The first quarter of 2019 has been fairly decent for Litecoin. Not just the price of the coin saw a peak of USD 99 dollar but now the hashrate has all reached the new all-time high making it fundamentally stronger and more secure.
Litecoin’s Network hashrate follows the price
According to data provided by BitInfoCharts, the network peaked at 359.43TH/s on 4th April 2019 breaking the previous high of almost 11 months ago 24.05.18 at 342.88TH/s.
The same news was shared by Litecoin’s official twitter handle
This high hashrate means that the network has gone stronger fundamentally and it is now much harder and difficult than it has ever been for a single hacker to attack the network through proof of work, the consensus model by where new blocks of transactions are mined and verified.
What has been more interesting that this spike in hashrate is followed by the recent spurt in the price of the Litecoin and this is not the first time this has happened. The network hashrate has historically too moved in correlation with the price of the coin. Historically too the hashrate has been behaving in a similar fashion to a moving average as it takes time for miners to set up and acquires new machines. What is also noted that the reaction of hashrate to price on the downside is much quicker as it is just a matter of seconds to switch off the machines once they become unprofitable.
But this spike in Hashrate has quickly recovered and stuck closely to the meteoric rise in price as the mining hardware was most likely still sitting on the sidelines just waiting to come back online. This also explains why it has reached a new all-time high even though the price is still 1/4 from a peak of $400+. Another reason for this rise beside the price is that there could be more efficient mining hardware which is generating higher hashrates even though the price is still 1/4 from the peak of $400+.
So with this equation, it looks pretty clear that there is still greater potential for room to the upside. The longer the price stays stable in this range there are more chances of getting a more accurate the hashrate will be. Going on existing data and hardware, we think it would be possible to comfortably reach 500TH/s at $100. This would again depend on the availability of mining hardware so don’t expect it to continue at this velocity going forward.
Litecoin is just getting stronger and the current price is just becoming a base for the coin to rise higher. Being in top 5 for quite some time now if the fundamental story of the coin keeps getting stronger, very soon we may see Litecoin among the top 3 coins.
Is Litecoin coming out to be the best coin to invest in? Do let us know your views on the same
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.