Litecoin explained – Technical analysis & price prediction for October 2017

Litecoin explained - Technical analysis & price prediction for October 2017



welcome to another episode of crypto right the show that takes a magical mystery out of crypto currencies and amateur investing I'm your host David Haye and in today's episode will exclusively look at litecoin we'll take a look at how this coin was created and why it was created we'll take a look a little bit at the evolution and I'll make some predictions for what I think this coin is going to do in the future so stay tuned I'll be right back so a quick history lesson before we get started litecoin was created back in October 2011 which makes it one of the first alt coins in circulation it was created by this guy Charlie Lee and it was really created to solve a lot of problems that Bitcoin was facing so what Charlie did was he reduced the block time of Bitcoin from ten minutes and in litecoin that block time is only two and a half minutes and by doing this he was able to confirm transactions a lot faster on the network and he was able to lower the cost of transactions on the network as well litecoin was also the first cryptocurrency to use the script algorithm which is different from bitcoins algorithm which is shot 256 the reason that this was so important especially back in 2011 is that when Bitcoin was gaining in popularity a lot of people were building specialized mining hardware and why this is so important is that back in 2011 when people were jumping on the Bitcoin bandwagon they were developing specialized mining rigs ASIC miners and this also left the other altcoins at a significant disadvantage and it really took the mining capability away from desktop PCs and into these specialized mining farms so by litecoin using the script mechanism they needed to develop a different type of minor which let meant that it was able to be mined on the desktop for a lot longer until eventually they came out with the ant miners and now of course litecoin is also typically mined on specialized hardware now now it's important to understand that litecoin is an actual Fork of Bitcoin so all of the mechanisms that were originally included in Bitcoin followed through the light coin like coin is really just a modification of the original Bitcoin protocol another reason that this is a big deal is litecoin has traditionally been a lot more flexible and there's a lot faster to adapt new technologies than Bitcoin Bitcoin has so many miners and so many people involved and there's so much money involved that there's a real resistance to upgrade the network in fear of cutting into one person's territory a great example of this was that everybody knew that Bitcoin needed to adjust its block sizes up from one megabyte and yet the miners were so opposed to this because the miners were the ones that were confirming the transactions on the network so they had a disproportionate amount of power over the network and they were also getting paid so they were taking advantage of these really high fees that were on the Bitcoin network well litecoin because it had a smaller mining pool and it had a different set of miners was able to quickly identify this problem but because it didn't have this huge community that Bitcoin had it was able to reach a consensus for cygwin and the Lightning what network way before Bitcoin ever could and so this means that the light coin as far as development goes has always been a step ahead of Bitcoin mainly because bitcoin is like a giant destroyer in the water and light coins sort of like a small speedboat that's able to maneuver around and this is going to undoubtedly continue in the future because while bitcoin is going to continue to evolve there are definitely going to continue to be these political battles going on between the miners the users and the people that have sort of a vision for the future like coins still facing those same problems but because there isn't as a larger financial incentive and because of the smaller community they're going to be much more flexible and they are going to be able to adopt new protocols and changes much quicker than Bitcoin is why does it like coin need to exist right now that's an excellent question a lot of the advantages of litecoin that were really huge selling features six months ago look like now they aren't going to be such a big deal the transaction fees on litecoin have always been much lower than Bitcoin the addition of the lighting network and the ability to process payments off the public ledger the fees on Bitcoin are supposed to drop as well with the Lightning Network and segregated witness the confirmation time should drop as well so the fact that there's a ten-minute block time isn't nearly going to be as important as it was because when you're conducting these transactions offline through these parties they'll be able to do instant confirmations and then they'll only have to do one right to the public ledger which is when they've sort of closed could Bitcoin slow like coins growth well yes that's a distinct possibility and if the implementation of the lightning Network goes correctly and Bitcoin sees its confirmation times drop along with the transaction fees drop then yes there could be a significant impact in litecoin but is that realistically going to happen I wouldn't hold my breath there's a lot of different ways to adopt technology and the way that you think it's going to work is different from the way that it's actually rolled out in addition to that we're also going to have to make the assumption that as Bitcoin evolves it's going to be able to continually meet customers needs and one of the biggest evolutions in cryptocurrencies is smart contracts and the reason that etherium is the world's second largest cryptocurrency right now and is actually taking a lot of volume away from Bitcoin is the fact that it's able to service these smart contracts now when Bitcoin was originally designed smart contracts weren't even thought of there have been a few solutions proposed on how we can use smart contracts on the older block chains and so right now there is one potential solution for enabling smart contracts which would allow coins like light coin and Bitcoin to use them and it'll be interesting to see so yes maybe bitcoin is going to get its transaction times down maybe it's going to even get its confirmation times down but that's not the only thing that cryptocurrencies are going to do or they're going to need to focus on if light coin continues to be more innovative and if light coin continues to adopt new technologies faster than Bitcoin it's just as likely that Bitcoin will continue to improve that light coin will continue to improve at a faster rate so for that reason I see in the short term like coin having to deal with the upgrades in the Bitcoin network I see that they're going to face a lot stiffer competition than they have over the last couple years but I also see light coin as being the solution provider and providing the technology to the older blockchains first so a lot of people in Bitcoin camps wait and see what happens on the litecoin network then they say okay that was a good idea or no that wasn't a good idea so for that reason I'm really bullish on litecoin because I think that they'll always be the leader in the older blockchain technologies all right so let's dive into some charts and take a look so if we look right now at litecoin it's currently the world's fifth largest cryptocurrency with a market cap of three billion dollars you compare that to Bitcoin sixty three billion dollars and you can see that there is a huge difference in value that's not to say that litecoin doesn't have its place in the market or that it's proportionally useful to Bitcoin it's just really showing bitcoins dominance in the cryptocurrency markets if we go look at the price chart we'll see that this year has just been incredible for litecoin although we did see a similar pattern back in the end of 2013 where Bitcoin where litecoin actually showed up from a price of $2 all the way up to 40 plus dollars so it's interesting to look at this chart here and to see well maybe this pattern is going to repeat and this is a similar pattern that was in Bitcoin so depending on how you look at the technology and depending on how you think things are going to play out you may think that we're in another bubble like we were here or you may think that that was just a natural correction and at this 2 or 3 years here of this this down Market was actually where the community as a whole and people in a whole we're figuring out what we're going to do with crypto currencies and right around here you can see that cryptocurrencies have gone back into favor we've seen crazy growth again and now like coins sitting at an all-time high in fact we're not quite an all-time high it was sitting at $80 it's back down at $60 but you compare that to where it was sitting even six months ago and that's really some exceptional growth we're looking at the comparisons between litecoin – and manera and you can actually see that litecoin still has a huge amount of volume in transactions like coins is actually doing a lot more transactions in volume than – and Marinero combined if you look over at the transaction fees which is another good indicator if we look over at the transaction fees you'll see that litecoin actually has a huge advantage over Monero i won't include Bitcoin I can include Bitcoin but Bitcoin is so much more expensive you'll see BTC over here again so bitcoins obviously still even with the new implementations being rolled out slowly Bitcoin has gone down off its high but it's still the most expensive cryptocurrency network to use so if we look at if we exclude Bitcoin we look at – in XMR we can still see that white coin really by transaction volume is is very very good and effective and a great way to transfer payments between two parties what are some of the new features that the guys over at litecoin are working on well atomic swaps have been getting a lot of attention lately atomic swaps basically let people change currencies without the need for a third party so in the example here that they're talking about they're saying that what happens if a person has 200 litecoin they want to exchange that for one Bitcoin an atomic swap would let two parties do that so it would let Mary exchange her bitcoins with Peter Peter would send Mary the bitcoins Mary would send Peter the light coins this would be done in a way where both parties were secure and would allow both of them to transfer the funds but it wouldn't require like a third party or wouldn't require commissions from a processing party so that could be a really big deal in the future and because everybody's really excited with atomic swaps I wouldn't be at all surprised if litecoin was one of the first networks to adopt that mainstream and really be the force the driving force behind that and then I wouldn't be surprised if Bitcoin like it has done historically follows behind litecoin and the adoption of technology and what one of my price predictions for litecoin well like coins price is going to follow closely with bitcoins so I think that because like coin makes up for such a small amount of the total volume of crypto currencies that as long as Bitcoin keeps performing well we'll see litecoin perform equally as well over the short term I think that litecoin might not grow as quickly as Bitcoin especially over the next maybe two months but if I was to look at a 12 month view I think that litecoin will increase more than Bitcoin I think that because it's smaller because it has more potential and because they'll continue to implement the technologies faster I think that the growth potential for litecoin far exceeds the growth potential for Bitcoin over the next 12 months because I hope you enjoyed watching this video I wanted to send a big thank you to everybody we just reached 20,000 subscribers on this channel that really gives me verification that what I'm doing has meaning and purpose and that I'm really helping spread the word of cryptocurrencies which is what I'm passionate about so really big thank you to everybody and of course if you have seen any mistakes or errors in this video please comment below I'll update the notes and as always I'll see you next week learn how to buy bitcoins step 1 install the Bitcoin wallet step 2 oops you waited a few weeks the price of Bitcoin just doubled step 3 tell yourself the price of Bitcoin is too high it will come down soon step 4 oh the price of Bitcoin skyrocketed again step 5 talk to your friends about how much money they're making with Bitcoin step 6 you finally buy a fraction of a Bitcoin but your friends laugh when they find out it's not enough to cover the cost of a wanna cry ransom what are you waiting for start investing today visit to david haye dot org @ slash Bitcoin for me every time somebody liked one of my videos I water these plants every time somebody subscribes to my 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About the Author: Maximilian Kuhn

32 Comments

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