When it comes to predicting the prices of assets in the digital
currency world, you are bound to see a lot of analysts and commentators
throwing around huge numbers. With the current price of Litecoin, it is easy to
convince anyone trying to invest in the cryptocurrency right now that by the
end of 2018 alone, the currency will be more than a thousand dollars.
Fortunately though, most of the long term predictions made on
cryptocurrencies over the years have come to pass. With that being said, is
there a chance that Litecoin will make a huge wave by the end of the year 2020?
Like how much will the currency be able to attain if all goes well.
Well, according to market analysts, this cryptocurrency has been
speculated to reach the $3000 height in the nearest future. Currently trading
at $238, three thousand dollars by the end of the year 2020 isn't a bad
prediction. But what are the factors that were considered before reaching this
amount? Let's take a look at the factors that will determine how well (or bad)
Litecoin will do on the market come 2020.
APPRECIATION RATE IS HIGHER THAN BITCOIN'S
Most cryptocoins are usually compared with the grandmaster of
cryptocurrency, Bitcoin, in order to know how good or bad they are performing.
The rate at which Litecoin is outperforming BTC is what will determine how fast
it will rise to the speculated price of $3,000 in 2020.
With Bitcoin currently treading on the $15,000 path and Litecoin
coming up slowly on the over $230 route, the price difference might look like
peanuts in comparison. But the thing is, in 2017, while Bitcoin appreciated
nicely by 1,300%, Litecoin also grew exponentially by a marvelous 2,400%. Also
in 2017, December to be precise, when all cryptocoins were going through the
down trend, Litecoin was able to rise back up more bullishly and faster than
BTC.
IT IS A LOT CHEAPER AND FASTER THAT BTC
Actually created as a lite version of BTC, Litecoin was designed
to be easily spendable and usable for small transactions, like the buying of
coffee and shopping for instance. But thanks to its nice launching program and
ever-growing community, the cryptocurrency was able to create a huge wave on
the market.
Now, when you are looking to buy any digital asset like Litecoin,
one of the things you need to consider is the growth rate of the asset. A
currency with a very rapid growth might seem like it’s not sustainable.
However, market analysts have come to the conclusion that the rapid growth
experienced with Litecoin in late 2017 is quite sustainable and it might
continue to grow like that.
Simply put, Litecoin is quite cheap and it has piqued the interest
of investors. The processing of transactions on the Litecoin network is like
eight times faster than Bitcoin transactions. Additionally, the transaction
fees on the Litecoin network is currently 0.001 LTC per transaction, unlike
Bitcoin fees, which has grown exponentially since the down trend it suffered in
December, 2017. Bitcoin's transaction fee is currently between 10-15 dollars;
in December 2017, users of the Bitcoin network were charged up to $50 dollars
on a single transaction.
PROVIDES MORE ADVANTAGE FOR INVESTORS
If you are not a large cryptocurrency investor, it is safe to
advise that you steer clear of BTC. This is because the transaction period for
Bitcoin has gotten longer, which may lead to you losing the little you have
invested in the cryptocoin. The 1-hour+ option for transactions to be complete
on the Bitcoin blockchain can actually take up to an hour or more. This can
lead to your transaction not being complete, which will make you lose all of
your money; or volatile pull-backs may occur on the market, which will make you
lose a large percentage of your money.
Fortunately for Litecoin, it is not burdened with the amount of
load that's affecting Bitcoin's blockchain, which simply means that the
Litecoin blockchain is a lot safer for traders. So as time goes on, it is
highly likely that traders will take to Litecoin, which will provide the
cryptocurrency with higher volumes, thereby helping it reach the speculated
$3,000 mark.
HALVING CONDITIONS
It is now a known fact that a lot of digital assets undergo the
halving process every three to four years. And most halves usually see
exponential growth within a short period of time. This is another huge factor
that's contributing to the Litecoin prediction. Given the fact that Litecoin is
going to undergo its halving process in nineteen months’ time, the asset will
be in demand as investors and traders will rush to purchase it before its fork.
SUMMARY
Considering all of the factors above, Litecoin might get
to the speculated $3000 mark if all goes well. But then, everything depends on
usability and popularity. We still need to consider the fact that a lot of
other cryptocurrencies are coming up and those ones are getting the attention
of investors. Nevertheless, with the upcoming fork being discussed, things
might bode well for LTC.
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