Litecoin is a cryptocurrency that has remained steadfast and often ranks among. The top coins by market cap despite being over six years old. As altcoins gain popularity, many believe that the price of Charlie Lee’s famous Bitcoin alternative could soon go up.
Despite being one of the most popular tokens on the market, and trading in consistently high volumes for over a decade. Litecoin’s value has been significantly fluctuating in 2020. Is LTC still a good investment?
The cryptocurrency market became a lot more active in 2021, with many interesting and – often unforeseen – developments. While it’s hard to say how any of the cryptocurrencies will come out on top at the end of this year. We’re certainly keeping our fingers crossed that Litecoin is one of them.
Here are the top three reasons why Litecoin might make you twice as much money in 2022.
Top Reasons Why Litecoin Has the Potential to Double Your Money
-Litecoin is a fantastic Bitcoin substitute
Litecoin is often characterized as the “little brother” of Bitcoin. According to Charlie Lee, the founder of they. The intention of Litecoin has always been to provide a cheaper and faster currency for smaller transactions. Despite this belief, Litecoin has always been seen as Bitcoin’s potential alternative.
Even though Bitcoin is the more established cryptocurrency. Litecoin was purposely designed to mimic most of its guidelines and infrastructure. These differences typically do not extend to any meaningful differences in service or purpose.
However, it has certain advantages over its predecessor. Whilst both rely on miners to validate transactions, Bitcoin uses the SHA256 algorithm whereas Litecoin uses Scrypt. The latter is much more scalable and allows for faster and cheaper transactions.
Despite Bitcoin’s meteoric price rise in 2021. There have been a lot of questions about whether it will remain a viable payment method. This includes worries over its transaction costs, block creation time, and energy consumption. The arrival of cryptocurrencies has caused a major shift towards alternative payment methods. Some, such as Litecoin and Dogecoin, have even been dubbed “a solution for scalable payments.”
Much of Bitcoin’s dominance has simply been the result of being the first cryptocurrency to exist on the market. Therefore, one would expect that in the age where there are so many altcoins and cryptocurrency options. One of them would enjoy similar initial success.
-Litecoin is a legitimate payment option
Litecoin is a better option than Bitcoin for small-scale peer-to-peer payments because the Litecoin blockchain offers much faster transaction speeds. One that happens in just two and a half minutes, compared to the ten minutes managed by Bitcoin’s blockchain.
For this reason, there are thousands of businesses around the world that accept Litecoin as a payment method. PayPal – the world’s biggest e-payments platform – accepts LTC. Which in turn opens up numerous opportunities for consumers to spend their crypto. In addition to this, there are plenty of cyber web stores that take Litecoin for payment. These include Travala, eGifter, and CryptoGames.
With an LTC payment option in over 100 countries and growing. You can now pay for goods around the globe with Litecoin. This cryptocurrency has been particularly popular for those in India or Indonesia recently. Turkish traders have shown a growing preference for Litecoin as a payment method.
LTC is gaining momentum in the US due to the quality sponsorship deals it has signed with high-profile organizations. For example, LTC is the official cryptocurrency of the Miami Dolphins NFL team and also sponsored a UFC event before. If Litecoin continues to gather pace as a viable payment option for retail transactions. Then it could well prove to be a smart investment in the mid to long term.
-Litecoin has banking credentials
Litecoin has been paving the way for other cryptocurrencies to get into traditional finance. Something that many others have struggled with. LTC has been around for a while. But this proves that cryptocurrency is making strides in establishing itself as a mainstream currency.
The Litecoin Foundation has struck a deal with TokenPay, a cryptocurrency company based in Switzerland. This agreement includes marketing and technological support for TokenPay.
Following the announcement of this deal, Charlie Lee commented that historically. It has been difficult for crypto projects to work with traditional banks. But the WEG deal would allow the Litecoin foundation to “work from the inside.” The idea is that eventually. The partnership should allow for products like crypto debit cards and better rates of interest.
-Litecoin has a strong foundation
Litecoin has a lot of prestige. Because it is backed by prominent Grayscale. The investment firm has always supported Litecoin. The Grayscale Litecoin Trust is one of its biggest investments in the crypto market.
Grayscale is bullish on Litecoin and has offloaded some Bitcoin in this acquisition. Which shows that they are seeing change across the wider crypto market.
This does not guarantee that LUFC will double your money in 2022. But it is a vote of confidence and if any institutional investors know the cryptocurrency market, Grayscale is one.
-The token price of Litecoin is really low
Bitcoin is trading at $4,300 per coin ($1.2 million per token). BTC is broken down into Satoshis of which there are a total of 21 million. If you want to claim an ownership stake in the Bitcoin supply, you’ll need to buy quite a lot of coins! While in practice, this shouldn’t affect returns as such – profit is measured in percentages after all – there’s a certain psychological aspect to consider.
By comparison, a whole Litecoin token is trading at around $89.99. Meaning that the average investor can acquire a much larger holding with a fairly small outlay. In addition to this, LTC can also be purchased for infractions. This can allow you to invest more and gradually add more Litecoin to your portfolio over time.
Litecoin’s lower token price means it is more viable to use as a payment method. Bitcoin has ironically become a store of value and even. Its smaller denominations are too valuable to be used in transactions. The increasing number of LTC holders might quell concerns about it being a cryptocurrency bubble.
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Litecoin Expert Opinions
According to most analysts, Litecoin has a lot of growth potential. A lot of people say that it is one of the best investments you can make in cryptocurrencies. It already has plenty of support from successful entrepreneurs and investors.
One example is Dan Gambardella, co-founder of Crypto Capital Venture. He has been a strong supporter of LTC for some time and has said. That he believes it will eventually reach $1,000+.
Elsewhere, Crypto Research Report Group put together an in-depth report on LTC. They concluded that by 2025, LTC will be worth $1,200, and by 2030. The current price of $343 is set to rocket up to $2,250.
In 2022, will Litecoin be a good investment?
Will Litecoin double in value by 2022? While it’s hard to say for sure, we’ve seen major crypto assets more than quadruple in value from similar lows. In any event. It has the potential to double when looking at its all-time high of $412.
Crypto always carries some degree of risk. But Litecoin has proven itself to be resilient in the past and currently holds a spot in. The top 25 cryptocurrencies by market cap. It is always one of the first tokens to get mentioned. When people talk about crypto investments.
It’s an exciting time for the crypto market and big changes are coming in 202. That could change the way digital currencies work. One of the biggest things to watch for with Litecoin is to see. If the price is tracking alongside Bitcoin, especially in cases where there might be a divergence.