cryptodailytrading.com

With Litecoin Price Leading the Way in Bullish Market, Is It a Good Investment or Highly Overrated?


With Litecoin Price Leading the Way in Bullish Market, Is It a Good Investment or Highly Overrated?
You may also like:
Contents

Before there was Bitcoin Cash and its civil war with Bitcoin, the biggest rivalry between the coins was probably between Litecoin and Bitcoin. Litecoin was created to be the ‘silver to Bitcoin’s gold’ and to operate a lot faster, and more like cash, than the original cryptocurrency.

However, in the recent past, the coin has slipped a bit from many people’s minds as other coins with similar interests, but bigger mouths have come to the fore and pushed for the cryptocurrency market’s attention.


That has changed recently, though, as Litecoin came to the fore in Q1 of 2019. On New Year’s Day, Litecoin was worth $30, but it reached a year-high of over $90, a 300% increase in three months.

This has led many to ask if Litecoin is on its way to being the go-to crypto in the future, or if, rather harshly, it is just a testing ground for Bitcoin.

Critiquing Litecoin

Jason Hamlin of StreetWise Reports said:

“I read a critique on Litecoin recently. The basic premise was that Litecoin is just a testing ground or testnet for Bitcoin. The author seemed to insinuate that Litecoin had little value other than testing new technologies prior to Bitcoin implementing them and was not a valuable standalone cryptocurrency.”

This was further corroborated by a tweet from Mike Novogratz:

Critiquing Litecoin

But, is this assessment of the coin a little harsh? Litecoin is one of the older, more established cryptocurrencies, and it has done a lot of positive things for the market. Its price is still quite low, especially compared to Bitcoin, so why are people slating its use?

Reasons for applauding Litecoin

Hamlin describes in his article a few reasons why Bitcoin should be taken seriously and looked into as a good deal, rather than as an overrated asset.

“One way to look at the valuation is comparing the supply of each token. There will only ever be 21 million Bitcoin and 84 million Litecoin created. The supply of Litecoin is 4x the supply of Bitcoin, so we might expect the price to be somewhere in the general vicinity of 1/4 or 25% of the price of Bitcoin,” Hamlin said. “With Bitcoin around $5,000, this would put the target value of Litecoin at $1,250. Yet, it is currently trading at just $80.”

It is true that things like the Lightning Network first appeared on Litecoin before Bitcoin, but that is again not a reason to downplay Litecoin, or call it overvalued. It is forging the way in terms of being a fast and useable cryptocurrency because of its innovations.

“Litecoin is faster than Bitcoin at confirming transactions. On average, it takes Litecoin just 2.5 minutes to confirm a transaction compared to 10 minutes for Bitcoin. With the implementation of Segwit on both networks and availability of the Lightning Network add on, fees are just pennies and transaction times can be reduced to a matter of seconds,” Hamlin adds.

More room to grow

Litecoin also has done a lot to shape the current positive sentiment across the market – that in itself is no mean feat and should really indicate that this coin still has a lot of room to go before it finds a true and accurate value.

Cover image via u.today
Only the most important posts per day. Infographics, analytics, reviews & summaries. Join our Telegram channel!
👓 Recommended articles

Blockchain Adoption Uncovered by Forbes as Billion Dollar Companies Buy In to Drive Technology

  • Darryn Pollock
    🤷 Opinions

    Blockchain adoption by billion dollar companies is probably a lot further along than expected as Forbes has revealed


Blockchain Adoption Uncovered by Forbes as Billion Dollar Companies Buy In to Drive Technology
You may also like:
Contents

Forbes has recently released a list of 50 companies utilizing blockchain technology that are valued at over a billion dollars, these companies include the likes of Amazon, Microsoft, IBM, as well as less technical ones such as BP and Walmart.

What is surprising about the list is just how broad the scope of interest is when it comes to blockchain by these massive global companies. The adoption of blockchain, over the last 10 years, has been relatively slow, up until now.


But, in 2019, it seems that the future of technology has been laid out and to get a competitive edge these companies realise that there is a lot that can be done with blockchain and that they need to get their foot in the door.

Heavy hitters

While the Forbes list paints a grand picture of blockchain adoption, it also shows just how far along in the process some of these companies are. For companies to have made it onto the list, they have to have been using blockchain in some sort of effective and tangible way.

There are some, like insurance giant MetLife, which already has a working blockchain, and product, that has been going since 2014. Back then, the adoption of blockchain by major companies was not even heard of – it was more about the starting boom of Bitcoin.

But blockchain is the new leader in the space, taking over the batton from cryptocurrencies which certainly helped raise the profile of the entire ecosystem. If it was not for the cryptocurrency boom, a lot of these major companies would never even have stumbled across the underlying technology.

A drive for blockchain

Now, with the cryptocurrency market right back down again, and a lot of the speculation having been cleared out, there has been a whole year of rather focusing in on blockchain building and its application, instead of making money off speculative tokens.

That change in mindset has really helped major corporations take on the technology and begin experimenting with its efficiency and disruptive powers. There is almost an arms race going on as the advantages the technology can give across a huge spectrum of enterprises, which are massive and very coveted.

A need for enterprise investment

There still remains a debate as to whether blockchain, and crypto, with its decentralised nature, is in need of these major corporations coming in to monopolise the space which was born out of defiance of banks.

However, it would be foolish to think that blockchain can reach its full potential without a drive from big companies with big budgets. Smaller startups and companies are able to bring innovation and excitement to the space, but the mass adoption will only come when the heavy hitters are involved.

Cover image via 123rf.com
Subscribe to the official U.Today Telegram channel. Get news first!
👓 Recommended articles