All attention is on Bitcoin in the cryptocurrency market, and they’re all for excellent purposes. It is not only the most valuable cryptocurrency in terms of market capitalization, but historically, it has also been the only cryptocurrency to move the market higher and lower. As a result, some cryptocurrencies have the chance to trade while investors are focused solely on monitoring Bitcoin.
This could apply to Litecoin and Dash, which have been climbing regularly for the previous month at a period when Bitcoin is running out of steam. During the previous 30 days, Dash has increased by 8.13% and Litecoin has increased by 39.70%. Bitcoin, on the contrary, is down 16.68%.
What feature does each of these coins share?
The very exact cryptocurrency system that enabled the creation of Bitcoin is the foundation for both Litecoin and Dash. Litecoin was introduced as a “lite” version of Bitcoin 2 years after it had emerged as the first cryptocurrency, thus the name. The objective of Litecoin was to simply enhance the speedier, less expensive payment options that Bitcoin currently provided.
Dash, originally started in 2014 as a fork of Litecoin, has an identical history. This indicates that the initial Litecoin blockchain programmers choose to divide the primary blockchain and offer the recent one the title Dash. Since mining is required to produce new structures for the blockchain, the notion that all three cryptocurrencies are related is significant since it indicates that they are all based on practically the exact proof-of-work blockchain system.
This also implies that, according to an algorithmic schedule, all three of these coins go through a procedure called “halving.” The block benefit for miners is decreased by 50% during a halving. Every four years, the value of both Litecoin and Bitcoin is halved. Just because the block profit is only decreased by 7.14% rather than 50%, Dash experiences a halving once after every 365 days.
How to benefit from the halving
Halving occasions have historically been incredibly profitable for traders and have frequently been eagerly anticipated by the cryptocurrency market. The simplest approach to benefit from these occurrences is to purchase anything between 12 and 15 months before the subsequent halving. Since each currency’s halving date is calculated algorithmically, it is simple to predict when this will occur for each coin. The following Bitcoin, Litecoin, and Dash price halvings are scheduled for March 2024, July 2023, and May 2023, respectively.
It’s simple to recognize why Litecoin & Dash both look to be deviating from Bitcoin at the moment if you comprehend the timeframe of these halving occurrences. If past models are accurate, it would be reasonable to assume that Dash and Litecoin will benefit from their various halving events first and that Bitcoin will lag by at least a few months. Furthermore, one would anticipate a bigger jump in the pricing of Litecoin than in Dash because the Dash halving isn’t as severe as the Litecoin halves (7.14% vs. 50%), which is what we are experiencing. Litecoin may experience a 200% price increase by the time of its subsequent halving, according to traders’ current expectations.
Greater potential than Bitcoin, but how long will it last?
As a result, Litecoin and Dash may have greater long-term potential than Bitcoin. Crypto outlets are already talking about Litecoin’s “pre-halving surge,” which has only increased the repercussions of this action. Because Bitcoin will not be halved until 2024, it will most certainly trade steadily for the remaining part of this year and the early quarter of 2023. As a result, Litecoin and Dash have a very narrow window to overtake Bitcoin. At a time when the majority of the cryptocurrency market is in the red, this may be a clever chance to gain both Litecoin and Dash.
Throughout the lengthy period, though, I remain far more bullish about Bitcoin than Litecoin or Dash. Certain traders, for instance, anticipate that Bitcoin will rise to $63,000 by March 2024 due to market expectations of the upcoming halving. Bitcoin is indeed the best cryptocurrency to acquire and hold for the long term. If you’re wanting to add to your cryptocurrency portfolio before the end of the year, Litecoin and Dash may be truly worth a good decision.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.