All markets are down. A major correction is taking place, as it always does in the history of cryptocurrencies. Litecoin (LTC) is seen as digital silver, in the same way, Bitcoin is seen as digital gold (" silver to bitcoin's gold"). The reason is Litecoin is 4 times less scarce than Bitcoin (total supply). We can therefore wonder what the future of Bitcoin's little brother will be in these times.
What is Litecoin?
Litecoin is an altcoin founded in 2011 by Charlie Lee, who at the time was a developer for Google. Litecoin's source code is a hardfork of Bitcoin's source code, so it shares a lot of similarities with the leading cryptocurrency, but there are a few changes that Lee implimented to set Litecoin apart. It still utilizes the Proof-of-Work protocol like Bitcoin but they use a different algorithm which allows LTC to create blocks using less energy First Litecoin has a total supply of 84 million coins, which is about 4 times as many as Bitcoin. The amount of time it takes to create each block was shortened down to 2.5 minutes as opposed to Bitcoins 10 minute block time, so what that means is LTC can process more transactions faster.
So is Litecoin a good investment right now? While it holds promise for improving upon the original Bitcoin protocols, it's fair to say that Litecoin is still far behind its predecessor in terms of transaction volume, market capitalization and unit price. However, there are still many reasons to invest in Litecoin, including its potential as a legitimate payment method for retail transactions.
Let's recall the pros of Litecoin:
- Faster transactions than Bitcoin. Litecoin lowered their block generation time to 2.5 minutes as opposed to Bitcoins 10 minute block time.
- It is scaleable, Litecoin can handle large volumes of transactions with low transaction fees.
- Everyone can mine, unlike Bitcoin, where powerful and specialized equipment is required. Using Scrypt algorithm, Litecoin can produce four times what the Bitcoins can supply in a year.
- The Scrypt algorithm is much safer and energy efficient than other crypto hashing algorithms.
- Litecoin is represented by Charlie Lee, who can decide what direction it should go in, unlike Bitcoin, whose creator's identity is unknown.
- They created an open-source blockchain explorer 'insight.litecore.io' was released, which can be used to develop online repositories and other apps.
- A Crypto currency often compared to silver, just as Bitcoin can be compared to gold.
Price Prediction of Litecoin
Litecoin is positioned to take off in the next few years as crypto becomes more mainstream and companies look to adopt blockchain technology. LTC is trading at $104.85 at the time of writing, which could be considered quite the discount. In December of 2017 it reached an all time high of $420.00 and in May of 2021 it was trading around $378.02. The future of Litecoin seems to be on the uptrend with less volitaty then it has experienced in the past. Considering the scaleability of Litecoin and it's ability to process large amounts of transactions with low fees, the price can rise up around $800 by 2028! While that could happen, the experts have been a bit more modest about where LTC might be. According to Coin Price Forecast:
"Litecoin price started at $124.09 in the previous year. The forecasted Litecoin price at the end of 2025 is $362 – and the year to year change +142%. In the first half of 2022, the Litecoin price will climb to $176; the price would close the year at $209, which is +34% to the current price. The Litecoin will start at $287 in the first half of 2023 and later it will soar to $379 at the end of second half." -Coin Price Forecast
Conclusion
Is it still worth buying Litecoin? Yes, as this chart shows above, there is nothing new under the sun. People are prone to be guided by their own emotions and fears however as Warren Buffet says: buy when there's blood in the streets. This is where life-changing gains are made.
Besides, all the essential indicators are in place: the emergence of institutions and corporations that are paving the way, ease of use and security for mass adoption, and the solution to real problems such as hyperinflation and an alternative to global banking problems. Litecoin is in position to thrive!
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** This is my opinion based on my research, it is not financial advice. Investing is a risky and the market can flip overnight. Do your own research before investing in crypto markets**
