Litecoin has always been overshadowed by its bigger brother Bitcoin. Litecoin was for a long time the second-largest cryptocurrency. However, many newer cryptocurrencies emerged, providing better use cases than Litecoin. That’s why Litecoin dragged and even became out of the top 20 cryptocurrencies by market cap. Today, as the crypto market continues to crash, Litecoin prices dip and aim to reach lower support areas. Is Litecoin dead? Should you buy Bitcoin instead of Litecoin? Let’s assess what the difference between Litecoin and Bitcoin is.
What is Litecoin?
Litecoin is a cryptocurrency that was founded in 2011 by Charlie Lee, a former Google programmer. It is regarded as one of the first leading successors to Bitcoin, as well as the first altcoin. It is a peer-to-peer (P2P) virtual currency with a worldwide network that allows for rapid, near-zero-cost payments. The coin is also built on a decentralized open-source worldwide payment network. Litecoin was formed from Bitcoin’s initial open-source code, according to analysts. When Lee first launched it, he called it Bitcoin Lite, and many people saw it as a response to Bitcoin. Despite the fact that the cryptocurrency is based on the Bitcoin prototype, it still has a lot of advantages as the leading digital asset.
How Does Litecoin Work?
Like Bitcoin, Litecoin is not issued by the government and is not regulated by any central bank or authority. The altcoin is also created by mining, a process that is synonymous with Bitcoin and a few other cryptocurrencies. Despite being viewed as a photocopy of Bitcoin, Litecoin developers have incorporated updates distinguishing the altcoins. For example, the Litecoin network generates a new block every 150 seconds.
The block is then verified by mining software and visible to all miners who want to see it. Once any miner verifies this block, it enters the chain and is recorded as a transaction. The first miner who successfully verifies a block is rewarded with 12.5 Litecoin. This reward goes lower with time. Despite being similar to Bitcoin’s, this procedure is not the same in totality. Litecoin, like other cryptocurrencies, also uses the proof-of-work (PoW) mechanism to secure its network.
Litecoin Price Prediction – Will Litecoin reach $40?
Unfortunately, the crypto market is currently crashing. Litecoin prices, like all the other cryptocurrencies, are also crashing and breaking through support areas. As Litecoin price broke the support around $62, we now anticipate Litecoin price to target the next support. This is around $40, which is why a further price loss of +/- 30% is conceivable. The price might find short-term support at the $40 support, however, it is unlikely to hold for a long time. Going forward, we expect LTC price to confirm the former $62 support as resistance by bouncing back to this level and being rejected. After that, the sell-off could also resume where the $40 support is broken. We continue to think that a low of around $14 will prevail in 2022.
Litecoin or Bitcoin? Which coin will perform better?
The Litecoin/Bitcoin pair isn’t really looking any better than the USD pair. Instead, we would rate this even worse. The price recently broke a trend line, which slowed down the price drop somewhat. Now that this trendline has been broken, we expect Litecoin price to fall even faster and deeper than before. Unfortunately, support cannot be drawn in because we have no historical data. However, one can choose the psychological level of 0.001 BTC as the first target.
