Litecoin is a stalwart of the cryptocurrency market, having more or less maintained its position amongst the top coins by market cap since its inception in 2011. Now, with the ‘age of the altcoin’ almost upon us, many are predicting that Charlie Lee’s famous Bitcoin alternative could be due a price run.
Despite being one of the most famous tokens on the market, not to mention trading in consistently high volumes for over a decade, Litecoin saw a fairly chaotic 2020 with its value fluctuating significantly month to month - so is LTC still a good investment?
Many crypto analysts have suggested that Bitcoin’s market dominance could be nearing its end - the coin is simply too costly, both financially and environmentally, to be considered a viable means for everyday retail transactions. This means that the spotlight may soon shine on altcoins that can step in and fulfil BTCs original role as a secure means of value exchange.
The cryptocurrency market really heated up in 2021, with numerous exciting - and often unforeseen - developments. Whilst we cannot say for sure which tokens will emerge as the front runners by the end of the year, we firmly believe that Litecoin could well be a legitimate contender.
In the following article, we’ll consider 5 reasons why Litecoin might just double your money in 2023.
Contents:
- 5 Reasons Why Litecoin Could Double Your Money
- What Are Analysts Predicting for Litecoin in the Coming Months?
- Expert Opinions on Litecoin
- Conclusion - Is Litecoin a Good Investment in 2023?
- Where to Buy Litecoin
- FAQ
5 Reasons Why Litecoin Could Double Your Money
1. Litecoin is a great alternative to Bitcoin
Litecoin has often been touted as the silver to Bitcoin’s gold. Whilst Charlie Lee has always maintained that his token was never meant to compete directly with the original cryptocurrency and was instead intended to be used for smaller transactions, Litecoin has nevertheless always been seen as a potential alternative to BTC.
At their basic level, both coins offer a means for the exchange of value and Litecoin was actually consciously modelled on Bitcoin, replicating its infrastructure save for a few key changes. Ultimately, they both provide the same service and both are limited in their smart capabilities.
However, Litecoin has certain advantages over its predecessor. Whilst both rely on miners to validate transactions, Bitcoin uses the SHA256 algorithm whereas Litecoin uses Scrypt. The latter is much more scalable and allows for faster, cheaper transactions.
Despite Bitcoin’s meteoric price rises in 2021, there has been much speculation as to whether it can remain viable as a genuine means of payment, especially due to its comparatively high transaction costs, slow block creation time and staggering environmental impact. As such, many crypto pundits have speculated that similar coins, such as Litecoin or Dogecoin, could provide more scalable payments solutions.
Much of Bitcoin’s dominance has simply been a result of its having been the first cryptocurrency. It, therefore, stands to reason that in the age of the altcoin, one of the industry’s first viable alternatives to Bitcoin will enjoy similar success.
2. Litecoin is a viable payment method
As we’ve touched upon, Litecoin is a much better option for small scale peer-to-peer payments than Bitcoin. Much of this is due to the fact that the Litecoin blockchain offers much faster transaction speeds - two and a half minutes compared to ten minutes managed by Bitcoin.
For this reason, there are thousands of businesses around the world that accept Litecoin as a payment method. PayPal - the world’s biggest e-payments platform - accepts LTC, which in turn opens up numerous opportunities for consumers to spend the cryptocurrency. In addition to this, plenty of web services also accept payment in Litecoin, including Travala, eGifter and CryptoGames.
At the time of writing, Litecoin was commonly used to pay for goods in the US and in Europe, with a growing number of wallets opening across Asia as well - with LTC being particularly popular in India and Indonesia. In addition, Turkey seems to have adopted Litecoin as a preferred crypto payment method.
One of the reasons that LTC has gained momentum in the US is its strategic sponsorship deals with highly visible organisations. For example, Litecoin is the official cryptocurrency of the Miami Dolphins NFL team and has previously sponsored UFC events and the Mammoth Film Festival.
It goes without saying that, if Litecoin continues to gather pace as a viable payment option for retail transactions, then it will hold its value and could well prove to be a smart investment in the mid to long term.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
3. Litecoin has banking credentials
The developers behind Litecoin have been proactive in making inroads into the world of traditional finance - something that many cryptocurrencies have so far failed to do.
In 2019, the nonprofit organisation behind LTC, the Litecoin Foundation, acquired 9.9% stake in Germany’s WEG bank, in a deal that was seen as the cryptocurrency’s first major step into the world of mainstream banking.
The deal was actually part of an arrangement made with a Swiss crypto-to-fiat payments startup, TokenPay, wherein the Litecoin Foundation would support the fledgling firm with marketing and technology services.
Following the deal, Charlie Lee commented that historically, crypto projects had experienced difficulties in working with traditional banks but the deal with WEG would allow the Litecoin foundation to “work from the inside”. The idea is that eventually, the partnership will allow for products like crypto debit cards and better rates of interest.
4. Litecoin has some impressive backing
Litecoin also has a certain prestige thanks to its backing from digital investment giant Grayscale. The firm has always been a backer of LTC, with the Grayscale Litecoin Trust being one of its biggest investment vehicles for the crypto market.
Naturally, Grayscale’s bullishness on Litecoin bodes well for anyone who has invested in the altcoin and the fact that the acquisition was balanced with the offloading of BTC suggests that the investment giant foresees change across the wider crypto space.
Of course, this by no means guarantees that LTC is going to double your money in 2023, but it certainly is a vote of confidence and if there are any institutional investors that know the cryptocurrency market, Grayscale is certainly one of them.
Read Also: Will Litecoin Make Me Rich in 10 Years?
5. Litecoin has a low token price
Bitcoin is currently trading at over $43,000 per token. Whilst BTC is broken down into Satoshis, ultimately an investor needs to lay out some serious funds if they want to own a significant holding of the Bitcoin supply. Whilst, in theory, this doesn’t affect returns as such - profit is measured in percentage after all - there is a certain psychological aspect at play.
By comparison, a whole Litecoin token is trading at around $134, meaning the average investor can acquire a much larger holding with a fairly small outlay. In addition to this, LTC can also be purchased in fractions, meaning it’s possible to add a small amount to your portfolio to see how the altcoin performs over time.
Of course, a lower token price also means that Litecoin remains more viable as a payment method. Bitcoin is, in reality, a means of storing value and even its smaller denominations are too valuable to be used in everyday transactions. LTC’s lower token price could be its strongest asset against its predecessor.
What Are Analysts Predicting For Litecoin In The Coming Months?
We’ve now seen five good reasons to expect growth from Litecoin in the coming months. However, it’s also worth checking these against predictions from some leading crypto analysts to build an impression of what we might expect from Litecoin in 2023.
At the time of writing, LTC was trading at $160. According to TradingBeasts, the token will rise steadily for the remainder of 2023, reaching a potential high of $150 by December. Whilst this won’t double your investment, it is a realistic forecast and would offer a pretty significant return in a short space of time.
Elsewhere, WalletInspector is a little more bullish on LTC. Its technical analysis has the coin hitting an average trading price of around $282 by the end of December, representing growth of over 109%.
DigitalCoinPrice is also expecting Litecoin to increase in value in 2023. Before the end of the year, Litecoin is expected to reach a trading price of $174 per token.
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Expert Opinions On Litecoin
With many analysts predicting growth for Litecoin, it seems that the altcoin could be a very worthy addition to any crypto investment portfolio. The altcoin also has plenty of support for industry insiders.
For example, Dan Gambardello, founder of Crypto Capital Venture, has long been a supporter of LTC. He has gone on record saying that he believes Litecoin will have a “massive run to $1,000+” in the long-term.
Elsewhere Crypto Research Report Group has put together an in-depth report on LTC’s future potential and concluded that the altcoin is on target to reach $1,200 by 2025, and $2,250 by 2030.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Conclusion - Is Litecoin A Good Investment In 2023?
Will Litecoin double your money in 2023? It seems unlikely but we've seen bigger surprises from the crypto market. However, Litecoin certainly has the potential to double in value - its all-time high being $412.
Cryptocurrency always carries a certain degree of risk, but it’s fair to say that Litecoin has stood the test of time and despite not quite holding onto its position in the top 25 cryptocurrencies by market cap, it is always one of the first tokens mentioned when people talk about crypto investment.
It is an exciting time for the crypto market in general and 2021 saw new challenges and developments which could dramatically change the landscape of digital currency. The biggest thing for Litecoin investors to look out for will be how LTC’s price tracks with Bitcoin’s - and particularly if there is any major divergence.
Ultimately, we think Litecoin could be a worthy addition to any crypto portfolio, but it should probably be seen as a medium to high-risk asset and should be balanced by diversification.
Read More: 15 Reasons Why You Should Invest in Litecoin
FAQ
Does Litecoin have a future?
Many people were ready to write Litecoin off back in 2015 and 2016, but the altcoin proved its resilience and has since gone on to have some impressive price runs. There were a few critics in 2020 as well, who were also silenced when LTC went stratospheric in the first half of 2021. Long story short: Litecoin has proven more than once that it is here to stay.
Will Litecoin double my money in 2023?
Litecoin may not double your investment in 2023, but it could nonetheless yield significant returns, with some analysts predicting growth of 70% by December. It’s also worth noting that LTC is expected to perform well going into 2023, so those investing now may well see their money doubled in 2023.
How do I invest in Litecoin?
If you want to invest in cryptocurrency - whether it be Litecoin or any other token - then you’ll need to find a reputable exchange that can give you access to the market. We usually recommend eToro, as it is one of the highest-rated exchanges on the market and lists all the major cryptocurrencies.
Is Litecoin better than Bitcoin?
Litecoin has always been seen as the silver to Bitcoin’s gold and this is certainly reflected in each tokens price. However, LTC transactions are faster and cheaper, which means that the altcoin could end up being much more viable as a payment option for everyday transactions. On paper at least, there’s certainly an argument that LTC is the superior crypto.
What is Litecoin used for?
Litecoin is a peer to peer payment system - and that’s more or less it. It can be used to pay for goods and services online or held onto as an investment asset. LTC is one of the earlier cryptos on the market, so whilst it does not have the smart capabilities of Ethereum or Cardano, it has certainly stood the test of time and continued to be a relevant force in the industry.