Litecoin’s Value Is Up By 330% In 2019 Year-To-Date But No One Seems To Be Talking About LTC
- Despite all of the positive developments taking place within the world of crypto and blockchain, technical data seems to suggest that merchant tx’s account for only 1.3% of all economic activity associated with BTC, BCH etc.
- A number of experts are still not convinced about Bitcoin’s utility as a long-term, daily transaction medium.
Since the start of 2019, Litecoin’s [LTC] value has surged by more than 330%, thereby outpacing all of its closest rival currencies such as Ethereum, XRP and Bitcoin by a huge margin. Additionally, as things stand, LTCs market cap currently stands around the $8.4 billion mark — thereby making it the seventh-largest altcoin in the world.
In the wake of these developments, a host of experts are saying that this latest financial rally, in part, can be attributed to Litecoin’s “upcoming halving event” — which will see the rewards associated with the premier cryptocoin being slashed by 50%.
For those of our readers who may not be aware of what this concept represents, we can say that a halving strives to “not only drive up the price of a digital asset, but also prevent its value from eroding in the future”.
- After the completion of LTCs upcoming halving event, miners will receive (i.e. after August 6) 12.5 new LTC per block as opposed to the 25 LTC that they were previously used to obtaining.
- A typical halving usually happens once every four years. In this regard, we can see that the last time LTC went through such a process, the altcoin’s value skyrocketed by over 60% (that too three months prior to the event).
- Over the course of the past 12 months or so, cryptocurrencies have been gaining wider acceptance from mainstream institutions. This is highlighted by the fact that a number of Wall Street players are now slowly realizing the true potential of this burgeoning asset class.
Since the start of 2019, Fidelity Investments as well as AT&T Inc have allowed their clients to complete their purchases using various digital tokens.
Owing to the aforementioned developments, the price of Bitcoin has increased by a whopping 120%. Similarly, Ether, too, has seen its value surge by 100% since the start of 2019.
LTCs daily transaction count reached its peak during January 2019, following which, it reduced by a whopping 84%.
In closing out this piece, it should be mentioned that a number of financial commentators such as Bloomberg’s Aaron Brown are of the opinion that Litecoin’s financial future is directly linked to Bitcoin. Further elaborating on his stance, Brown was quoted as saying
“It’s an established, convenient transaction currency well suited to a world in which Bitcoin is the store of value. I don’t think it has much value in a world in which Bitcoin prices are low.”
During the height of the 2017 crypto bubble, Litecoin founder, Charlie Lee, was criticized heavily for liquidating his LTC assets — since many believed that he cashed out because he knew that the digital currency would lose most of its value within the next 6-8 months (which it incidentally did).