Many people wonder whether Litecoin is profitable and the investment prospects that the future of the digital currency holds. Litecoin, like every other popular crypto, has witnessed several ups and downs in the global crypto market since its launch in 2011. The open-source software has weathered several storms and still remains relevant to date, even after about nine years of existence. Invariably, Litecoin has a more extended history and presence than most other crypto projects in the market today.
To understand why Litecoin will succeed, there is a need to delve into the fundamental reason for its development or creation. Charlie Lee, an ex-Google engineer who created Litecoin back in 2011, aimed at using Litecoin to improve on Bitcoin’s shortcomings. This has made Litecoin enjoy support in the crypto industry over the years, with high trade volume and liquidity.
Litecoin is a fully decentralized open-source payment network growing in popularity and relevance that can be bought on exchanges or traded trough brokerages such as XTRgate crypto trading platform. Since its release via an open-source client on GitHub in October 2011, Litecoin has been trading since then and has stabled its existence as one of the top 10 coins in the industry. This has endeared many investors to the network.
Like other coins in the market, Litecoin functions as an online payment network that enables people to send and receive payments using LTC as a means of transaction.
KEY ELEMENTS OF LITECOIN
When Litecoin emerged in 2011, the cryptocurrency brought significant innovations such as the use of a Scrypt mining algorithm, a reduction in the block times for transactions (an average of 2.5 minutes per transaction), and an increased total Litecoin supply (maximum supply of 84 million LTC).
Litecoin has enjoyed relevance till date due to the following key elements, among others:
- Litecoin has a long and durable history compared to most other cryptos in the market.
- Litecoin maintains a healthy and consistent price. It has a fast and cheap transaction rate making it affordable for crypto payments.
- The future of Litecoin looks promising, with new features and development ongoing.
- Litecoin has a high demand for exchanges, with a massive user base.
- Litecoin has a high trading volume making it a popular choice for cryptocurrency investors.
ONGOING DEVELOPMENT AND IMPROVEMENTS
Despite having sold all his Litecoin stakes in December 2017, Charlie Lee has made it known that the development process of Litecoin is ongoing and will continue, as the coin is serving an essential purpose. Litecoin was developed to help as a digital silver to Bitcoin, which was seen as the digital gold.
Lee, alongside the Litecoin Foundation, is working on making the crypto an acceptable payment mechanism and also implementing a privacy feature, lightning network integration, wallet improvements, and a host of other developments.
Litecoin has the potential to surpass the purpose for which it was created. Currently occupying the seventh-largest market cap of any cryptocurrency, Litecoin is already on the path of success. When Charlie Lee started the Litecoin project, the aim was to complement and solve the problems faced by Bitcoin. Hence, he used the same blockchain protocol of Bitcoin and modified it to suit the Litecoin blockchain idea.
As a digital payment network, Litecoin has seen the highs and lows of price changes in the market. Much to its advantage, Litecoin seems to rely on the development of Bitcoin. As long as there is Bitcoin in the crypto market, there is and will always be a chance for the advancement of Litecoin development, making the crypto a viable option for long term investment.
LITECOIN PRICE ANALYSIS
Since its inception in 2011, and subsequent acceptance in the crypto industry, Litecoin has remained a force to reckon with in the digital assets market. A lot of crypto projects have since been developed, with many of them nowhere to be found, while the existing ones have been unable to relegate or make redundant the Litecoin blockchain technology.
Litecoin, in the past eight years, has been active and successful in most of these years. Litecoin reached its highest price of $358 in 2017 with a market cap of 19 billion US dollars. The crypto market is volatile and dynamic; hence, in 2018, Litecoin, like other cryptocurrencies, experienced a sharp price decline. Yet Litecoin managed to maintain its top 10 status, remaining in the 7th position behind Bitcoin SV, among the most capitalized cryptos. Litecoin now has a capitalization of $3.06 billion in June 2020.
Although the coin’s price was affected in 2018 with the decrease in market price and capitalization, yet the crypto managed to make a comeback, thus, making it a perfect investment asset with long and short term profitability potentials.
Rising from its fall in 2018, Litecoin experienced a bullish price in the first half of 2019, with about four times the price increase. Prior to the Litecoin halving in August, the price of Litecoin soared from an average 31 US Dollar to a little above USD138. After the halving, the price diminished by 50 percent until the first quarter of 2020, when the price reached an average of $81.72. The price has, however, halved since then, with Litecoin maintain its price around $47.14 in June 2020.
LITECOIN PRICE PREDICTIONS
Despite its price challenges, Litecoin still provides investment capability. Price and crypto analysts predict a long term investment potential and believe that the coin might grow to retake its top position. Although the crypto mining market is unpredictable and volatile, the future of Litecoin price is predicted to hit about $150 or more in the next five years. As Litecoin is the digital silver to Bitcoin digital gold, the price of Litecoin (LTC) rests on the BTC performance in the market.
Litecoin is on a trend of surpassing its record. The coin will remain relevant and popular among investors and the cryptocurrency community. The coin has an excellent potential for growth, and invariably, a good investment prospect.