The year of 2018 had been terrible for Litecoin. When the value of the coin started depreciating at the beginning of the year, a lot of people thought it was just a normal retracement because of the massive leap that the digital currency had made at the end of last year.
This time around, the trendline of the bears went too far. Sometimes, the digital currency acts like it wants to continue a bull run only to end up making a significant decline than before. This has made coin holders to lose interest in the coin and opted to sell the coin at a loss.
Nevertheless, considering the factors that are presently at play, Litecoin could be heading for better days. Due to some underlying developments, the value of Litecoin (LTC) is expected to increase again anytime soon. Here are some factors that could cause this to happen.
Litecoin Has Become Oversold
At the moment, Litecoin (LTC) is in the oversold territory. The value of Litecoin declined drastically, and there are so much panic selling and market overreaction. Almost all LTC holders are considering selling. In the financial market, when an asset goes deep into the oversold zone, the value of the asset is expected to rebound in no time.
The oversold area only lusts for a short period before the market breaks and the forces of the bears are overcome by the forces of the bulls. This is what will soon happen to Litecoin. Nevertheless, the rebound may not take the value of LTC back to its original level, but it will start moving up gradually.
NYDFS gives itBit the Green Light to List Litecoin (LTC)
itBit is one of the digital currency trading platforms that are regulated by the NYDFS to trade digital currencies in the U.S. Being an exchange that is regulated, it’s expected to attract lots of investors. The recent decision of itBit and the fact that the NYDFS has given them a green light to list Litecoin (LTC) is expected to correct the value of LTC higher.
Why Richards Believes in Cryptocurrency
Franklyn Richards, the director of Litecoin (LTC) foundation who has been working tirelessly to keep ensure that the Litecoin (LTC) banner flies high, said cryptocurrency would be institutionalized eventually. He made this comments when speaking about Litecoin (LTC) to CCN.
Richards sees crypto as the next big thing in the finance industry. Citing that we are just at the beginning of electronic currency. He is looking forward to building the future of money (crypto). When asked about how he got involved with Litecoin’s founder Richards replied that he reached out to the ex-Google employee on Reddit. According to him, Litecoin (LTC) was launched because Bitcoin (BTC) was expensive.
At the time Litecoin was launched Bitcoin (BTC) was just crossing over the $100 USD barrier. The was also optimistic that because Bitcoin is better for institutions to use, many users will adopt it unknowingly which Richards believes will hugely shape the price of the token.
Digital Currencies will be Absorbed by Centralized Authorities
When asked about his views regarding the debate that digital assets will be taken over by centralized entities, Richards says:
“We have to face the facts. I believe centralized institutions have a good benefit to derive from adopting crypto. They will ultimately pass these benefits to their users. It’s capitalism. If I succeed in offering my users something much better and cheaper, I will be able to attract more users. We are currently seeing this institutional adoption now.”
“Ice Markets, the New York Stock Exchange parent company, recently launched Bakkt. CME is also launching institutional trading and the security of digital assets. Gemini is also getting involved. People now realize that it does not matter whether the user knows anything about the technology. We do not know how banks or cards work, but we do know that they render us a service. If institutions can provide better service through a decentralized currency including Litecoin (LTC) or Bitcoin (BTC), it will be the preferred option for users. Which is why it will work.”
What are Litecoin’s Advantages?
According to Richards:
“Litecoin (LTC) has lower fees and quicker block time.” “Let’s be honest here, LTC may offer faster block times, but these means that the blocks will be less secure because it will take up to 2.5 minutes to reverse a block rather than 10 minutes. Litecoin (LTC) is very strong. It is more of a complement of Bitcoin (BTC) rather than a competitor. Yes. Bitcoin (BTC) will stay at number one for a long time, but both tokens will strengthen each other. Litecoin does not compete, it benefits, especially with atomic swaps and the Lightning Network.”
He adds that:
“Litecoin has a large amount of liquidity which is very important. Currently, there isn’t any other coin that compares to LTC in liquidity in the market. Ethereum (ETH) is fine, but it isn’t money. It is an app platform that isn’t really decentralized because users are printing tokens on the platform. Its blockchain has moved from a few gigabytes to a terabyte. Bitcoin (BTC) and Litecoin (LTC) do one thing well, and that thing is money. This money let’s either token complement one another.”