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The year 2018 had been terrible for Litecoin. When the value of the currency began to devalue at the start of the year, many people thought it was just a normal retracement due to the great leap forward in the digital currency at the end of last year.
This time, the bear trend line has gone too far. At times, the digital currency behaves as if it wanted to continue an upward trend only to end with a significant drop compared to before. This led to the holders of coins losing interest in the currency and decided to sell the money at a loss.
However, considering the factors currently at stake, Litecoin may be looking for better days. Due to some underlying developments, the value of Litecoin (LTC) is expected to increase again at any time. Here are some factors that could cause this.
Litecoin has become oversold
At present, Litecoin (LTC) is located in the oversold territory. The value of Litecoin has decreased dramatically, and there are so many sales of panic and an excessive reaction to the market. Almost all LTC owners are thinking of selling. In the financial market, when a resource goes deep into the oversold zone, the value of the business is expected to decline rapidly.
The oversold area is only allowed for a short time before the market breaks and the bears 'forces are overwhelmed by the bulls' forces. This is what will soon happen to Litecoin. However, the rebound may not bring the value of LTC back to its original level, but it will start to rise gradually.
NYDFS gives Bit the Green Light to List Litecoin (LTC)
itBit is one of the digital currency exchange platforms regulated by the NYDFS for the trade of digital currencies in the United States. Being a regulated exchange, it is expected to attract many investors. The recent decision of It Bit and the fact that the NYDFS gave them a green light to list Litecoin (LTC) should correct the highest LTC value.
Because Richards believes in Criptovaluta
Franklyn Richards, director of the Litecoin Foundation (LTC), who worked tirelessly to ensure that the Litecoin banner (LTC) flown high, said that the cryptocurrency would eventually be institutionalized. He made this comment when he talks about Litecoin (LTC) to CCN.
Richards sees Crypto as the next big thing in the financial sector. Citing that we are only at the beginning of the electronic currency. He does not see the construction of the future of money (cryptography). When asked about how he was involved with the founder of Litecoin, Richards replied that he contacted the former 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 crossing the $ 100 USD barrier. Furthermore, he is optimistic that since Bitcoin is better for institutions, many users unknowingly adopt it, which according to Richards will greatly model the price of the token.
Digital currencies will be absorbed by centralized authorities
When asked about his views on the debate about whether digital resources will be taken over by centralized entities, Richards says:
"We must face the facts. I believe that centralized institutions have a good advantage deriving from the adoption of cryptography. In the end these benefits will pass to their users. It is capitalism. If I can offer my users something much better and cheaper, I will be able to attract more users. At the moment we are witnessing this institutional adoption."
"Ice Markets, the parent company of the New York Stock Exchange, recently launched Bakkt. CME is also launching institutional trading and the security of digital resources. Gemini is also involved. Now people realize that it does not matter if the user knows something about the technology. We do not know how banks or cards work, but we know that they make us a service. If institutions can provide better service through a decentralized currency that includes Litecoin (LTC) or Bitcoin (BTC), it will be the preferred option for users. This is why it will work".
What are the advantages of Litecoin?
According to Richards:
"Litecoin (LTC) has lower costs and faster blocking times. "" Let's be honest here, LTC can offer faster blocking times, but that means 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 a Bitcoin (BTC) complement than a competitor. Yes. Bitcoin (BTC) will remain at number one for a long time, but both tokens will reinforce each other. Litecoin does not compete, it benefits, especially with the atomic swaps and the Lightning network".
Adds that:
"Litecoin has a great deal of liquidity that is very important. Currently there are no other currencies that compare with LTC in liquidity in the market. Ethereum (ETH) is fine, but it's not money. It's an app platform that is not really decentralized because users are printing tokens on the platform. His blockchain has gone from a few gigabytes to a terabyte. Bitcoin (BTC) and Litecoin (LTC) do one thing well, and that thing is money. This money makes both tokens complement each other."
