Litecoin price analysis

The Litecoin value and chart is in constant flux

What is the best moment to buy Litecoin? How do you assess its exchange rate, and where does Litecoin derive its value from? On this page, we will provide you with some valuable insight concerning these questions. We will also briefly discuss Litecoin's price history. The cryptocurrency market is always open. You can trade your favourite coins 24 hours per day, 365 days per year. This may sometimes become quite intense and stressful, but we can guarantee you that it will never become boring. There is always something new to find out.

Where does Litecoin derive its value from?

The Litecoin exchange rate is the product of a game of supply and demand. Investors gather on various online exchange platforms to buy Litecoin and sell Litecoin. Did the coin's exchange rate go up? Then demand outstripped supply and vice versa. Unfortunately, predicting the exchange rate is quite a bit more challenging than the principle of supply and demand. We now know how the exchange rate functions, but where does Litecoin derive its value from? How do we assess Litecoin's final value, and why are people eager to buy it?

What do proponents of Litecoin argue?

Opponents argue that cryptocurrencies generally do not possess any intrinsic value. Aside from their functionality as a trade good, they do not exist in the physical domain. It amounts to nothing more than a registry entry in a database. So why would it be of value? This may seem like a strong argument, but it also begs the question what ‘intrinsic value’ actually means. Think about it for a second, and you will notice that no object carries value of itself. An object only gains value when people attribute value to it. There is no natural law dictating that one kilogram of gold is worth a certain amount of euros. If we all decide to drop our conviction that gold is pretty, its value will crash. 

The concept of value solely exists because people tend to attribute specific value to objects. This is also why people invest in Litecoin. It is an independent form of money that is unique in the history of payment methods. For the first time, we invented a payment method that operates completely independent from governments and country borders. Doesn't this already sound like something valuable?

The political aspect of Litecoin

Cryptocurrencies symbolise the democratisation of our money. Governments and banks will no longer be able to print extra money and conduct monetary policy. The rules have been predetermined and apply in the same way to everyone. The protocol can only be amended if a majority supports the change. You can compare it to precious metals. Gold is a scarce resource; no one can just print some extra gold. Now, if Bitcoin is the digital gold, then Litecoin is the digital silver. They form the scalable digital versions of precious metals. Litecoin allows you to transmit value from one continent to another within just a couple of seconds. It operates independent from intermediaries, and as such, it can be regarded the purest form of money currently available.

The Litecoin network effect

In the end, the success of a payment method is entirely dependent on the number of users utilising it. Litecoin might not be as popular as Bitcoin, but it is steadily becoming more mainstream. More than 60,000 users engage with the coin every day. Bitcoin's little brother has become an established brand name on the crypto market. It currently holds the fifth place in terms of net market value. Indeed, the ‘light version’ of Bitcoin is doing quite well.

Litecoin brand value

It is comparable to the network effect, but also the Litecoin brand is doing exceptionally well in the crypto industry. Litecoin was the first coin that successfully managed to split off from Bitcoin. It has been active since 2011. The currency is always one of the first to pick up on new developments. It has been doing very well until now. Litecoin is well-known enough to have gained a prominent place in the short history of cryptocurrency, which already ensures that the coin will always represent a particular value.

What do opponents of Litecoin argue?

Not everyone recognises the value of cryptocurrencies. Many financial experts have gone on record saying that Litecoin and other cryptocurrencies have no future. Why do they argue this? Their main argument is that crypto is nothing more than a pyramid scheme. One fool buys Litecoin hoping that another fool will pay even more for it: the Greater Fool Theory. Litecoin does not possess any intrinsic value to them, it is not bought for use, but solely to sell again for profit.

They like to compare cryptocurrencies with gold. You can use gold as a payment method, just like Litecoin. But the value of gold is not solely determined by supply and demand. People also value gold inherently. We make jewellery out of it. The price people are willing to pay for gold jewellery is used as a frame of reference for the market value of gold. Litecoin does not have value outside of the digital domain, its pricing comes out of thin air, it is worth what the fool likes to pay for it, et cetera. Opponents argue that cryptocurrencies are bound to become worthless over time.

Indeed, assessing the value of Litecoin and other cryptocurrencies remains a problematic affair. But this is also what makes crypto so enticing: there is always something happening. Hopefully, you will now understand a bit better where Litecoin and other cryptocurrencies derive their value from. Is this the right moment to start buying? Of course, that is entirely up to you. If you still have any questions about buying or selling Litecoin, you can always contact our live support.

The Price History of Litecoin

Litecoin has been around for less than ten years, but it has already caused much spectacle on the market. The violent cryptocurrency fluctuations offer exciting news stories for the media, which is why the coin has appeared on the news relatively often. We have listed a couple of highlights for you here, to allow you to have a better look at the Litecoin price history so far: This overview reveals that this project, and cryptocurrencies in general, are still in an early stage of development.

October 2011 - the Litecoin network goes live

It already seems so long ago, but Litecoin has only been around since 2011. Shortly after its launch, a single coin was worth about $0.30. The start of Bitcoin's smaller brother had been successful.

November 2013 - the first massive bull run

About two years after the initial launch of Litecoin, it surged from approximately $4 to 53$ per coin. This happened over a few days. After the bull run was over, the coin's rate saw a tremendous crash, with its value dropping to a bit over $1.

The year 2017 - the rebirth of Litecoin

Much time would pass before Litecoin recovered from its crash in 2014. As mentioned before, its price had dropped to $1. It managed to stabilise a little bit afterwards and for a while hovered around $4. It was only in 2017 that Litecoin started its new advance. By the summer, it had managed to emulate its $50 record high from 2013.

December 2017 - a new record high

The advance that started in 2017 resulted in a new record high by December of the same year. On December 19, 2017, Litecoin's value spiked to no less than $375. Shortly after, the crypto winter struck, causing its rate to fall back to about $20. 

Nowadays, Litecoin has recovered a little bit, with a current rate of a bit under $100 per coin. As you probably have noticed by now, Litecoin has already faced some enormous price fluctuations. We hope that this page has provided you with a bit more insight concerning Litecoin's price history. You can use this information to make your own informed decision. However, always keep in mind that when considering investment, it is vital that you also do your comprehensive research. Do not fall into the trap of getting carried away by emotions. Got your emotions under control? A number cryptocurrencies have experienced price swings just like bitcoin cash, read about the history of the Bitcoin Cash price, Ethereum price, Ripple price and Bitcoin price.