Up 500%：What is the strong supporter for Litecoin?
Surging over 500 percent, Litecoin is always prominent in the top ten list of cryptocurrency market value. With bitcoin struggling to maintain gains above $8,000, investors may continue to pour money into altcoins. Litecoin, in particular, could shine bright over the next few weeks, as the mining reward halving is now less than 70 days away.
On Aug. 6, the reward for mining coins on litecoin’s blockchain will drop from current 25 LTC to 12.5 LTC. The process, aimed at curbing inflation, is repeated every four years and markets tend to price in the supply-altering event well in advance, according to historical data.
Coins like BitShares, Dogecoin, namecoin and IFC have fell behind. As a coin imitates bitcoin, how can litecoin survive and thrive?
According to litcoin founder Charlie Lee, he created the litecoin based on the bitcoin code for fun, but the mining algorithm changed to scrypt, a memory-focused algorithm. With a total sum of 84 million, litecoin has the same time of halving as bitcoin.
Litecoin half- year charts
Litecoin has a faster transaction speed, lower service charge and higher convenience. In the age of no lightning network, litecoin defined itself as an complementary cryptocurrency for bitcoin. In 2019, Charlie Lee plans to integrate the MimbleWimble Privacy Protocol into litecoin’s upgrading, it intended to enhance scalability and privacy for litecoin. After that, litecoin became a pilot area for bitcoin.
But now the cryptocurrency lacks cash flow and real industry support, its value is not clear and its speculative nature is strong. Price becomes the core factor attracting public attention.
In fact, projects without communities are hard to survive and develop. Rising is a manifestation of greater consensus. And the consensus can be decomposed into technology, security, stability, demand and so on. By contrast, the disappearance of PPC, which created POS, is largely due to the lack of cohesion in the community. The CEO of COINBIG exchange pointed out that “if there is a high degree of consensus and wide acceptance, then it is valuable.”
Li Xiaolai said in the recording door that: “The consensus of leek is also a consensus.” In the early stage of the development of cryptocurrency, for an cryptocurrency, the price and community will affect whether it can cross the bear market to some extent. Essentially, the wealth effect determines whether the cryptocurrency has a “consensus”.
After the supply cut, litecoin’s price trend remained sideways for nearly two years before surging to new all-time highs in 2017, potentially laying the blueprint for what is to come after its block rewards are halved once more. Even then, LTC may outperform BTC, courtesy of the reward halving boost, leading to a big rise in LTC/BTC, which is currently trapped in a falling channel (above right).