Litecoin price prediction 2020
In 2019, Litecoin has recovered quite well from the 2018 bear market. What is to be expected of the year 2020? Let’s find out in this article.
We’ll start with explaining a bit about Litecoin itself. Litecoin is a cryptocurrency that shares many similarities with Bitcoin. There is an important difference though. New transaction blocks are created each 2,5 minutes, instead of every 10 minutes, as is the case with Bitcoin.
Litecoin has been in the cryptocurrency market cap top 10 for many years. In the early days, litecoin even had a top 3 spot.
Litecoin’s price is hard to predict
You’re probably here trying to find out what litecoin’s price will be in 2020, but I’m afraid we will have to disappoint you a bit. The exact value of litecoin is hard to predict.
We can say that litecoin has had a turbulent year:
- On January 1st, 2019, one Litecoin is worth 27 euros.
- That doesn’t last long though, the price increases rapidly. In March 2019 there are the first signs for a substantial price increase.
- On March 10, Litecoin surpasses the 50 euro mark for the first time in 2019.
- March 27, the litecoin price has now doubled. One litecoin is worth over 100 euros.
- Curious about the current Litecoin price? You can check it out on this page.
However, 2019 has something in store for litecoin that could have an impact on its price: the Litecoin block halving. What the halving entails and what kind of impact it could have on the price we’ll explain below.
Aftermath of the Litecoin block halving
On the 5th of August the second Litecoin block halving took place. With a block halving, the miner rewards gets halved. Before the halving, litecoin miners received a reward of 25 litecoins per block added to the chain. After the block halving, the reward got reduced to 12,5 litecoins per block added to the chain.
This is the second block halving since Litecoin was created. Last time after the halving, there was a clearly visible pattern in price. Some analysts predict something similar to happen in 2020:
- In anticipation of the halving the litecoin price increases.
- After the halving the price drops. In 2015, the litecoin price dropped from 8 to 2,14 euro in a short matter of time. That means a decrease in value of 73,3 percent.
- Not long after, the price skyrockets. On December 19, 2017, Litecoin reaches it’s all-time-high of 329 euros.
Is it realistic to predict the same pattern in 2020? It might be a bit early to make a statement about that, but the price increase in anticipation of the halving sure was a fact.
Technical improvements: enhanced fungibility and privacy
In conclusion, we can expect a lot of technical improvements from Litecoin. Charlie Lee, the creator of Litecoin, tweeted in 2019 that he would like to shift the focus of Litecoin. He wants to increase the fungibility and privacy of the network.
Fungibility means interchangeability. Or in other words: if you hold two litecoin next to each other, there must be no differences between these two coins.
Cryptocurrencies now seem interchangeable, but that isn’t entirely true. All transactions are public on the blockchain. If (part of) your litecoin is ever used for illegal purposes, your coins are always "contaminated".
Privacy will improve fungibility by making it more difficult to retrieve information. In 2019 and 2020, Charlie Lee therefore wants to add Confidential Transactions on Litecoin. With Confidential Transactions, it’s possible to hide the value of the transaction. For example, you can’t look up how much litecoin has been sent on the blockchain.
"Fungibility is the only property of sound money that is missing from Bitcoin & Litecoin. Now that the scaling debate is behind us, the next battleground will be on fungibility and privacy.
I am now focused on making Litecoin more fungible by adding Confidential Transactions."