A year ago, litecoin price prediction spoke about the great prospects of this coin. But as time passed, the price dropped from 268 to 38 pounds. On the stock exchange of traditional assets, such a movement would be called a collapse, but there are certain rules in the cryptocurrency trade.
Initially, this coin was created as a competitor to its older brother, Bitcoin. As soon as it turned out that a large number of users were interested in transactions in the blockchain, it became worse to cope with the execution of payment transactions. Delays reached several days. There was even an opinion that BTC would soon lose its dominant position. In those days, litecoin predictions talked about the imminent rise in the price of an asset.
However, the situation went on a completely different scenario. Just Bitcoin was able to maintain leadership, and its competitors began to lose capitalization. The reason lies in the further development of technology. New coins were designed to solve narrow problems:
In this chain, Bitcoin could find the most interesting and profitable niche, it turned into a financial instrument. This was helped by the limited emissions and the fact that it became the first among equals. It was futures and options on BTC that became sought after by large investors. Since the number of other cryptocurrencies exceeded 2000, buyers lost interest in risk diversification. Yes, they sometimes earn on startups, but this is a very short-term investment. That is why litecoin value prediction was not effective enough.
Litecoin Core developers are taking steps to grow their product. In October 2018, hardfork occurred, as a result of which the transaction size in the block decreased 30 times. This led to the fact that the confirmation of payment there will take much less time.
One of the major problems of the coin was the high size of the commission. By the standards of conventional bank transfer, the amount of five pence per transaction seems not very large. However, for the cryptocurrency, this is a large commission that forces users to conduct the less vigorous activity. After hardfork commission will decrease tenfold. It is expected that it will not exceed 0.5 pence, which will allow intensifying trade.
However, there are doubts about the rapid rise in the price of cryptocurrency. The downtrend continues throughout the year, and for its fracture, more weighty arguments are required.
According to surveys, up to 80% of financial experts await the coming global economic crisis in the coming years. Of course, the dollar settlement system for many years successfully coped with its tasks, but now there is a turning point.
The US national debt exceeds $ 21.5 trillion, which is more than its annual GDP. Similarly, in Europe, where some countries have accumulated huge debts. This credit bubble will burst sooner or later, which is beyond any doubt. And then society will need a new basis for financial development.
Some experts say that it is cryptocurrency that can become this rod. If the situation follows this scenario, then for litecoin future predictions will be positive. It turned out that this coin has not yet been able to find its niche. Because of this, its cost is constantly decreasing. But there is a version that very soon the markets will again need a “silver bitcoin”. You can not think ahead that happens that way. However, there is a possibility of a positive development of the situation.