Litecoin is a cryptocurrency, which was created in 2011 as a lightweight alternative to Bitcoin; the two key differences between them are: - Litecoin's smaller time intervals between adding new blocks to its Blockchain, which is supposed to decrease transaction times
Litecoin had a massive correction with the rest of the market. In fact, it was one of the worst performers among cryptocurrencies last month. As attractive as it looks from an investment point of view, one has to ask what need there will be for coins like Litecoin once Bitcoin Lightning Network comes into effect. Litecoin (LTC) has had most of its charm for to its $0.40 transaction fee and low price. The price today is no longer in single or double digits and the very edge of transaction fee is challenged by Lightning Network which could literally put coins Litecoin out of business if they don’t have anything else to stay relevant
This could also explain why Litecoin had one of the steepest falls during every correction. This is vindicated by the fact that most of Litecoin’s value arise from hype and fomo during the Coinbase listing. While the weekly LTC/BTC chart may look good for an investment opportunity, it still seems like a big challenge for LTC to have any edge over BTC in light of the recent events.
Litecoin has been very active the past few months trying to sign partnerships in order to secure its future. It has recently partnered with Aliant Payments System. However, the end seems near when you see projects like Litepay going kaput. We seem to be at a similar stage of the dot com boom where investors are now more concerned about which projects to pick and see their actual value. In the beginning, people were picking anything and everything just because it was dirt cheap. Now that it is no longer the case, investors will be more concerned about practical use cases of crypto projects they invest in.
Litecoin price could not stay above $125 and declined against the US Dollar. LTC/USD is finding bids near $113, but it remains at a risk of more losses.
Key Talking Points:-
->Litecoin price started a fresh downside and declined below the $125 support (Data feed of Kraken) against the US
Dollar.
->There was a break below a major bullish trend line with support at $126 on the hourly chart of the LTC/USD pair.
The pair is currently correcting higher, but it will most likely face sellers near $125-126.
Litecoin Price Forecast
Yesterday, we saw a nice upside move above the $125 level in litecoin price against the US dollar. The LTC/USD pair traded towards the $135 level and formed a high near $135.96.
Later, a fresh downside wave was initiated and the price declined below the $130 level. The worst part was the fact that the price failed to hold the $125 support. Moreover, there was a break below a major bullish trend line with support at $126 on the hourly chart of the LTC/USD pair.
Charlie Lee, the Founder of Litecoin has been very vocal about addressing questions related to the future of Litecoin (LTC) when Lightning Network comes into effect. He argues that Litecoin will continue to have a use as Bitcoin transactions will still be more expensive than that of Litecoin even with Lightning Network. He uses the analogy of crowded and less crowded highways to compare the two. However, I think it is a bit too early for Charlie Lee to comment about the speed and cost of lightning network and as to whether or not it can put him out of business. What’s important though is for Litecoin to find a way to stay relevant. It can act as a sidechain for loading Bitcoin on to the lightning network or find other uses to coexist with BTC much like Silver and Gold.
Regarding Abra’s involvement with Litecoin, he said that the firm decided to migrate from Bitcoin’s smart contracts to Litecoin’s network due to the higher trading rates.
While comparing Litecoin and Bitcoin Cash, he said that both the technologies are almost the same except that all the Bitcoin holders will have Bitcoin Cash by default due to which the BCH supporters are more. He also mentioned that the security for Bitcoin Cash is very low because it shares the same hashing function as Bitcoin, making it more exposed to hacks.
Charlie believes that the price variation of any coin is only due to the market rates and the underlying technology should not be responsible for the same.
Towards the end of the session, he stated that Fungibility is the main feature which all the transactions that involve money are lacking. He says that we can expect ‘bulletproof and confidential transactions’ to be implemented based on the Lightning Network within a year.
And finally, he mentioned some of the reasons why somebody should hold or buy Litecoin; It provides much value and one can use their money without being censored and the transactions can be done quickly and effectively.
Johnny T, a cryptocurrency enthusiast tweeted:
“Charlie great interview! When will confidential transactions be added to litecoin? Also will that be enabled by default? ”