Litecoin (LTC) in 2019. Waiting for the block reward to decrease.
Hi, Steemians..
Surely all those who trade on the stock exchanges yesterday noticed that, following Bitcoin, the litecoin went up sharply. There is little unusual here - this coin often does this. But I want to remind you that this year there will be another reduction in the reward for the found block. Let's turn to the background.
After the creation of the coin, starting in 2011, the reward for the found block was 50 LTC. After the first planned reward reduction that occurred in 2015, the block reward was LTC 25. We are interested in how the market responded to this action. Let's look at the movement of the LTC course in 2015. Graph taken from the now deceased exchange BTC-E, timeframe 3 days
The planned decrease occurred on 25-26.08.2015. According to the schedule, it is clear that at that time the coin began to fall. The whole point is that the coin turned out to be heavily overbought on the expectations of growth from this decrease in rewards.
A month and a half before this, speculative growth of bitcoin, about 15%, occurred on the cryptocurrency market. Exchange speculators on this background and on the eve of the event on the litecoin created an excessive demand for LTC, as a result of which the price for it rose by almost 600%. That is, the market won back the expected increase in the price of this coin in six weeks
After reducing the reward, litecoin did not become more in demand. The price for it has gone down, but it must be noted - it has not approached the previously marked minimum.
This year the situation is similar - a decrease in rewards should occur in spring. Based on experience, it can be assumed that its price on the threshold of this moment will rise again. Like four years ago, the bitcoin rate will also be in the minimum positions. So the current growth of LTC can be considered the beginning of the growth of this coin, in anticipation of a speculative rush.
It is hard to say, it depends on the number of new investors involved in this trade. But do not forget about the fact that many players on the cryptocurrency market firmly believe in litecoin and its bright future. In addition, the LTC chart has drawn a figure called “Growing Formation”, which tells us about strong growth. My verdict - most likely we will see a price of 0.03BTC, but possibly higher.
The @upvoteinvest team
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