The blockchain industry subsector of “privacy coins” – cryptocurrencies with embedded technology that shields identifying information from public view – is becoming one of this year’s hottest buys. One of the biggest privacy coins, zcash (ZEC), which offers “shielded transaction” capabilities, has nearly tripled so far in 2020, while monero (XMR), which uses a technique called “ring signatures” to obscure sender and receiver data, has doubled.
Litecoin founder Charlie Lee told CoinDesk in an interview the project is now looking to adopt key privacy-enhancing features, which he sees as increasingly attractive to cryptocurrency users. The enhancements are already being tested, and an upgrade to the main network is scheduled for next year.
If the effort succeeds, it might inject a jolt of enthusiasm into a project that has suffered from a lack of momentum in digital-asset markets. Litecoin is up 21% this year after a 38% gain in 2019, which pales in comparison to bitcoin’s 59% year-to-date gain and a 94% increase last year.
“I want to make it so that users don’t have to worry about giving up their financial privacy by using litecoin,” Lee said. “Even if you’re not doing anything illegal, you don’t want people to know how much money you have or what your paycheck is.”
- Daniel Cawrey
Read More: In Effort to Differentiate, Litecoin Makes a Move to Privacy
Bitcoin is hovering near $11,400 at press time, having snapped a six-day winning trend with a 1% drop on Tuesday.
Notably, the cryptocurrency formed an "inside day" candle on Tuesday, aborting the immediate bullish technical outlook. Inside day candle occurs when the cryptocurrency trades well within the preceding day's high and low and indicates consolidation.
As such, Tuesday's high of $11,567 is now the level to beat for the bulls. A break above that level would signal a continuation of the recent rally and open the doors for resistances above $12,000.
Alternatively, acceptance under Tuesday's low of $11,314 would imply a bearish reversal and could yield deeper declines.
That said, the on-chain metrics favor a continued rally. The seven-day average of bitcoin's hashrate or measure of the processing power dedicated to the blockchain rose to a record high of 144.29 exa hashes per second (quintillion hashes per second) on Tuesday, surpassing the previous peak of 143.19 EH/s observed on Sept. 18, according to data source Glassnode.
It indicates high miner confidence in the cryptocurrency's price prospects. Miners largely operate on cash and liquidate their BTC holdings to fund operations. As such, they are likely to dedicate more resources to the computer-intensive mining process if they are bullish on price.
- Omkar Godbole
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