Litecoin price prediction 2019
In this article we share our expectations of litecoin in 2019. Litecoin is a cryptocurrency that ha been derived from bitcoin, but there’s one important difference. New transaction blocks are created each 2,5 minutes, instead of every 10 minutes, as is the case with Bitcoin.
Regarding market value, litecoin was part of the top 5 cryptocurrencies in 2017 and 2018. In the meantime the coin has been overtaken by other cryptos such as bitcoin cash (BCH), EOS, and Stellar (XLM). But what can we expect from litecoin in 2019?
Litecoin’s price is hard to predict
Before we look ahead, a short summary of the litecoin price up until now:
- Late 2017, the price of litecoin developed rapidly. On December 19, the so-called all-time high was reached with a price of almost 320 euros!
- 2018 is the year of the bear market: litecoin’s price mainly decreases.
- On October 7, 2018, litecoin was worth only 1 euro for a few minutes on the Bitstamp exchange. This was due to a trading bot that lost control.
- On January 1, 2019, litecoin is worth 27 euros.
How will the price develop in the future? Unfortunately we can’t predict an exact price; we simply don’t know it. However, there are some factors that can contribute to an increase (or decrease) in price in 2019.
Pioneers in new technologies
Litecoin is sometimes put away as irrelevant, because bitcoin now has SegWit and the Lightning Network. But if you look at it that way, you lose sight of something important, litecoin is often used as a kind of ‘test environment’ for new technologies.
For example, both SegWit and the Lightning Network were first implemented on the litecoin network before it was, implemented on bitcoin. Litecoin is also working on atomic swaps. This is a technology that makes communication possible between different blockchains. With atomic swaps you are able to exchange your bitcoins directly for litecoins, and vice versa.
Litecoin and bitcoin are therefore not competitors. Both coins can actually reinforce each other's position. Will the price of bitcoin rise in 2019? Then it may very well be possible that litecoin also benefits from this.
Litecoin block halving is coming soon
A lot is written about the bitcoin block halving in the crypto community. But what many people seem to forget is that litecoin will also undergo a block halving. For litecoin, the next block halving is estimated to take place on August 8, 2019.
But what is the litecoin block halving anyway? Miners receive a reward in the form of newly created litecoins for mining transactions. This reward is halved every 840,000 transaction blocks. This means that less litecoin at a time come onto the market. The reward will be halved from 25 litecoin to 12,5 litecoin.
What consequences does the block halving have for the price? Some traders believe that the litecoin block halving directly influences the value of litecoin. And although this is possible, it can’t be guaranteed. Here’s why:
Litecoin miners often sell their litecoin to cover their costs (electricity, mining equipment, etc.). If the reward in litecoin is halved, fewer litecoins are sold, and the sales pressure will decrease. If the supply and demand remain completely constant, that can lead to a price increase. But keep in mind: nothing is certain, especially in the crypto world.
New software version: lower transaction fee
Litecoin developers release a new version of the software every so often. With each update, new functions are added. The next version of litecoin is Litecoin Core 0.17.0.
The most important aspect of the update is that litecoin developers want to lower the transaction costs by a factor of ten. Currently, a litecoin transaction costs 0.001 litecoin per kilobyte on average. With the new version a transaction will cost 0.0001 litecoin per kilobyte. Converted to euros that’s less than half a cent per transaction!
Head of development at Litecoin, Adrian Gallagher, explains this: “To encourage an increase in adoption and usage of Litecoin, I think lowering fees are the first step. We’re not even close to block limits and the block size on disk is pretty small (20GB) relative to other coins.”
But Github remains silent
The developments that we have discussed here are promising. But can litecoin live up to these expectations? On Github it remains remarkably quiet around the currency. Github is a meeting place for programmers, where they can propose improvements for the litecoin software. No new improvements have been made to litecoin since October 2018.
For example, the new version of Litecoin Core was already announced in October 2018, but as far as we can find this version hasn’t been released yet. It’s still unclear when the new version will be released.
However, we must mention that Litecoin developers do regularly post updates and news about litecoin-related events on the blog channel Medium.
How will litecoin develop? If litecoin grows in the use of the Lightning Network, amongst other things, it could go fast. The block halving and the upcoming update of litecoin can also be positive developments. On the other hand, it is rather strange that there is so little news about the developments of Litecoin protocol. But of course we will keep an eye on it for you!