This morning, Bitcoin was down 17 per cent , Ethereum was down 21 per cent, Litecoin had dropped 20 per cent and Ripple a whopping 30 per cent.
And that’s just in the past 24 hours. The cryptocurrency market has been in the red for a few days now, following news reports of a regulatory crackdown in South Korea and China.
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Many people are searching for littecoin predition 2018 but once must realise, with cryptocurrencies, nobody really understands what factors influence the coins. Therefore, to make a prediction is not a very prudent move.
Let us decipher Litecoin in the following section.
Related reading: top 10 cryptos in 2018.
In this article
Litecoin LTC Facts
|Market Cap||$11,064,726,958 USD|
|Circulating Supply||54,12,508 LTC|
|Maximum Supply||84,000,000 LTC|
- As on Jan 18, 2018 Litecoin price level is down approximately 50% from its all-time high of $375.29 reached in December.
- Litecoin has been regarded to as the silver to Bitcoin and this is the reason experts are explaining that it is just following Bitcoin.
Should I Invest in Litecoin LTC?
The kind of volatility which we have witnessed in recent times as far as crypto currency is concerned, makes it an extremely risky instrument for investing money.
Moreover,cryptocurrencyy should not be seen with an investment perspective. Instead it is designed to serve as a medium of exchange and therefore should be viewed with that perspective only.
Because people and for that matter markets are driven by speculation and rumors that’s why we observe such kind of supernormal spikes in price chart.
But in case a return from any kind of investment appears too good to be true than such form of investment should always be taken with a pinch of salt because such instruments and such hikes may be a bubble.
Litecoin LTC Risk
Following are the risks associated with crypto currencies in general-
- Digital currency coins are encrypted to keep them secure—but there’s a potential drawback there.
This coding identifies the currency itself, but not its owner. Whoever holds the coin’s encryption code becomes its owner, and there’s nothing in the coin’s coding that says it belongs specifically to you—or to anyone else.
This built-in anonymity feature means when a coin is stolen, it’s gone—and you have little to no recourse in getting it back.
- Cryptocurrency can, in theory, become worthless; Bitcoin admits as much on their FAQ page.
Investor interest could drop off, the overall effects of world economies could become so severe as to affect cryptocurrency value—even with safeguards in place, extreme factors could have an effect.
Just as you should be aware of the market risks we listed above, you should also know other risks can affect digital currency—just as they can any financial tool.
Again, it’s not a reason to give up and walk away—but you should go into the situation with your eyes wide open.
- Unfavourable government regulations, or even ban of the cryptocurrencies in certain countries including India impose a huge question mark on sheer existence of cryptocurrencies.
Where to Invest Instead of Litecoin?
Considering the degree of risks involved in cryptocurrencies, one can explore several other money market instruments, which provide a safe and promising measure to park your hard-earned money. One such instrument is Mutual-fund.
As mutual funds are managed by expert professionals, even if there is some risk involved at times that risk is calculated and does not expose you to some indispensable disaster.
Still if you want easy returns and are open to risk then you can try investing in small cap funds which is still better than diving in uncharted waters of cryptocurrency.
History of Litecoin LTC
Litecoin was released via an open-source client on GitHub on October 7, 2011 by Charlie Lee, a former Google employee. The Litecoin network went live on October 13, 2011.
It was a fork of the Bitcoin Core client, differing primarily by having a decreased block generation time (2.5 minutes), increased maximum number of coins, different hashing algorithm (scrypt, instead of SHA-256), and a slightly modified GUI.
During the month of November 2013, the aggregate value of Litecoin experienced massive growth which included a 100% leap within 24 hours.
Litecoin reached a $1 billion market capitalization in November 2013. By late November 2017, its market capitalization was US$4,600,081,733 ($85.18 per coin) By mid-December 2017, the coin’s marketcap had reached US$20,000,000,000 and each litecoin was valued at approximately US$371.00.
In May 2017, Litecoin became the first of the top-5 (by market cap) cryptocurrencies to adopt Segregated Witness.
Later in May of the same year, the first Lightning Network transaction was completed through Litecoin, transferring 0.00000001 LTC from Zürich to San Francisco in under one second.
How Does Litecoin Work?
Like all cryptocurrencies, litecoin is not issued by a government. Instead being regulated by a Central Bank litecoins are created by the elaborate procedure called mining, which consists of processing a list of litecoin transactions.
Unlike traditional currencies, the supply of litecoins is fixed. There will ultimately be only 84 million litecoins in circulation and not one more.
Every 2.5 minutes (as opposed to 10 minutes for bitcoin), the litecoin network generates what is called a block—a ledger entry of recent litecoin transactions throughout the world.
And here is where litecoin’s inherent value derives.
The block is verified by mining software and made visible to any “miner” who wants to see it. Once a miner verifies it, the next block enters the chain, which is a record of every litecoin transaction, ever.
Litecoin Price History
Litecoin has plunged to the sixth-largest cryptocurrency by market cap after losing half of its market value in less than a month.
The broader cryptocurrency market has suffered sharp declines lately, but Litecoin’s drop has been even more severe.
So one should be extremely cautious while placing one’s hard earned money in an instrument which is already on a falling trajectory.
Now after comparing all the benefits and risks involved with a volatile resource like a Litecoin, we would like to conclude that considering the huge amount of risk significantly outpaces the benefit that comes along, it is better to explore other investment options.
You can definitely invest in coins but only an amount you don’t mind losing – like betting.
Disclaimer: the views expressed here are those of the author. Mutual funds are subject to market risks. Please read the offer document carefully before investing.