Relationship between offer and demand in the Crypto Currency: View of Litecoin (LTC)

Crypto currencies have attracted significant attention in recent years, and many investors want to use the rapid growth of digital assets. These crypto currencies are Litecoin (LTC), a transient electronic cash system that receives attraction from its launch in 2011. In this article we will enter into the relationship between the effects. Cryptocurrency market.

** What is the supply?

Supply references to the total amount of a certain crypto currency in circulation. It is the number of coins or token the network of or created. The supply of the CRIPTO currency is determined by an algorithm, which dictates when the new coins are added to blockchain. In the case of Litecoin, the Block Awards for Mining New Coins is 50,000 LTC.

** What is demand?

Demand for the number of Litecoin coins possessed by investors or traders in circulation. This is the total amount of coins that people own or plan to buy. The request for a crypto currency can be influenced by different factors, including its price, the rate of adoption and marketing feelings.

Relationship between offer and demand: view of Litecoin (LTC)

The relationship between offer and demand is complex and dynamic in cryptocurrencies like Litecoin. Here’s how it takes place:

• Supply : The total number of LTC available on the market is limited to 84 million. This means that if you buy a certain amount of LTC, you basically limit your potential for future profit.

• Demand : LTC demand may be influenced by different factors, including its price and rate of adoption. As Litecoin prices are rising, more investors will want to buy LTC, increase the available offer and potentially drive prices.

• A complete price and prices

  : When the price of Litecoin is high, investors may be more prepared to keep their coins for increased trust in the network. This can lead to an increase in demand for LTC, increasing the price. In contrast, when the price of Litecoin drops, investors can be less confident and see that they sell their coins, reducing demand and reducing prices.

• Halving event : Litecoin network has been affected several poles from its inception, where the block of reward is reduced by half. This bid reduction has led to increased demand, increasing the price of LTC.

Historical Analysis: Litecoin (LTC) Offer and Demand

In order to understand the dynamics of Litecoin’s offer and demand, let’s look at some historical information:

• In 2018, the price of Litecoin was about $ 300. At this point, there was approximately 20 million coins available.

• By June 2020. The price increased to over $ 600, which increased the offer from about 15 million coins to almost 25 million coins.

• As prices have increased, the demand for LTC has increased significantly, which has led to a reduction in the available offer and higher prices.

Conclusion

The relationship between the offer and demand of Litecoin is complex and influenced by various factors. SUBMISSION PRICE PLAY THE PLAYING AS THE FALL:

• When Litecoin prices are increasing, investors increased their proportions, increased the available supply and potential prices driving.

• Contrary to this, when the prices of Litecoin falls, investors seek to sell their coins, reducing demand and reducing prices.

Understanding the dynamics of Litecoin’s supply and demand can help dealers make informed decisions to buy or sell LTC. However, it is crucial to note that the cryptocurrency market is inherently unstable and is subject to significant fluctuations in the price.