Bitcoin and Litecoin are two true giants in the cryptocurrency world. Bitcoin’s launch in 2009 catapulted cryptocurrency into the world and it remains the cryptocurrency with the highest value by market capitalization.
Litecoin, on the other hand, grew out of a fork of Bitcoin in 2011 that aimed to make the crypto more scalable and is considered one of the first “altcoins”.
The two cryptocurrencies have many differences, including the difference in rewards in the blocks (for $BTC currently 6.5 while for $LTC it is reported to be 12.5), or the algorithm used for mining. But they also have some similarities. One is precisely halving.
This event punctuates, as all investors know the life of the cryptocurrency king, but it is also very significant for the $LTC cryptocurrency.
Let’s find out what we can expect and dispel some myths about this crypto that continues to outlast BTC.
Why use Litecoin?
We certainly won’t be talking about a cryptocurrency as famous as Ethereum and BTC, but know that it is No. 6 by market capitalization.
Litecoin is one of the most important and useful cryptos out there. Used for economic transactions and to be more efficient for everyday use, rather than as a store of value, it is a more practical asset.
We know that transactions are faster and cheaper than, for example, BTC. Although generally of lower volumes. The undoubted utility is therefore about the speed and savings of transactions. Which using blockchain technology, allows reserves of value to be transferred in seconds and for pennies.
What is crypto halving?
Reducing the availability of currencies helps a lot to preserve or increase their value.
The principle behind halving is very similar. Although it is a process introduced with blockchain and particularly cryptocurrencies that leverage Proof of Work.
What happens in essence is the halving of cryptocurrency that is received as a reward following the blockchain validation process called mining.
In essence, this system means that miners will receive 50 percent less coins for each block mined. This mechanism was put in place to control the inflation rate of the cryptographic asset and to create scarcity. Which can increase its value over time.
As the block reward decreases, it becomes more difficult and more expensive to mine new coins. Thus leading to a reduction in the supply of new cryptocurrencies introduced to the market.
Simple data set that allows certain blockchains to survive and appreciate over time.
Halving Litecoin: is it really significant?
Guess whose turn it is: yep just $LTC. In the case of Litecoin, this event occurs every 840,000 blocks mined, which takes about 4 years.
Currently, the block reward is 12.5 LTC and, after halving, the reward will drop to 6.25 LTC. Expected date for the halving of Litecoin: August 5, 2023.
Obviously a lot of buzz is expected for the event. In fact this is the third halving and in the previous ones there has been strong growth. Albeit not as important as its big brother BTC.
In 2015 Litecoin grew by 312% and more or less the same happened after the second one!
It is therefore an important event for sure.
Read also: Bitcoin’s value rising: +60% after banking crisis, what’s going on?
Predictions, will Litecoin reach $10,000?
It is not likely that $LTC will reach $5,000 anytime soon, let alone $10,000. However, experts have made optimistic predictions about Litecoin’s prices and said it could reach $1,000 in five to ten years.
It is almost impossible for Litecoin to reach $10,000 since it will already require $74 billion in market capitalization to reach $1,000.
Thus, for LTC to cost $10,000 within the next ten years, we should assume a market of $740 billion! Never say never, however, this is a very unlikely outcome.
It is indeed a huge sum and it does not take a market genius to know that it will not happen in the next few years. So, if you are wondering, the answer is no.
$LTC 2023 forecasts
The technical analysis data and the upcoming halving event scheduled for August 2023 seem to make a good basis for the next bullish Litecoin rally.
With the new year, crypto seems to have woken up and, albeit tentatively, is continuing with a slow recovery.
If the expected post-halving rally kicks off with the market positive, the two main targets above $100 will be around $180 and then $300.
The all-time high for $LTC is around $410 reached in May 2021. And, based on what has happened in the past (which we recall is not necessarily what will happen in the future), we might even expect an overshoot within the next few years.
Read also: Which are the countries with the most cryptocurrency users? The ranking of 2023