Each cryptocurrency has its own positive traits and unique features that contribute to its development and steady growth. Litecoin is no exception. The ecosystem of this project is growing slowly and steadily.
Many people want to know how much LTC will cost at the end of 2021. What’s important to note is that the world of crypto finance is quite unpredictable, so making any forecasts is difficult. Traders should bear in mind that even the most correct, deliberate, and logical opinion can turn out to be wrong. Therefore, when choosing the most promising digital currency for investment, you need to consider the possible risk and have a plan B that will help minimize your losses.
In this article, we will analyze a fairly popular cryptocurrency Litecoin. Let’s find out how the halving of the summer of 2019 affected it. We will also discuss its prospects and possible development scenarios.
A brief history of Litecoin halvings
The second halving on the Litecoin network took place a year and a half ago. This means that on August 5, 2019, miners began to receive half the amount of remuneration for their work. A few months before this event, the LTC rate significantly increased, but it moved down again after the halving.
The first halving took place back in 2015. Then miners began to receive 25 LTC for each new block, instead of 50, as it had been before. The cryptocurrency reached its peak price value two months before the halving. And then the price went down sharply. A similar situation repeated in 2019. Litecoin hit $143.73 on June 22, the highest since January 2019. Then the rate of the cryptocurrency began to decline, going down $10 per day and reaching $103 on the day of the halving. The rise was short, with Litecoin dropping to $75 by 23 August.
According to the schedule, the next similar event should occur in two and a half years, on August 3, 2023. Then the reward for one block will be 6.25 LTC.
Information support as a development factor
One of the key factors that have a direct impact on the development of the project is its popularization. As Charlie Lee personally admitted, representatives of the Litecoin Foundation did not pay enough attention to the marketing campaign before. However, everything changed in 2018 when the fund started to popularize its product. The hashtag #PayWithLitecoin has become both a tool and a symbol of the campaign. When using LTC in calculations, clients from all over the world try to record and broadcast information about this by making photo and video confirmation.
A detailed tutorial was posted on the official website of the project that helped entrepreneurs implement LTC in their business processes. Low fees and high transaction speed made “crypto silver” an ideal applicant for this role.
Litecoin is a fairly liquid coin, so it can be exchanged in a matter of seconds using a convenient LTC to ETH converter on Godex.
Forecast for Litecoin
Litecoin looks good as a means of payment in the long term. If the developers continue to actively work on the optimization and technical component of the project, then it can face a bright future.
In order to achieve success, LTC does not even need to compete with its “big brother”. The fact is that in 2021 we can safely say that BTC is regarded as a means of accumulating and hedging risks. Bitcoin is compared to gold for a reason, as it is an ideal asset to invest in to avoid inflation.
The forecast for Litecoin looks quite optimistic in this direction. The coin lives up to its name, as it is both “lighter” and faster than BTC. Of course, its network is not as powerful as that of the first cryptocurrency, but it is developed enough to ensure the operation of the resources that are connected to Litecoin.
In the same vein, the founder of the network, Charlie Lee, speaks about the forecast for his brainchild. In an interview, he agrees that Bitcoin will remain the gold standard in the world of cryptocurrencies. Due to the higher level of security of the blockchain, it will always cost more and be more suitable for long-term savings. At the same time, Charlie Lee believes that LTC is better for paying for services and goods, and its transactions will always be cheaper for consumers.
In view of the foregoing, we can say that the LTC cryptocurrency is quite promising. It solves a fairly large-scale problem — the use of cryptocurrencies as a means of payment by a wide audience. If the team manages to achieve this goal, the LTC rate will respond accordingly.
This cryptocurrency can be considered a long-term investment. But the point is that buying cryptocurrencies entails many risks. Experienced market participants advise against focusing on just one asset. The most balanced decision is diversification, that is, buying several promising cryptocurrencies at once. Thus, you significantly increase your chances of success and minimize risks.