Litecoin is one of the oldest altcoins in the history of cryptocurrency. It is also one of the most consistent altcoins in terms of crypto market cap rankings. Yep, while other altcoins have come and gone since 2011, Litecoin has successfully stayed inside the top 10 rankings for a very long time. Litecoin is considered the silver to Bitcoin’s gold.
How true is this narrative? Well, we are here to find out together. If you are into Litecoin, you might want to check this article that specifically talks about the best Litecoin wallets. Click here to check the article.
The Basic Idea Of Litecoin (LTC)
Litecoin was created in 2011 by Charlie Lee, the former employee of Coinbase. The idea of Litecoin is quite similar to Bitcoin, with Proof-of-Work (PoW) consensus algorithm. The biggest difference is that Litecoin adopts the Scrypt mining algorithm, while Bitcoin utilizes SHA-256. Since its inception, Litecoin has been popular among cryptocurrency enthusiasts. Many people praised LTC for being much cheaper and much faster than Bitcoin when it comes to transaction fees and speed.
For so many years, people have used LTC to “transport” their money from one crypto exchange to another. Due to its cheap transaction fees and fast transaction speed, people were not too worried about price volatility. However, this idea has been slowly challenged by the rise of other fast and cheap altcoins. Not to mention that nowadays stablecoins have become much more popular. So, yeah, many traders at the present time actually use stablecoins such as Tether to move their money from one exchange to another.
That being said, LTC remains popular in the eyes of its supporters and the broader crypto community.
LTC Is A Good Altcoin But Is It A Good Investment?
While undoubtedly LTC is a good altcoin but is it a good investment? Well, cryptocurrency typically has two different narratives. First of all, utilized as a currency. Secondly, to be seen as a legit store of value. Which one is LTC? Now that’s the question.
As a currency to transfer value across the border, LTC has been doing pretty decently. Not the best at that job as there are other altcoins with faster transaction speed, but it’s definitely up there on the top list. And regarding the store of value narrative, this is where the tricky part is. LTC has been deemed as silver to Bitcoin’s gold, and many people HODL it because they think it has proven itself as a relevant cryptocurrency for a very long time.
However, LTC also encountered some controversies in the past. Its founder, Charlie Lee, publicly announced that he sold all of his Litecoins in the peak of the bull market (December 2017). Many people believe that you shouldn’t lead the ship if you don’t believe in it. Not only that, but last year’s litecoin halving also proved that nobody really cared anymore about the impact of the halving to Litecoin. It did not increase much demand for this coin at the time.
That being said, Litecoin remains the top of the pack and has been able to keep its spot in the top 10 crypto rankings for a very long time. It still has over $1 billion daily trade volume, which is pretty huge compared to most altcoins out there. The potential is there, and I believe LTC can go much higher if BTC itself successfully breaks $20,000 one day.
Litecoin has very good potential to be a consistent store of value in the digital currency space. While its adoption is not really phenomenal but it has a consistent brand (often deemed as the younger sibling of Bitcoin). I believe Litecoin will be able to stay in the top 10 crypto rankings for quite some time despite the fact that it might never become as mainstream as Ethereum or XRP or Bitcoin itself. At the end of the day, Litecoin remains a decent cryptocurrency for investment purposes.
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