It has been twelve years since the world was introduced to the innovative ingenuity of cryptocurrency. The pioneering debut and subsequent success of Bitcoin have paved the way for an abundance of other new cryptocurrencies, creating an entirely new market altogether. To this day, cryptocurrency has been a hot topic amongst investors due to the substantial profit that could potentially be earned from a well-timed, well-calculated investment.
But with so many options available, it can sometimes be difficult to know which cryptocurrency to place your bets on. This article will explore a promising alternative to Bitcoin called Litecoin that could be a wise choice for your next investment venture.
What Is Litecoin, and How Does It Work?
Litecoin was created in 2011 by a former Google employee named Charlie Lee. Litecoin was the first-ever fork of Bitcoin, formed to enhance scalability and speed issues. Rather fittingly, it has been hailed as the silver to Bitcoin’s gold.
It did not take long for Litecoin to take the crypto-verse by storm. A decade later, it is still regarded as one of the most popular and capable cryptocurrencies available. This is partially due to the faster transactions and lower fees Litecoin has compared to its predecessor, Bitcoin.
Litecoin has adapted similar protocols like Bitcoin and also implements blockchain technology. However, Litecoin has an average block time of 2.5 minutes compared to that of Bitcoin at 10 minutes. The supply of Litecoin is 84 million, four times that of Bitcoin.
Should I Invest in Litecoin?
According to Litecoin price prediction for 2021, the general consensus amongst experts and analysts is YES. Here are some reasons why:
- Since launching, Litecoin has proven to have longevity, consistently ranking within the top ten cryptocurrencies in terms of market capitalization. To date, Litecoin is accepted by over 2000 merchants and stores across the globe, making it one of the most widely recognized cryptocurrencies on offer.
- Unlike the founder of Bitcoin, the ambiguous Satoshi Nakamoto, the founder of Litecoin Charlie Lee, has an ever-present identity and is a high-profile computer scientist who is extremely devoted to advancing Litecoin alongside a highly accomplished team.
- It is an established cryptocurrency that has demonstrated endurance in the market. The close relationship that ties Litecoin to Bitcoin furthers its credibility. As a result, the price of Litecoin tends to move in tandem with Bitcoin.
- In late 2020, Litecoin released the MimbleWimble testnet, which tests MimbleWimble-based transactions on their network. Users will benefit from enhanced confidentiality and fungibility. This is something that Bitcoin does not have and may very well be a key distinguishing factor between the two in time.
- Uniquely, Litecoin sets itself apart from other cryptocurrencies by partaking in various prominent sponsorship deals, including some in the sports industry, most notably the UFC and The Miami Dolphins of the NFL. This could lead to an increase in price due to public exposure and awareness.
- Unlike other cryptocurrencies, Litecoin can be bought using various fiat trading pairs through all major cryptocurrency exchanges such as Binance, Bitpanda, Coinbase, and CEX.io. Some popular fiat trading pairs include EUR, GBP, and USD. This means purchasing Litecoin is easy and can be done with traditional payment methods such as bank transfers and credit/debit cards. Some exchanges even accept Paypal!
Overview of Litecoin Predictions for 2021
Cryptocurrencies are notoriously subject to high volatility, and Litecoin is no exception. Thus predictions can be just as erratic. Here is a summary of predictions by reputable sources:
- Trading Beasts – approximately $150 – $170 throughout the year, a maximum high of $220;
- Ripple Coin News – lows of $150 and highs of $230 by the end of the year;
- DigitalCoinPrice – an approximate high of $300, then correction to $250;
- PrimeXBT – a maximum high of approximately $300 by the end of the year;
- Coinpedia – approximately $159 – $177 throughout the year, $198 at the end of the year;
- Coin Price Forecast – approximately $500 by the end of the year;
- Crypterium – approximately $600 by the end of the year.
Less optimistic predictions are:
- Capital.com – just a mere estimate of $67 by the end of the year;
- Long Forecast – fluctuating between $110 -$170 with a downward trend throughout the year.
Despite varying price projections, it is generally agreed upon that Litecoin will have an uptrend this year as well as Ripple. But of course, like with all cryptocurrencies, investing in Litecoin does not come without risk. Combining the expert predictions with the specific aspects of the altcoin itself, investing in Litecoin is seemingly a safe bet.
It is relatively cheaper than other reputable cryptocurrencies to invest in currently and can be bought in fractions. This would make it a viable option for those who wish to invest small amounts at regular intervals for a long-term investment.
The growing popularity and acceptance of cryptocurrencies is an indication that investing in crypto is a smart move. They are seen as an inflation hedge by some. With strong potential for prices to rise, many also perceive crypto as the digital equivalent of gold. Litecoin could be a great choice for new investors to begin their embark upon the world of crypto.