Litecoin, one of the oldest cryptos in the market, is up to the 30th largest crypto both by market cap and popularity. Though Litecoin’s main features were based on Bitcoin, it didn’t completely replicate or do as well as Bitcoin’s success. A lot of people are wondering why Bitcoin has not taken off in terms of price.
Although Litecoin was successful at the start, it has remained relatively low-key over the years. Let’s explore why this is and how you can learn from its mistakes to succeed in cryptocurrency trading.
The cryptocurrency space is unpredictable. Experts predict that the price of Litecoin may rise again in the future, but we have to take a number of factors into account before drawing any conclusions. At its current price on the market, LTC is still cheap and there is more to it than just history.
Lots of economic experts understand these trends, so they recommend that people invest in Litecoin now or wait until next year. The price of Litecoin is lower now than it was last year.
What is Litecoin (LTC)? How Does Litecoin work?
Litecoin is a cryptocurrency that is based on Bitcoin. It was one of the first-ever cryptocurrencies and now ranks as the 5th largest in the world. Litecoin was created by Charlie Lee, formerly of Coinbase and Google, as an alternative to Bitcoin. It uses a very similar blockchain to Bitcoin but with a few key differences that make it unique.
For example, they are both powered by a proof-of-work consensus and can be mined. However, Litecoin’s supply of coins is four times that of Bitcoin. This is 84 million Litecoins against 21 million Bitcoins.
Litecoin is also gaining traction in this space and has one major perk – it processes transactions 2.5x faster than Bitcoin. On the other hand, Bitcoin is more useful as a store of value given its high price.
But why is its price still so low, despite all the milestones achieved by this altcoin? To answer this question better, let’s turn back time and understand where Litecoin started.
How Does Litecoin work?
Litecoin (LTC) is a cryptocurrency that launched in 2011. It was created by an ex-Google employee, Charlie Lee. LTC has been around for more than 7 years and has a market cap of over $3 billion.
Litecoin is a lighter and faster version of Bitcoin, which is why it’s often seen as an alternative. The idea behind this coin was to provide a cheaper and faster option to all other coins.
Litecoin was started by Charlie Lee, a former Google Employee, in response to some of the shortcomings of Bitcoin. It has faster blocks at two and a half minutes compared with 10 for Bitcoin and uses the Scrypt algorithm compared with SHA-256. Which is faster than Bitcoin.
Litecoins can be mined using the Scrypt algorithm instead of SHA-256, which is used by Bitcoin. This allows CPUs and GPUs to be used as miners since they are not as expensive or as specialized, meaning that you can use these devices to mine Litecoins.
History of the Litecoin Price
Litecoin was consistently ahead of Bitcoin in terms of price but its value has never been able to catch up with the latter. For this reason, when looking at its price history we can see that it didn’t manage to keep up with Bitcoin.
Litecoin is an old Bitcoin fork, but it has always been among the top cryptocurrencies. It doesn’t have the same growth rate as Bitcoin, but you can always count on it. This is the main reason why investors are so interested in Litecoin.
When Litecoin was released, not many people were interested at first but around 2013 it became life and there was a lot of excitement from investors. It started trading at the price of $4.30, which is where it first had a bullish run and spiked to $44 in late 2013.
However, the price of Bitcoin fell below $20 sometime in February 2014. Most people expected the price to go back up again soon. This is incorrect. In August 2014, Litecoin bottomed out at $5 and there was a limited upside for prices after that point.
For the past couple of years, Litecoin would mostly sit between $1 and $4. However, back in 2017, prices spiked and Litecoin was able to redeem itself from the slump it’s been in.
Other digital currencies were experiencing an incredible increase in value around this time. For example, Ripple surged by a whopping 36,000% while Bitcoin’s value skyrocketed to over $20,000.
Litecoin was not left behind
Within a year, the price of altcoins has gone up by 8000%. Naturally, it’s dropped some since then. It had been going up and down until the start of 2018 when the price suddenly surged. The price dropped until June 2018 when it entered a wild phase of volatility.
At the start of Australia, prices rose and showed signs of taking off. Sure enough, Litecoin’s value skyrocketed on May 11th. However, when the country saw a crash in crypto prices after the coronavirus bug hit September 2019, values began to plummet and only experienced a slight recovery by early 2020.
Litecoin hit a new low of $30.49 on 12th March and then recovered in a matter of days. As we moved into the final months of 2020, the price for Ethereum was at about $61 and many predict that it will soon soar again.
Litecoin has been on the rise this year and with the long market bull run starting in late 2020, it’s no wonder its price quickly went up. Since then Litecoin has experienced a series of rises & falls yet it never went below $100.
Litecoin reached an all-time high in price at $412.96 in May 2021 before dropping to $133.
Why is Litecoin so low in price?
Litecoin has had a tough time gaining traction in the market and has given up a lot of ground to newer competitors. This is especially true when looking at the price charts from over the last few years. For example, Ethereum is now worth more than Litecoin. It came out in 2011 (four years before 2010), and it released its first currency, Delta, around the same time.
Unfortunately, Litecoin has a lot of problems that are making it difficult to grow further. The main problem is that Litecoin is similar to Bitcoin, which can make it hard for people to invest.
Although it has a smaller market presence than Bitcoin, Dash has its own strong suit. Crypto enthusiasts initially treated it as a copycat, but Dash’s quick transaction times now attract some of Bitcoin’s more persistent critics.
Due to LTC’s lack of growth, many investors have put their money in BTC. As a result, there is no incoming new capital at the moment, which means the price and transaction volumes remain low.
Generally, miners have been deserting Litecoin after the block reward was decreased. This has had a negative effect on the network’s hash rate, which has fallen steadily.
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