Cryptocurrency markets are subdued at the moment and this is the best time to hunt for digital coins that hold great potential in the coming years. Although there are many lesser-known tokens that could provide astronomical returns to investors in the coming years, we want to stick to one that we believe would provide superlative returns sans the high volatility associated with other well-known cryptocurrencies.
Litecoin is one such currency, which has been in the news since last month when LTC creator Charlie Lee donated all his holdings, citing conflict of interest. It has steadily maintained its $200.00+ level and has been gaining since, given the negative news surrounding other cryptocurrencies. It has climbed up the ladder from being the eighth most valuable digital currency to the sixth within a week. Now the next question is, what is the Litecoin (LTC) price forecast for January 2018?
There is a lot of optimism surrounding Litecoin among crypto enthusiasts and the reasons are not hard to fathom. Litecoin is a project with great utility for people who want to transfer small amounts of money or want to spend on inexpensive things, as they have to pay very low fees compared to Bitcoin. LTC has been developed as a lighter version of Bitcoin that offers quicker and cheaper transactions.
Litecoin is one of the most promising altcoins available today and is gradually inching upward in terms of popularity as well as price.
How High Can Litecoin Go in January 2018?
We believe that LTC is likely to go higher and be in the range of $280.00-$300.00 by the end of January 2018. The following are the reasons why the future looks good for LTC and why we are bullish about the Litecoin price forecast for January 2018.
Charlie Lee created Litecoin in 2011 and introduced a few important changes that could further improve upon Bitcoin. Lee wanted LTC to be the “silver to Bitcoin’s gold.” He saw Litecoin as complementing rather than competing with Bitcoin.
And this is where Litecoin has the edge. Bitcoin is more suited for big transactions where there’s a higher need for security. LTC is better suited for smaller transactions where speed and processing fees matter more.
To achieve this, Litecoin’s block time was reduced by 75% to 2.5 minutes compared to Bitcoin’s 10 minutes. Block time means the time required to verify transactions. Hence, a longer block time would lead to more confidence in the validity of transactions.
However, for smaller transactions, a longer block time could actually be a hindrance and even be undesirable. So because a high verification time is not required for small-scale transactions, LTC has reduced its block time, resulting in much faster transactions.
Bitcoin has been struggling with its network congestion woes as well as higher transaction fees. And the community plans to bring about upgrades that would help to take care of these issues.
However, Lee has found the utility for LTC for common people by focusing on small, day-to-day transactions. If more people use LTC for their daily small-scale transactions, it would become more popular, boosting the LTC price. As the block time is faster, the network is able to handle more transactions. And this comes with lower transaction fees.
On the other hand, Bitcoin fees have been going up astronomically, which is not going down well with the users. And a high transaction fee does not make any sense for the purchase of something that’s just worth a few dollars.
Innovative Features Boosting LTC Price Forecast
There are reports of Bitcoin adopting “SegWit” and the “Lightning Network.” With the help of the Lightning Network, small transactions can be bundled together into larger transactions, which can be submitted to the blockchain together. This would result in lower fees and a faster network. SegWit is an upgrade that would allow more information to be stored in a block of verified transactions. Both are important to make the Bitcoin network better and more attractive.
In a publication on SegWit and Lightning Networks, Charlie Lee explained his vision for Litecoin and Bitcoin, where they will work together in the future to solve the world’s transaction needs. He is extremely optimistic that the convenience and low fees of the Litecoin network will keep attracting users once both the digital currencies are on the Lightning Network. (Source: “My Vision For SegWit and Lightning Networks On Litecoin and Bitcoin,” Segwit, January 6, 2017.)
With these changes, LTC adoption is likely to keep on increasing, which will boost the LTC price forecast.
There is one catch, though. These innovative features would help the Bitcoin network become better, meaning Litecoin may have to work harder to remain competitive. The Litecoin community has a great development team and all eyes would be on what they do to make LTC better than the other altcoins.
Given the above reasons and the fact that more exchanges may allow LTC trading in the coming days, the prospects are upbeat for the $280.00-$300.00 range for Litecoin price forecast by the end of January 2018.