Litecoin Price Prediction

Litecoin Price Prediction

Disclaimer: Before you read this article, understand that the analysis that I have done is assuming that there’s no external influences in the near future. The extrapolation isn’t based on day to day changes in Litecoin, it’s based on historical data in order to study the future of Litecoin.

What is Litecoin?

Today, if you speak to someone about cryptocurrency, you can expect to get a few answers like “Yeah, it’s pretty solid, but I don’t know too much”. That’s the usual phrase since nobody really knows where the prices are going. Whilst writing this article, neither do I.

But we can make some assumptions and then study the extrapolations, maybe it can give us a hint into where Litecoin is going.

Former Google employee Charlie Lee founded Litecoin in 2011. The currency featured new technology that had decreased block generation line and in 2013 reached a market cap of over $1 billion. The currency will also have a maximum cap of over 84 million Litecoins, therefore, it has potential to be much bigger than bitcoin. Litecoin also has better transaction times since it aims to process a block every 2.5 minutes compared to Bitcoin’s 10 minutes. It also has almost zero payment costs which make the platform more attractive for users. I believe this is what can play in Litecoin’s favour in the long run, the value of the currency will surely grow in the future.

But don’t trust me, trust the numbers. In this article, I’m gonna take a few assumptions and then study the data to make some informed conclusions.

WikiCrypto’s Litecoin price prediction

Here’s the numbers, the data that I used is the highest price of Litecoin every single day from the day when Litecoin began. Here’s the graph of how that looks!

raw-data-300x180 Litecoin Price Prediction

 

Here, the vertical axis is prices and the horizontal axis is time. This graph takes into account over 1586 days. As you can see, there was one boost of price in the early days of Litecoin, after which nothing happened for a while. Then, they currency took off again and isn’t stopping anytime soon.

So now let’s assume this is the general trend of the market. I used a program to find the quintic graphical equation of the trend. The equation is as follows:

y = 3.421×10^-13 x^5 – 1.31×10^-10 x^4 + 1.85×10^-6 x^3 – 0.001 x^2 + 0.3 x – 9.95

 

analysis-of-litecoin-prices-300x179 Litecoin Price Prediction

 

 

The uncertainty in the trend calculations is around $4, and the graph accurately sums up how the data is moving.

In order to understand how the underlying trend is working, I’m taking a derivative of the current graph. All the derivative will do is show us how the future trends will be going. The derivative of the equation is as follows:

y = 0.3 – 0.002 x + 5.55*^-6 x^2 – 5.24*^-10 x^3 + 1.710498*^-12 x^4

The graph of the derivative is as follows:

 

derivative Litecoin Price Prediction

As you can see in the graph above, the derivative graph is positively sloped. In all, this indicates an increasingly increasing trend in the future. So, WikiCrypto’s Litecoin price prediction would be that the market’s looking great for Litecoin in the near future. 

So what does that mean for us?

Essentially it means that there’s only growth in the future.

However, it’s far fetched to assume that there will be growth infinitely. Maybe the currency will continue to grow for a while and then reach a specific price and level of supply. Thus, the currency will stop shifting prices and will have a price plateau in the future. This price plateau, I cannot specify from calculations. However what we can safely assume is that the increasing price is only due to increasing adoption rates of cryptocurrency. As people get introduced to it at a fast rate, the currency will continue to grow at a fast rate.

Thus, we can assume that if the adoption rates are increasing and will continue to increase. So the Litecoin price prediction would be positive, indicating a medium run increase in prices. 

Understand that this deduction is ceteris paribus, on the assumption that nothing else changes. It’s also on the assumption that there’s pretty much no external influences, which there definitely will be. However, even if there are external influences, the data will continue to follow this trend in the future after recovering from any flash crashes or external influences.  

Therefore, according to this Litecoin price prediction model, the price of Litecoin next year should have a dramatic increase due to mass adoption. This mass adoption might take more time to come, however, but when it comes, the price will skyrocket.

So, should you invest now? Here’s where to buy!

Coinbase Coinbase offers one of the fastest services for people buying, exchanging and trading bitcoins. The website is has a great user interface. This including an automated chatbot which can help users in all aspects of the website. It also offers real-time graphs and analytics free of cost, so that you can monitor your investment grow day by day. 

The platform is quite intuitive and easy to use, beginners who are adventuring into the world of bitcoin will find it’s very informative and reassuring. The website has a chatbot, for helping people with any issue, and it works pretty well surprisingly. It can understand you even if you make a few spelling mistakes, so it’s quite useful for beginners.

The exchange offers a free online wallet for your bitcoins on the creation of a free account!

Conclusion

Based on the data analysis that we saw above, the Litecoin price prediction model indicates an upward trend in the future. Thus, I think it’s a great time to invest just because the price of a Litecoin is around $50. This price might climb up to over $5000 just like Bitcoin did. The difference is that nobody expected Bitcoin to climb so high; with the benefit of hindsight, we can assume that it might climb as high as well.

If you already own some Litecoins, don’t forget to protect them with a hardware wallet. Read our Ledger Blue Review or our Ledger Nano S review in order to find the wallet that fits your needs.

 

 

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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