Introductory First Thoughts
As Litecoin presently is the number 24 cryptocurrency ranked by market capitalization, many believe this alone demonstrates that investing in Litecoin is worth the effort. However, this is not the case.
In this subsection of the Leo Finance Litecoin Coin Guide, let's investigate many of the factors, both positive and negative, that you should be aware of in making an investment decision on Litecoin. Following the narrative, we will briefly look at Litecoin's current tokenomics as well as several expert future price predictions.
Please keep in mind that this article should be only your first step in researching Litecoin when considering investing. The process of investment decision making requires diligent research and to accomplish this, several differing opinions should be sought out and considered.
Should I buy Litecoin (LTC) in 2022? - The Narrative
Many investors insist that Litecoin, in the long term, will demonstrate significant price growth. This perceived price growth potential appears to find support in the available data, to wit: if LTC continues to display higher lows within the hourly charts, a protracted and continued bull run may develop.
Given the fact that Litecoin has a capped maximum supply of 84,000,000 LTC, the resultant scarcity operates to insulate it from inflation and depreciation. Viewed in this light, Litecoin may be seen as a safe harbor store of value for long-term investors, especially in turbulent market times.
When deciding on making investments in cryptocurrency, it must be stressed that the crypto markets are inherently very risky. In no way does this mean that investing in Litecoin (or any other cryptocurrency) should be avoided at all costs, but rather it stresses the need for a serious risk/reward analysis to take place prior to investing.
Many tend to forget about the stability and gradual growth exhibited by Litecoin. As compared to many other cryptocurrencies, Litecoin's reward to risk ratio is greater due to this gradual growth pattern. Other coins exhibit parabolic price increases but are also showing failures in just as short a period. The massive losses equate to the massive gains putting investors at high risk. The probably of experiencing massive loss in Litecoin is mitigated by virtue of its slow growth pattern.
Many crypto users have turned to Litecoin as their favorite transactional vehicle. This is a direct result of the speedy transaction times present on the Litecoin platform coupled with the low transaction fees charged. The more users attracted to a cryptocurrency, the greater the gains by that currency in terms of value.
Litecoin has some serious partners. Overstock.com has been accepting Litecoin as payment for quite some time and UFC has named Litecoin its official cryptocurrency. Another important Litecoin partnership exists with gaming giant Atari. Through this partnership, Litecoin has cemented its involvement in the growth to be created by the use of blockchain technology in the gaming industry. These types of partnerships spurn investor confidences in the project which results in increased investor activity.
Litecoin is one of only a couple digital assets that are being integrated into the systems of financial institutions. These financial institutions have recognized Litecoin's potential as a mode of payment, and as more institutions join in, the value of Litecoin will increase.
In a negative light, there are some who believe that Litecoin's future is not that rosy. They maintain: that Litecoin has lost its relevance and has found it difficult to compete with the functionality of newer coins such as Polkadot and Chainlink; that even though Litecoin had a good 2021 recording a 70% gain, it has been unable to break its prior all time highs as both Bitcoin and Ethereum did; and, the relative dearth of information added to GitHub by the Litecoin development team compared to other projects. In 2021, Bitcoin had 48,061 repositories, Ethereum had 37,434 repositories, and Litecoin had only 38 - what this suggests is that there is truly no much going on with the Litecoin project at all.
Litecoin's Tokenomics
Per CoinMarketCap, at the time of the writing of this article (January 10, 2022 at 16:35 EDT) there is a circulating supply of 69,384,494.49 LTC. With the current price of $126.64 the market capitalization of Litecoin (LTC) is $8,786,619,057. There is a total supply of 84,000,000 coins authorized yielding a fully diluted market capitalization of $10,637,838,802. Presently, Litecoin (LTC) is ranked No. 24 by CoinMarketCap.
A review of the 1 year price chart for Litecoin clearly demonstrates its volatile price nature and sluggish growth.
Several Price Predictions for Litecoin
WalletInvestor has prepared a graph depicting its Litecoin price prediction for 2022 and 2023 as follows:
CoinPriceForecast has prepared a chart depicting its Litecoin price predictions for the years end of 2022 through 2033 as follows:
And finally, DigitalCoinPrice has prepared a bar chart depiciting its Litcoin price predictions for the years 2022 through 2029 as follows:
Please keep in mind that while these price predictions paint a rosy future for Litecoin (LTC) as an investment, they are just that - predictions. No one has a crystal ball that can predict and guarantee future price performance and potential returns. As such, as a potential investor, you may take the prediction for what it is, as the same is no guarantee of future price performance of Litecoin (LTC) due to the volatility of the cryptocurrency markets.
Some Final Thoughts on Investing in Litecoin (LTC)
This subsection has provided you, the potential investor in Litecoin (LTC), with the key elements to consider in reaching a final decision on this token. In reaching a final investment decision many differing opinions should be sought out. Reliance on one source is highly discouraged.
Please remember, this subsection of the Leo Finance Litecoin Coin Guide is merely a starting point and should not be deemed a substitute for doing your own diligent research.
It is a given that every individual investor possesses a different present financial circumstance, tolerance for risk, and investment strategy. These must be weighed in light of the factors and information above provided in finalizing any investment decision. Accordingly you as the potential investor must make the final investment decision that is appropriate for your individual circumstances and in your best interests.
And as always, never invest more than you can afford to lose. Good luck!