If you are looking for a Bitcoin alternative, the huge choice of cryptocurrencies might overwhelm you pretty quickly. With more than 20,000 cryptos to choose from, it can be quite the task to find the rare gem that can hold a candle to the original cryptocurrency.
Every new crypto is trying to one-up Bitcoin by bringing something new to the table. This has been the case ever since alternative cryptocurrencies have existed. And the first one among them was Litecoin, which came onto the market way back in 2011, what is now considered the dawn of crypto.
So, can Litecoin still be considered a sound Bitcoin alternative? Does it bring enough advantages and dissimilarities for you to consider having it in your portfolio? We will go over Litecoin’s basics and recent developments in its blockchain. We also take a look at the Litecoin Foundation’s plans and what they can mean for the price of LTC.
Litecoin: Project Background
To put it simply, Litecoin aptly carries its name. It’s supposed to be a lighter version of Bitcoin, providing faster transactions and relying on a simpler consensus algorithm called Scrypt. Hence, the name Litecoin.
Charlie Lee created Litecoin in 2011 to alleviate some of the issues that Bitcoin users were facing at the time, mainly slow transaction speeds and increasing transaction fees. To achieve this, the developers forked Bitcoin’s code to produce a cryptocurrency that produces blocks four times faster than the original crypto. Users actively started converting their BTC to LTC to see what the new coin was all about.
This also meant that the maximum supply of Litecoin should be quadrupled, which is why there are 84 million Litecoin versus Bitcoin’s 21 million. Consequently, Litecoin was always meant to supplement Bitcoin and provide an alternative for quick, daily payments and merchant adoption. These features have made it extremely popular with a community that believes that crypto is to be used as a currency instead of hoarded like gold.
Recent Developments
Since Litecoin has been around for more than a decade, you might be wondering what the team behind it could still be working on. Well, in 2019, the Litecoin Foundation announced the integration of the Mimblewimble protocol, which was supposed to allow LTC to have opt-in privacy options similar to Zcash.
After more than two years of development, the MWEB protocol was implemented in Litecoin core, adding additional layers of privacy for LTC users. Moreover, this new protocol allowed Litecoin to achieve new levels of scalability. It is now capable to accommodate mass usage of its payment network.
However, these new privacy features caused some exchanges to delist Litecoin, in fear that it was impeding regulative measures regarding privacy coins. Right after, prices crashed quite spectacularly and haven’t recovered ever since.
Plans for Future Growth
The Litecoin Foundation is relentlessly working on propagating LTC as a payment network around the globe. They are implementing it into the lightning network. It will provide infinite scalability and near-negligible transaction fees.
Since Litecoin has been a pioneer in the industry, it still has quite a strong community of users and active wallets. It remains one of the most used cryptocurrencies for digital payments and remittances. This pioneering status has allowed experts in the field to paint a bullish picture for LTC in the long term.
Digitalcoinprice.com, for example, gives a bullish forecast of $122 per LTC by 2025. Considering the current price of around $60, that’s an x2 return in less than three years. For 2030, on the predicted other hand, the growth is even more significant, with a price of $278.53 per coin.
Priceprediction.net are much more enthusiastic, predicting +350% growth by 2025, and a price of $270 per coin. For 2030, their forecast shows a four-digit Litecoin, with a price of $1,693.64 per LTC.
So Is Litecoin Still in the Running?
Considering that Litecoin has been struggling to stay relevant in the last years doesn’t change the fact that the coin has managed to remain in the top 20 for more than 10 years. From XRP to BTC, there are a lot of coins considered old-timers, but only a few can boast the same stability.
This pioneering acclaim might falter over time. However, the team is doing its best to add new features to LTC and make it more appealing to investors.
Its privacy features might become a huge advantage in the long run. Regulators are increasingly impeding on privacy, as we saw recently through the sanctioning of crypto mixer Tornado Cash.
Talha Ali is your tech generalist, covering a wide spectrum of topics within the ever-evolving world of technology. With a curiosity for the latest innovations, industry trends, and breakthroughs. Whether it’s hardware, software, emerging technologies, or the intersection of tech with daily life, Talha’s articles provide readers with a well-rounded perspective on the dynamic landscape of the tech industry.