Bitcoin may have reached almost an $18,000 high this month, but this isn’t the only cryptocurrency that has spiked over the last few months. If you are serious about cryptocurrencies, you shouldn’t forget about Litecoin.
Why Litecoin? Litecoin is currently the fourth largest digital currency in terms of market capitalization. Today, LTC is only behind to Bitcoin, Ethereum, and Bitcoin cash.
However, for someone who is a short-term investor, Litecoin deserves special attention. In contrast to Bitcoin that has risen by up to 1,731% this 2017, Litecoin, on the other hand, has risen by a whopping 8,165% for this year. Litecoin has reached more than $325 on December 11, 2017, considering Litecoin was only at $4 during the start of 2017. It is also worth mentioning that the alt-coin has also spiked to nearly 400% over the last month alone. And for this week alone, the price has jumped by over 220%.
What Makes Litecoin Bullish?
The growing public interest in Bitcoin has affected other cryptocurrencies in a good way. Both Ethereum and Litecoin had their share of the cryptocurrency craze. For some individuals, they invest in Litecoin mainly to diversify their cryptocurrency portfolio towards alt-coins as well.
If you will look at volume levels for Litecoin, you’d notice that the average dollar-volume was at $67.3 million since January of 2014. By 2017, it was an average of $266.8 million. And within the next six days, dollar-volume has reached $3 billion. Many believe that this amount of money came from FOMO (fear of missing out) traders.
Is Litecoin the Cryptocurrency’s Silver?
Just like any other cryptocurrency after Bitcoin, Litecoin’s creator Charlie Lee wanted Litecoin to be the silver in the world of cryptocurrency where Bitcoin remains as the gold standard. Unlike Bitcoin, Litecoin offers transactions that are four times faster. However, you have 84 million litecoins that can be mined compared to Bitcoin’s 21 million.
However, it wasn’t designed to be a direct competitor for Bitcoin in the first place. According to Lee, he envisioned Litecoin to be able to compliment Bitcoin.
If his vision of Litecoin is going to become a reality, he believes that BTC can be used in order to move millions of dollars while LTC, on the other hand, can be used for cheaper things.
LTC Is Risky
Charlie Lee expressed his concern despite the fact that he should be happy with the bullish year for Litecoin. He mentioned that “buying LTC is extremely risky”. He also mentioned that he is expecting Litecoin prices to enter a multiyear bear market which could mean bad news especially for those who plan to make Litecoin as a long-term investment. In fact, there is a possibility that the cryptocurrency could drop by as much as 90%.
Should you take Charlie Lee’s opinion considering that he started Litecoin? According to some experts, you should always take these words with a grain of salt. For the most part of cryptocurrency prices over the years, its price is whatever people say its price is. That means that if there’s a rise in demand; expect the price of LTC to also soar.
Do the former Google engineer and LTC creator have the right forecast about the possibility of a bearish future for LTC? Or is this only the beginning for Litecoin?