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Why did LTC rise in the past few days (Why can LTC fall so much)?

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LTC Why did it rise in the past few days? LTC Why did it rise in the past few d

Why did LTC rise in the past few days (Why can LTC fall so much)?

LTC Why did it rise in the past few days? LTC Why did it rise in the past few days? We can explain this from three aspects: 1. The price of Litecoin has increased; 2. The circulation of LTC has increased; 3. The price fluctuation of LTC in the market. Firstly, Litecoin is a global digital currency, it is a blockchain network supported by Bitcoin, and its operation principle is similar to the transaction gateway between banks, and LTC is a token based on Ethereum. There are a total of 21 million Litecoins, and 2 billion new LTC are generated every day (blocks), and each block will produce 1 million new LTC. This quantity is calculated based on computing power and hash value, so its inflation rate is about 6% per year. In addition, Litecoin also uses PoW for mining, which means that when more than 5% of the total network computing power is mined, electricity is needed. This ensures the normal operation of the entire network. But it should be remembered that if there is not a large supply of electricity, the network security can only be maintained by relying on packaging nodes or the contributions of others. This is also the main value of Litecoin. Secondly, Litecoin adopts sharding technology, which shortens the processing time of thousands of transactions per second to a few milliseconds. Because Bitcoin’s POC algorithm has some shortcomings, Bitcoin cannot meet the high TPS requirements and reduce efficiency, which has led to a continuous decline in the price of Litecoin. Thirdly, Litecoin’s design goal is to let people understand and accept “Litecoin Cash” as a cryptocurrency. Because they believe that Litecoin Cash is an effective payment method and can serve as an alternative, while providing better privacy and verifiability. Finally, let’s talk about the development process of Litecoin. Since May 2017, it has been rising continuously and has grown to nearly $20,000 by the end of 2018. In early 2020, after several halvings and large declines, Litecoin has entered a stable phase, and in the past year, LTC has gradually emerged as an independent market, breaking through the $10,000 integer mark. With the support of the market in the first quarter of 2020, Litecoin has become the focus of attention for many investors. “Why can LTC fall so much” LTC has fallen so much? In the recent market, the price of LTC has risen from $1 to around $3. But this time is different: when the market sentiment turns bearish, “good news” will make it more resilient; once “negative news” and “market adjustments” occur, its momentum will be further magnified. For stce, this phenomenon has already been called a sell-off signal (degenshot), which has existed before. If investors do not understand this concept, they may miss opportunities and try to buy their assets. So, what is the reason for the current trend? 1. Due to the current market environment, there are not many valuable things that can be exchanged for new funds to participate in them, so it is difficult for people to be interested in this type of investment. 2. In the past few months, we have seen more and more institutions and individuals enter this field for trading, and various methods have emerged, such as increasing liquidity through leveraged lending, which are methods used when going long on Bitcoin or Ethereum. 3. Because the overall development level of the market is limited (insufficient data support, so it takes time). 4. “Premium”, “undervaluation”, etc., make many ordinary people hesitate. (Note: The author of this article is David Chaum, a columnist for Bitcoinist) In addition, some analysts believe that although the current market situation is not healthy, such a rebound is still relatively sustainable. According to bitinfocharts statistics, as of around 18:40 on August 2nd, more than 80% of all circulating digital currencies on the market are in a loss and still falling. In the past month, most mainstream currencies have experienced a certain degree of decline, with Litecoin having the largest increase and a 60% decline. Other currencies have performed flatly. It is worth noting that Litecoin briefly rose above $6 on September 14th, and then quickly recovered. However, this morning, Litecoin once again experienced a wave of declines, falling below $5 and continuing to fall, reaching below $4 at the lowest, and eventually rising back to $5 this morning. According to the latest data, Litecoin has destroyed approximately 1.2 billion LTC in the past 30 days. However, with the recent market volatility intensifying, this trend appears to be reversing. Original article from ambcrypto, compiled and translated by Blockchain Knight. English copyright belongs to the original author, please contact the editor for Chinese reprinting.

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