The year of 2018 had been terrible for Litecoin. When the value of the coin started depreciating at the beginning of the year, a lot of people thought it was just a normal retracement because of the massive leap that the digital currency had made at the end of last year.
This time around, the trendline of the bears went too far. Sometimes, the digital currency acts like it wants to continue a bull run only to end up making a significant decline than before. This has made coin holders to lose interest in the coin and opted to sell the coin at a loss.
Nevertheless, considering the factors that are presently at play, Litecoin could be heading for better days. Due to some underlying developments, the value of Litecoin (LTC) is expected to increase again anytime soon. Here are some factors that could cause this to happen.
Litecoin Has Become Oversold
At the moment, Litecoin (LTC) is in the oversold territory. The value of Litecoin declined drastically, and there are so much panic selling and market overreaction. Almost all LTC holders are considering selling. In the financial market, when an asset goes deep into the oversold zone, the value of the asset is expected to rebound in no time.
The oversold area only lusts for a short period before the market breaks and the forces of the bears are overcome by the forces of the bulls. This is what will soon happen to Litecoin. Nevertheless, the rebound may not take the value of LTC back to its original level, but it will start moving up gradually.
NYDFS gives itBit the Green Light to List Litecoin (LTC)
itBit is one of the digital currency trading platforms that are regulated by the NYDFS to trade digital currencies in the U.S. Being an exchange that is regulated, it’s expected to attract lots of investors. The recent decision of itBit and the fact that the NYDFS has given them a green light to list Litecoin (LTC) is expected to correct the value of LTC higher.
Why Richards Believes in Cryptocurrency
Franklyn Richards, the director of Litecoin (LTC) foundation who has been working tirelessly to keep ensure that the Litecoin (LTC) banner flies high, said cryptocurrency would be institutionalized eventually. He made this comments when speaking about Litecoin (LTC) to CCN.
Richards sees crypto as the next big thing in the finance industry. Citing that we are just at the beginning of electronic currency. He is looking forward to building the future of money (crypto). When asked about how he got involved with Litecoin’s founder Richards replied that he reached out to the ex-Google employee on Reddit. According to him, Litecoin (LTC) was launched because Bitcoin (BTC) was expensive.
At the time Litecoin was launched Bitcoin (BTC) was just crossing over the $100 USD barrier. The was also optimistic that because Bitcoin is better for institutions to use, many users will adopt it unknowingly which Richards believes will hugely shape the price of the token.
Digital Currencies will be Absorbed by Centralized Authorities
When asked about his views regarding the debate that digital assets will be taken over by centralized entities, Richards says:
“We have to face the facts. I believe centralized institutions have a good benefit to derive from adopting crypto. They will ultimately pass these benefits to their users. It’s capitalism. If I succeed in offering my users something much better and cheaper, I will be able to attract more users. We are currently seeing this institutional adoption now.”
“Ice Markets, the New York Stock Exchange parent company, recently launched Bakkt. CME is also launching institutional trading and the security of digital assets. Gemini is also getting involved. People now realize that it does not matter whether the user knows anything about the technology. We do not know how banks or cards work, but we do know that they render us a service. If institutions can provide better service through a decentralized currency including Litecoin (LTC) or Bitcoin (BTC), it will be the preferred option for users. Which is why it will work.”
What are Litecoin’s Advantages?
According to Richards:
“Litecoin (LTC) has lower fees and quicker block time.” “Let’s be honest here, LTC may offer faster block times, but these means that the blocks will be less secure because it will take up to 2.5 minutes to reverse a block rather than 10 minutes. Litecoin (LTC) is very strong. It is more of a complement of Bitcoin (BTC) rather than a competitor. Yes. Bitcoin (BTC) will stay at number one for a long time, but both tokens will strengthen each other. Litecoin does not compete, it benefits, especially with atomic swaps and the Lightning Network.”
He adds that:
“Litecoin has a large amount of liquidity which is very important. Currently, there isn’t any other coin that compares to LTC in liquidity in the market. Ethereum (ETH) is fine, but it isn’t money. It is an app platform that isn’t really decentralized because users are printing tokens on the platform. Its blockchain has moved from a few gigabytes to a terabyte. Bitcoin (BTC) and Litecoin (LTC) do one thing well, and that thing is money. This money let’s either token complement one another.”
According to CCN; here are 10 strong fundamentals underlying Bitcoin at the time of its current ascent:
- MAJOR ALTCOINS, ETHEREUM, EOS ARE ON PARADE TOO. IT’S NOT ONLY A 2019 BITCOIN BULL RUN.
A number of major-cap cryptocurrencies have made significant gains. Source: Shutterstock
The market value of Ethereum rival EOS is leading the charge with a 25% increase in its market capitalization over just two days. Ethereum (ETH) grew by 10% over the same short time period while Ripple (XRP) posted similar gains.
The crypto space is as legendary as other high stakes, pioneering enterprises throughout history for conflict and drama. There are some who believe that altcoins and Bitcoin compete for users and capital. But these products are economic complements, not substitutes.
The cryptocurrency market overall is still so much smaller than the amount of money flowing through the hallowed (laugh out loud) halls of institutional financiers.
It’s smaller yet than the global markets for every other imaginable kind of valued goods that people buy instead of financial instruments to make payments, save, or invest.
Bitcoin and Ethereum aren’t in competition with each other. They’re in competition with PayPal, Bank of America, stocks, bonds, precious metals, real estate, and $5 cups of coffee.
As the historical trends have shown, the success of one cryptocurrency generates interest and demand for other cryptos as well.
- IF IT HAPPENS THE 2019 BITCOIN BULL RUN MIGHT BE INSTITUTIONAL FINANCE’S FAULT
2019 is looking like the year of institutional investors entering the cryptocurrency sector. Source: Shutterstock
Joseph Young @iamjosephyoung
Crypto made more progress in institutionalization in 12 months than in previous 9 years.
- $40M from 2 public pension funds in the U.S.
- $237 million invested by institutions through Grayscale
- Fidelity and ICE building infrastructure
- Major exchanges operating as custodians
“First they ignore you, then they laugh at you, then they pathetically try to copy you, then they throw up their hands and starting hodling bitcoin, then you win.” -Not Gandhi
Coin watchers have long said crypto has arrived when institutional finance begins to make serious moves into the space.
Big finance will open the floodgates of capitalization, institutional expertise, and the aura of officialdom, infusing the crypto industry with so much value, that many expect its market cap will dwarf its previous peak at the height of the bubble in 2017.
Well, 2019 is the year institutional finance starts hodling as much BTC as it can get.
NASDAQ Adds Bitcoin and Ethereum Indexes
On February 11 NASDAQ, the second largest stock exchange in the world, launched indexes for Bitcoin and Ethereum, showing just how seriously Wall Street is taking “digital assets.”
This means NASDAQ is probably moving forward quickly with an option to trade Bitcoin futures, a new financial product it teased throughout 2018.
Intercontinental Exchange, the company that owns the New York Stock Exchange announced last year it would be working with Microsoft among other major partners to create a global cryptocurrency exchange.
At the end of December ICE announced it had raised $182 million for Bakkt from a prominent group of venture capitalists and investors.
Big banking is so keen to get into the cryptocurrency game and expects such great things out of crypto that earlier this month the NYSE Chairman and Founder and CEO of ICE, Jeff Sprecher calls Bakkt his company’s moonshot bet.
Fidelity Digital Assets
Last October, Fidelity Investments, the Boston-based financial services company with $7.2 trillion worth of assets under management for 27 million clients, announced it would be launching a Bitcoin custody service called Fidelity Digital Assets.
At the end of January, Fidelity caused a stir when it announced a March launch of Fidelity Digital Assets. That day news leaked that the cold storage function of Fidelity’s new Bitcoin custody service is already live, with some assets currently under management.
JP Morgan Coin
Although its billionaire CEO, Jamie Dimon has had little but scorn for Bitcoin over the last couple years, JP Morgan lent Bitcoin some massive credibility when it launched JPM coin this month (which is definitely a fake cryptocurrency).
Imitation is the sincerest form of flattery. And as they say, if you can’t beat ’em, join ’em. By attempting to join the cryptocurrency revolution, JP Morgan tacitly admitted it can’t beat ’em.
- EXCHANGES AND WALLET SERVICES HAVE DEVELOPED UNPRECEDENTED CRYPTO MARKET LIQUIDITY TO FRUITION
Binance crypto exchange bitcoin
Cryptocurrency exchanges like Binance and mainstream financial apps like Square’s Cash have made it easier than ever to acquire crypto. Source: Shutterstock
Not long ago it wasn’t as easy to purchase cryptocurrencies as it is today. The exchanges and wallet custody startups have been hard at work to change that and the results are showing.
Square Cash App Lets Users Buy and Sell Bitcoin
Earlier this month Jack Dorsey revealed that Square Cash (also known as Cash App), “one of the most widely utilized mobile payment applications in the U.S. market, became the 2nd most popular free mobile application on the Apple App Store.”
A little over a year ago in November 2017 Square- er- Cash App (Which is it again? Doesn’t matter.) added Bitcoin buying and selling, and a wallet custody service.
(So Dorsey can keep users’ bitcoin in his walled off but vast ecosystem, and in exchange make it very easy for its 7 million active users to buy and sell Bitcoin and swap it for Dollars.)
It’s a way someone in Jack’s position with his successful Cash App can get his hands moving a lot of bitcoin, and it appears he’s been well rewarded for investing in Bitcoin.
13 months after adding Bitcoin to his payment platform, even as the U.S. equities market faced a broad correction, Square Cash is valued at $29 billion, nearly twice as much.
Binance Allows Users to Buy and Sell Cryptocoin with Credit Cards
The world’s largest crypto exchange, Binance, is flush with massive profits from its operations in 2018, estimated from buybacks of its BNB token to total $446 million.
In January Binance, the most voluminous crypto trading exchange on the planet announced it would allow users to buy crypto with credit cards using Visa and MasterCard.
CZ Binance ✔ @cz_binance
Not competition, just more choices. And growing the industry together. https://bravenewcoin.com/insights/binance-vs-coinbase-competition-escalates-as-binance-enables-card-payments …
Binance Vs Coinbase: Competition escalates as Binance enables card payments » Brave New Coin
The rivalry between Binance and Coinbase has escalated with the announcement that Binance is accepting credit card payments — the latest encroachment of the giant crypto exchanges on each other’s… bravenewcoin.com
- SECOND LAYER TECHNOLOGIES ARE CREATING MORE CHANNELS FOR A BITCOIN BULL RUN TO FLOW THROUGH
bitcoin lightning network
Development of the Bitcoin Lightning Network continues to gather pace Source: Node Map
One drawback of Bitcoin is congestion on the network. But that’s a feature of its insistently deflationary monetary design. It makes Bitcoin more precious, harder specie.
Still, the overwhelming demand for greater liquidity in the use of Bitcoin as an instrument for daily small cash payments has driven the development of many tributary channels of liquidity carefully crafted by developers out of second layer technologies.
A Lightning Network startup announced just this week that it will now accept Bitcoin payments nearly instantly (30 seconds) over the Lightning Network for mega ultra super low fees, and deliver you a Domino’s pizza in 30 mins.
- CURRENCY CRISES WILL HAVE PLAYED NO SMALL PART IN A 2019 BITCOIN BULL RUN
There is a marked increase in peer-to-peer bitcoin trading in hyperinflation-struck Venezuela. Source: Shutterstock
A country that has been absolutely wrecked to its foundation by Chavismo communism, Venezuela is facing political upheaval and a currency crisis that has stricken the South American country with disastrous hyperinflation.
That’s led to an insatiable demand for Bitcoin in Venezuela.
- 2019 BITCOIN BULL RUNNERS HAVE MORE BITCOIN ATMS THAN EVER TO BUY BITCOIN AND COUNTING
The year is 2019 and a Bitcoin ATM may be closer than ever before. | Source: Shutterstock
On top of increased liquidity through more points of sale for cryptocurrency on exchanges like Binance and custodial wallet and payment services like Cash App, Bitcoin ATMs are making it easier to buy Bitcoin than ever before.
Chicago just got 30 new Bitcoin ATMs, bringing the Windy City’ total number of automatic Bitcoin tellers to 100. Philadelphia as another city with about 100 Bitcoin ATMs at this point.
- MORE GOVERNMENTS ARE GETTING INTO CRYPTO IN 2019
paraguay bitcoin mining crypto exchange
The Paraguayan government is turning to its abundant hydroelectric energy to mine bitcoin. Source: Shutterstock
Venezuela Regulates Cryptocurrency
It’s very fortunate for the Venezuelan people that their repressive government isn’t moving to block their exit from its ruined Bolivar, something governments facing hyperinflation have done in the past. Venezuela is issuing regulations and fees instead.
Paraguay Makes Big Bet on Cryptocurrency
A major hub of hydroelectric renewable energy, Paraguay’s government completed talks in November with the South Korea-based Blockchain Technology Foundation to turn its cheap energy into bitcoin.
The government of Paraguay and the Blockchain Technology Foundation have ambitions to build the world’s largest cryptocurrency mining farm.’
Their end game is to then leverage the influence and command of digital financial assets that would bring to build the world’s biggest crypto exchange on top of it.
- MAJOR RETAILERS ARE STAMPEDING OFF TO A 2019 BITCOIN BULL RUN
Japanese conglomerate Raukuten has already acquired a cryptocurrency exchange. Source: Shutterstock
Rakuten, “the Amazon of Japan” announced in a February 12 earnings report that it will be launching:
“A major update for its mobile app platform Rakuten Pay, which is set to release later next month with the potential inclusion of cryptocurrency payments in conjunction with fiat.”
Last August, Rakuten acquired a cryptocurrency exchanged, Everybody’s Bitcoin for $2.4 million, a vertical expansion that put Rakuten into position to make this month’s announcement. Hopefully, Amazon‘s watching.
- SILICON VALLEY IS IN A 2019 BITCOIN BULL RUN FOR SURE. THESE BULLS WERE RUNNING IN 2018 TOO.
Silicon Valley has continued to be a wellspring of highly talented tech business superstars who are quite enthusiastic about Bitcoin’s prospects in the near future and have fueled the industry’s growth with development and capitalization.
After winning $65 million from their lawsuit with Facebook, the Winklevoss Brothers invested $11 million of their remuneration into Bitcoin when one bitcoin could be had for USD $120.
Despite setbacks, they are also one of the many teams working with the SEC to launch a Bitcoin ETF (exchange-traded fund) in the near future.
As noted above, Twitter and Square Cash App Founder and CEO Jack Dorsey have been an intransigent Bitcoin bull all throughout the entire 2018 bear market.
The legendary Silicon Valley venture capitalist Tim Draper who has racked up a personal net worth of $1 billion to his credit in terms of his ability to pick tech winners, believes Bitcoin’s price will reach $250,000.
Peter Thiel’s small team of visionary developers and business people, who included Elon Musk after a merger, were trying to create something like Bitcoin, an alternative to the U.S. Dollar, when they created billion dollar baby, PayPal.
So many of them went on to found more billion dollar babies like Tesla, SpaceX, YouTube, LinkedIn, Yelp, and Palantir Technologies (Peter Thiel’s billion-dollar data analytics company, with an IPO coming up in 2019), that people call them the PayPal mafia.
Thiel is a major Bitcoin bull and is hodling. In January of 2018, Thiel’s Founders Fund bought between USD $15 million and $20 million worth of bitcoin.
Vitalik Buterin, who invented Ethereum, went to work on what is now the world’s second most valuable cryptocurrency (after recently overtaking XRP) after receiving the Thiel Fellowship in the amount of $100,000.
- LOWER BITCOIN VOLATILITY COULD SUPPORT A 2019 BITCOIN BULL RUN
At Forbes, Charles Bovaird asks, “Has Bitcoin Entered A New Normal?”
One of the most resounding criticisms of Bitcoin as a financial instrument for small daily cash transactions is that its price is too volatile to serve this function. This is also why many pundits have said it’s not “a real currency” or “not real money.”
Although the trade in Bitcoin has been a bumpy ride because of the waves of speculation that have pushed nascent open source decentralized payments and banking platform to spectacular highs, its price is stabilizing.
The volatility of Bitcoin expressed as the average of the standard deviation of daily returns on bitcoin has been decreasing over the currency’s first decade of existence.