Create your own crypto trading bot
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02 January 2022 • 9 min read
Litecoin was launched in late 2011 as a fork of the Bitcoin blockchain. The idea behind Litecoin was to offer a more miner-friendly cryptocurrency - essentially one that the average user can mine without top-of-the-line hardware.
It was created by Charlie Lee, who used to work at Google and even spent some time at Coinbase. He saw some problems with Bitcoin at the time - namely its long transaction times and frequent network congestion issues - and wanted to solve them. With this, Lee created Litecoin and the Litecoin Foundation.
Otherwise, Litecoin has faster transaction times than Bitcoin, though a value nowhere near it. That and that Litecoin is more resistant to ASICs - specialized graphics cards focusing on mining cryptocurrency. This is how the asset is more accessible to the average miner than Bitcoin.
There are also four times the number of Litecoin than Bitcoin with only 84,000,000 LTC ever going to exist. While this makes it inherently less scarce, this does ensure the world could have an easier time adopting Litecoin as a traditional asset.
The two cryptocurrencies don’t differ much from one another aside from this, at least in terms of technical prowess. Where the deviation occurs, however, is in price.
Litecoin remained below $100 for the first half of its lifespan. However, in late 2017, the price hit $70 and then jumped to almost $400 by year’s end in the overall bull run. Since then, the asset has fallen hard down to the $100 area, give or take, though it jumped up toward $160 mid-2019 before falling back down.
Since then, Litecoin has ranged from the mid $30’s all the way to the $80 it’s sitting near right now. It’s not a particularly fruitful investment when considering the year-over-year value, but Litecoin is performing relatively well compared to most other cryptocurrencies.
After all, Litecoin is the number 5 cryptocurrency in terms of market cap, totaling around $5.4 billion as of this writing.
Like all cryptocurrencies, Litecoin is affected by various factors. The upgrades and price of Bitcoin are one such element.
For example, Litecoin used to correlate with Bitcoin’s price fairly closely, as most digital assets do. However, since Bitcoin integrated the SegWit upgrade and a few others that make it faster, Litecoin’s network begins to run out of unique offerings and starts to fall.
Conversely, the asset still has quicker transaction speeds than Bitcoin, making it quite useful for interested investors. As more of the mainstream world catches onto crypto, this speed and accessibility for miners could bring in an audience.
Also, there’s a limit of 85 million Litecoin that will be in circulation. This is much higher than Bitcoin’s 21 million and can increase the chances of it becoming a widespread currency. While this could mean Litecoin never reaches Bitcoin’s high value, it could mean the asset will be more stable in the future. 85 million Litecoin is a lot, and it’s absolutely reasonable for someone to own one or even more of these, pointing to a positive future for the asset.
After all, Litecoin is considered the silver to Bitcoin’s gold. Gold is much rarer than silver and sells for a higher price, but silver is used much more often as a transfer of value and has a lower price as a result. The same logic might also be emulated in the cryptocurrency space.
Similar to Bitcoin, Litecoin also experiences a halving. This literally halves the rewards given to miners for successfully validating a block. Each time this happens, Litecoin becomes a little bit rarer, and the price is projected to increase as a result. It’s impossible to track exactly what price changes are due to the halving instead of other factors, but one can be sure it plays a role in any changes of value.
Finally, the Litecoin platform has recently seen the launch of LiteBringer, an RPG video game that runs on the network. Gaming is often seen as the ideal way to teach users about blockchain, as it’s a fun way to learn about the ins and outs. LiteBringer allows users to buy in-game items, which increases the transactions on the Litecoin network. This can make the blockchain more appealing to outsiders, bringing in more money and increasing its value.
All of that said, what will Litecoin’s price be in a year? Three years? Even five? If you’re wondering whether or not Litecoin is a good investment, let’s take a look at some expert predictions.
LongForecast, a group that uses mathematical and statistical indicators to predict investments’ long-term performance, has a relatively optimistic Litecoin prediction over the next couple of years.
First off, the platform claims Litecoin will end 2020 at around $121. From there, it will range from $140 all the way down to $91 in 2021, dropping significantly from the year’s start. However, while it will remain around the $90’s and even the $80’s for most of 2022, the platform predicts a steep drop to the $40’s and $50’s in 2023.
2024 pains a brighter picture, however, with the asset jumping back to around $100 in the latter half of the year.
Trading Beasts does daily predictions of different assets based on “historical data and using a combination of linear and polynomial regressions.” As a result, the platform has Litecoin predictions up until 2023.
These predictions are more in line with LongForecast in that they’re somewhat optimistic about the future of Litecoin, but not nearly as much as Crypto Research Report.
The group believes Litecoin will drop to $69 before the year’s end, averaging around there for most of 2021 before hitting a potential $80 in December. 2022 should see a slight but consistent increase, peaking at around $108 at the end of the year.
That price increase should continue through 2023, peaking at around $133 come year’s end.
Digital Coin Price, a site that makes its predictions based on historical data, also has an optimistic look at the future of Litecoin.
The platform predicts Litecoin should hit $106 early next year before falling a bit come February. However, Litecoin should be on a significant uptrend the rest of the year, remaining at or around the $130 mark and peaking at $135 in November 2021.
From there, Digital Coin Price expects $145 come 2022, though the asset may drop to $127 the two years afterward. 2025 is a predicted uptrend for Litecoin, hitting $144 and then $148 in 2026. That positive outlook is great for Litecoin investors and correlates with a lot of the potential positive press the cryptocurrency space should receive.
The Crypto Research Report, a top research group that publishes tons of analytics about the cryptocurrency space, has quite the optimistic view of Litecoin’s future. In fact, the group expects Litecoin to hit $1,216 in 2025, then reach up to $2,300 by 2033 - a significant price increase indeed.
Interestingly, the group notes that off-chain transactions are on the rise, meaning that investors are purchasing Litecoin on exchanges like Coinbase and other spaces at an increasing rate. This could be seen as investors buying the assets to use as traditional currency - meaning they’re buying goods and services with Litecoin and other cryptocurrencies.
Most factors that will affect the future of Litecoin are similar to what affects it right now. In a way, history might repeat itself.
More halvings are bound to occur, meaning the asset becomes rarer and potentially increases in value. More games like LiteBringer could entice additional investors to the platform and other use cases like shops accepting the asset.
As more users find out about cryptocurrency, more will be willing to get involved with mining as well. Considering Litecoin is quite an accessible asset, we’re bound to see more miners enter the market, bringing more assets into circulation and affecting its price.
That’s not to mention that Bitcoin is on a high streak as of this writing. While both assets’ prices aren’t 100% correlated, one can expect that if people are flocking to Bitcoin, some of those users will check out the other cryptocurrencies in the top 10. Litecoin is sure to receive some positive press from there, considering it is to be the silver to Bitcoin’s gold.
Also, Litecoin is now the official cryptocurrency of the upcoming Atari console. Not only can they purchase the box with Litecoin, but they can also make game purchases and buy other interesting with the asset. Assuming Atari’s console is a success, this could be a huge unforeseen bonus for the asset’s future.
It’s impossible to predict Litecoin’s price perfectly. That said, there’s a lot of positive sentiment surrounding the asset, especially in its long-term.
As of now, most experts predict a higher Litecoin price as the years go on, even if it might take a couple of years for the significant hikes. That’s not to mention that more people are entering the cryptocurrency space than ever before. We’re bound to see additional applications like LiteBringer come to the platform. This could mean a higher price sooner than expected.
Keep in mind that many consider this time to be crypto’s early days. That we’re bound to see massive price hikes over the next decade or so as the technology breaks into the mainstream. While we can’t guarantee a profit, chances are investing in Litecoin now could result in significant gains down the line, assuming interest keeps rising.
Of course, it’s important to do your own research before putting money into a cryptocurrency. The space is volatile and is bound to fluctuate as time goes on.
Find out about more cryptocurrencies with a lot of potential in 2022 in our 2022 guide right here.
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