Litecoin (LTC), a nine-year cryptocurrency whose price returns have chronically underperformed the largest and best-known bitcoin in recent years, is making a leap to a new star: privacy.
The blockchain industry subsector of “privacy coins” – cryptocurrencies with embedded technology that protects identifying information from public view – is becoming one of the hottest purchases this year. One of the largest privacy coins, zcash (ZEC), which offers “secure transaction” functionality, has nearly tripled so far in 2020, while monero (XMR), which uses a technique called “ring signatures” to obscure data of sender and recipient, is doubled.
Litecoin founder Charlie Lee told CoinDesk in an interview that the project is now looking to adopt key privacy-enhancing features, which he considers increasingly attractive to cryptocurrency users. The improvements are already being tested and an upgrade to the main network is planned for next year. If the effort is successful, it could inject a jolt of enthusiasm into a project that has suffered from a lack of momentum in digital asset markets. Litecoin is up 21% this year after a 38% gain in 2019, which pales compared to bitcoin’s year-to-date 59% gain and a 94% increase last year.
“I want to make sure that users don’t have to worry about giving up their financial privacy by using litecoin,” Lee said. “Even if you’re not doing anything illegal, you don’t want people to know how much money you have or what your salary is.” – Daniel Cawrey
Learn more: In an effort to differentiate itself, Litecoin is moving towards privacy
Bitcoin is hovering around $ 11,400 at press time, having snapped a six-day winning trend with a 1% drop on Tuesday.
Notably, the cryptocurrency formed an “inside day” candle on Tuesday, breaking the immediate bullish technical outlook. Inner day candle occurs when the cryptocurrency is trading well within the previous day’s high and low and indicates a consolidation.
Therefore, Tuesday’s high of $ 11,567 is now the level to beat for the bulls. A break above that level would signal a continuation of the recent rally and open the door to resistances above $ 12,000.
Alternatively, accepting below Tuesday’s low of $ 11,314 would imply a bearish reversal and could produce deeper dips.
That said, on-chain metrics favor an ongoing rally. The seven-day average bitcoin hashrate or measure of processing power dedicated to the blockchain rose to a record high of 144.29 exa hashes per second (quintillion hashes per second) on Tuesday, surpassing the previous peak of 143.19 EH. / s observed on September 18, according to data source Glassnode.
It indicates high confidence of miners in the price outlook of the cryptocurrency. Miners operate largely in cash and liquidate their BTC holdings to fund the operations. As such, they are likely to devote more resources to the computer-intensive mining process if they are bullish on the price.
Read more: Bitcoin stable above $ 11,400 as Hashrate hits a new high
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