Fib786 at 945k sats. Breakout level is in the zone of two Fibonacci382 levels (April high – May low) at around 0.0140-0.0143 BTC. Smashing this level would see LTC reach 0.0159 BTC or even higher (0.017 BTC). Moving averages are aligned in descending order so a leg down is more likely than a leg up.

Daily LTCBTC

LTC needs to break 0.0123 BTC zone to enter an intermediate bull market on the daily chart. This level is a converging point for EMA20 and descending trendline that started back from April highs. MA200 is right below the price action and should serve as a support should LTC keep this correction phase.

LTCUSD

Due to the BTC’s slump, LTC lost some of its USD value. It is still, however, hanging around the support at $84-89 on EMA20 and Fib236 level. Failing to sustain this level could see us stoop to $78 or even a local bottom of $65 (in case bitcoin drops heavily and drags the whole market with itself). A surge up would mean a re-test of the $107 resistance. One bullish scenario that could play out for LTC in the upcoming days is the formation of a bullish pennant pattern. Considering that there is less than 100 days until the LTC halving, this could be the ideal time to long litecoin.

One thing to bear in mind is the turbulent and erratic nature of bitcoin – a sudden thrust up or slide down is always on the cards which would invalidate this and all other analysis and predictions. In such cases, market is shaken up with most traders exiting altcoins and entering bitcoin positions or seeking shelter in stablecoins, especially in the initial phases of bitcoin pumps and dumps. So it is always a good idea to keep a close eye on bitcoin’s behaviour before opening a long or a short on any other coin in the market. Should this happen, stop by again to check out our updated charts and thoughts. Trading volume is big but questionable – reported volume in the last 24hrs is $3.1 b and “Real 10” (trading volume on the exchanges that provably prevent wash trading) volume is of course much lower – $85 million. This means that LTC’s liquidity is highly inflated and overstated by whopping 37x.

Moreover, LTC comparatively has a solid buy support, according to coinmarketbook.cc. Buy support is measuring sum of buy orders at 10% distance from the highest bid price. This way we can eliminate fake buy walls and whale manipulation and see the real interest of the market in a certain coin. LTC currently has a sound $19m of buy orders measured with this method, which sets LTC buy support/market cap ratio at 0.43%, a slightly above average value. Bitcoin and Ethereum have a 0.27% and 0.28% ratios, respectively. This novel metric indicates there are a lot of manipulations, inflated liquidity and fake orders on all crypto trading pairs, including LTC pairs.

Social Metrics

Litecoin’s sentiment score, measured by the market analytics firm Predicoin, paints a neutral picture. Predicoin wraps its analysis up into a single simple indicator known as the SentScore, which is formed from

the combination of five different verticals:

  1. News
  2. Social Media
  3. Buzz
  4. Technical Analysis
  5. Fundamentals

Interpreting the SentScore’s scale:

  • 0 to 2.5: very negative
  • 2.5 to 4.0: somewhat negative zone
  • 4.0 to 6.0: neutral zone
  • 6.0 to 7.5: somewhat positive zone
  • 7.5 to 10: very positive

Litecoin currently has a Sentscore of 4.9, a significant drop from the 6.5 it had back on April 10th. Overall, Predicoin’s Sentscore is an excellent indicator of community interest and can provide useful insight into which coins are trending right now. Litecoin is obviously not one of them.

Mid May Update: Fundamentals

To assess fundamental health of a project, we used the FCAS metric. FCAS is a comparative metric whose score is derived from the interactivity between primary project lifecycle fundamentals: User Activity, Developer Behavior, and Market Maturity.

There are a few sub components which provide data to each fundamental:

User Activity is comprised of Project Utilization and Network Activity
Developer Behavior is comprised of Code Changes, Code Improvement and Community Involvement
Market Maturity is comprised of Liquidity and Market Risk. Market Maturity has less than 5% impact on a project’s overall FCAS.

FCAS ratings are on a 0-1000 point scale with a corresponding letter grade. Break points are based on standard deviations in the underlying component distributions. 900 – 1000 is marked as S for superb. 750 – 899 is marked as A for attractive. 650 – 749 is marked as B for basic. 500 – 649 is marked as C for caution. And finally, below 500 is marked as fragile.

Litecoin has been ranked as the B category – basic with overall 746 points as of May 7th. By far the strongest metric that contributed to this great score is user activity that got 901 points, followed by market maturity with 769 and user activity that had only 624 points. This is a data backed claim that litecoin is not that great off fundamentally, especially its development side.

Below are some of the most important news around the project in the last 30 days.

  • One particular happening heats the hopes of LTC holders as a potential instigator of a larger scale bull run. That is halvening or halving, bound to happen in August. Litecoin’s second block reward halving will take place in less than 4 months, with the reward for each block reduced from 25 LTC to 12.5 LTC.
    Historically speaking, halvings have been a big deal, for both bitcoin and litecoin. The halving day does not immediately impact the price of Litecoin. Instead, the effects are felt sometimes months ahead, followed by a surge in price in the following months.
  • TD Ameritrade is a popular broker for trading traditional financial assets and has already made its entry into the cryptocurrency industry. The electronic trading platform is among the backers of an upcoming cryptocurrency exchange called ErisX. ErisX is an exchange that is targeting institutional investors. The platform will offer investors the ability to trade the cryptocurrencies Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH) on spot and futures markets.

Below is our long-term forecast where we cover general market movements and sentiment shifts before delving deeper into the specific predictions for LTC. Litecoin was created back on 7th Oct 2011 by Charlie Lee, an ex-Google employee, who quit working in order to focus on Litecoin full time. Charlie is very active on Twitter. You can read his blog here. Litecoin was designed to complement Bitcoin by solving issues like transaction timings and concentrated mining pools.

Will Litecoin Survive Beyond 2019

Litecoin [LTC] is one of the coins that suffered biggest hit by the bear market. The overall market cap has dropped below $2.5 billion and seems the shedding is not over yet. It is a well known fact that Charlie Lee sold at the peak of LTC price and tweeted a very good advice to the rest of the holders: On December 12th, 2017, Charlie Lee sent out a tweet telling people not to get too excited with the unsustainable bull run. Charlie warned about the pending multi-year bear market and that anyone who could not handle Litecoin (LTC) dropping to $20 should not buy it. While many attacked him as a FUD instigator, his reasons for making these assertions were rock solid and since LTC is now hovering just aboe $30. Charlie explained that every time the crypto market rises up too fast, it overshoots its real value, which leads to a huge correction, and a price consolidation. Charlie’s predictions have come true.

Charlie is not active in LTC for quite some time – it has been years since he contributed to the development of the once second largest cryptocurrency, that is now ranked at number 7 on CMC rankings. Being dubbed the silver to Bitcoin’s gold, Litecoin was introduced in 2011 as a quick fix that was supposed to solve some problems typical of Bitcoin. With new projects flooding the market in the recent years, Litecoin’s role seems to be thing of a past – LTC is the odd man out and nobody can bring about a solid argumentation for Litecoin’s purpose in the future. And the reason I think Litecoin is dead is not because of its price – it dropped together with the whole market and not by its own fault. The reason is lack of unique value proposition – it is just blunt copy of bitcoin with couple of parameters changed. It was that back in 2011 and it is that still in 2018. This lack of vision and will for separation from bitcoin and creation of your own niche will cost Litecoin its existence.

Litecoin can do everything Bitcoin can and it is often called a testnet for bitcoin. But who needs a multi-billion testnet – who needs two identical projects as one is enough and this is a winner takes all battle. Litecoin depends on Bitcoin. This is not just a hypothesis, this was Charlie’s vision from the project’s inception.

LTC enjoyed the treatment as a bitcoin’s little brother – technology was similar so exchanges and wallets could easily integrate it where ever they integrated bitcoin. This gave it exposure and liquidity which drove its price up especially as many would use it for faster transactions between exchanges or wallets as it had faster transaction time than bitcoin. In the meantime, there are many other coins that can be used for this purpose that are even faster and cheaper, almost free (Nano for example).

With Coinbase and other exchanges adding new projects, the top 10 market caps being dominated by some very diverse and colorful coins and a general lack of media attention and focus on Litecoin unless it makes some significant price movement, I’m not sure what would motivate new comers do the research necessary to learn about Litecoin’s potential. So if Litecoin’s utility as a micro-payment solution is now in question, where does it stand? I suppose it could be the “silver” to Bitcoin’s “gold”, but if Bitcoins are (basically) infinitely divisible and act as a good store of value, then what does Litecoin do?

As Bitcoin network keeps being optimized and upgraded with new innovations like Lightning Network, use cases of Litecoin will disappear and so will its reason to exist. Litecoin doesn’t have the name recognition that Bitcoin has. It does have a fantastic advantage to make improvements to itself much faster than Bitcoin does, but with the rise of so many other projects that have base codes that are already more fit for micro-transactions and scaling, has Litecoin missed the train? I would say yes.

LTC will continue to drop as investors move towards projects that are more realistic in their goals. If anyone replaces fiat, it is going to be bitcoin and not litecoin. Litecoin’s boon and curse has been its mirroring of bitcoin – they enjoyed the ride in the past but with every market contraction, we will lose projects that have no reason to exist, like Litecoin.

Our Litecoin 2019 Price Prediction

LTC, as the rest of the market, is tightly coupled and dependent on bitcoin’s price action. If bitcoin embarks on another bull run, LTC can hope for one as well. Since that is very unlikely, don’t expect much to change for LTC price-wise in this year. So 2019 will be a year of boring sideways action with minor bitcoin ignited jumps and slumps.

In general:

The main currency in cryptocurrency markets is Bitcoin and given this, altcoins tend to fuel Bitcoin runs and Bitcoin tends to do the same in return. Given this relationship, Bitcoin price movements (or lack thereof) tend to effect altcoin prices.

When Bitcoin goes up swiftly, it will likely:

  1. Suppress or depress altcoins as money flows into Bitcoin;
  2. Or, take altcoins along for the ride

In cases when Bitcoin plunges, it will likely:

  1. Depress altcoins as money flows into fiat;
  2. Or, cause altcoins  to boom as money flows into them, but this is rarely the case.

When Bitcoin moves sideways, it will likely:

  1. Cause altcoins to mimic that as traders wait for a clear sign on the direction of the market;
  2. Or, cause altcoins to flourish as traders look for returns in altcoins and try to get favorable trades in terms of BTC pairs.

To summarize, Bitcoin is the focal point of the crypto market in many ways, and with BTC trading pairs on every exchange, the gravity of Bitcoin is hard to evade. The majority of projects will fail — some startups are created just to gather funds and disappear, some would not handle the competition, but most are just ideas that look good on paper, but in reality, are useless for the market. 

Vitalik Buterin, co-founder of Ethereum said:

“There are some good ideas, there are a lot of very bad ideas, and there are a lot of very, very bad ideas, and quite a few scams as well”

As a result, over 95% of successful ICOs and cryptocurrency projects will fail and their investors will lose money. The other 5% of projects will become the new Apple, Google or Alibaba in the cryptoindustry. Will LTC be among those 5%? Hard to tell but probability for that is higher than with most other coins primarily for 2 reasons: solid use case and legit team behind the project. All of this summed up means one thing: LTC might live through couple of orchestrated and, for a regular trader, completely unpredictable pumps but the majority of time will be murky sideways trading with small volume and no significant interest from the market. 

Price will heavily depend on what BTC will do and since many analysts think BTC will not be making big moves in this year, it is hard to expect LTC will do them either. The price will probably stagnate and record slow-moving depreciation or appreciation depending on the team activity, potential technological breakthrough or high-level partnership.

Market prediction for Litecoin price

Litecoin is an original gangster coin, bitcoin’s copy from the old days, one of the strongest brands in crypto space. Let’s check what are the market experts or crypto editorials saying.

  • Trading Beasts
    A crypto forecast website called trading beasts predicted that by the end of 2019, LTC might reach around $80, and only a bit higher in 2020 – predicted to rise up to $95.
  • Crypto Ground
    Here comes a more optimistic prediction of cryptoground, where they say that by 2019 end, LTC might reach $90, and in five years litecoin might reach $324.
  • CoinFan
    CoinFan is a website that offers price forecasts for every relevant cryptocurrency. Their algorithm is awfully bullish as they predict that Litcoin might reach $472 by 2019 end, and might reach $1687 by 2020 end.
  • Wallet Investor
    Wallet Investor is known for their pragmatic cryptocurrency prediction. They believe that LTC might drop to single digits – $3.17 by December 2019, where the year high price might be around $45.

Article Produced By
Torsten Hartmann

Torsten Hartmann has been an editor in the CaptainAltcoin team since August 2017. He holds a degree in politics and economics. He gained professional experience as a PR for a local political party before moving to journalism. Since 2017, he has pivoted his career towards blockchain technology, with principal interest in applications of blockchain technology in politics, business and society.

https://captainaltcoin.com/litecoin-ltc-price-prediction-update-05-20-2019/

 

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