Why Litecoin Is Severely Undervalued (And Could Replace Bitcoin)
I do think one of the reasons why Litecoin only has price of $41,68 today (1,6% of BTC) is due to a logical fallacy.
As we all know from the start Litecoin has been dubbed the silver to Bitcoin’s gold, a supposedly worthy title because of the ‘similarities’ between the two.
However, gold and silver are not similar at all. They have distinct properties and different uses: Silver is also an industrial metal.
On average, silver exists at a 17:1 ratio versus gold in the Earth's crust, thus gold is much more scarce.
Technologically, Litecoin has block times of 2.5 minutes - four times faster than Bitcoin - that actually makes a huge difference in terms of practical utility.
LTC is also more energy-efficient, where BTC is estimated to consume that same amount of energy as Denmark by 2020.
Litecoin does not have any scaling issues at present.
Usually, there is a correlation between scarcity and price.
With potentially 84 million LTCs rather than 21 million BTCs, Bitcoin is 4 time more scarce than Litecoin.
One could argue that the price of Bitcoin should be 4 times the price of Litecoin.
Gold and silver are the World of Atoms, whereas BTC and LTC are the World of Bits. Certainly, BTC vs. LTC is not scarce in a gold vs. silver sense.
Thus, I find no obvious argument why the price of Litecoin is at least $650.
How does Litecoin Match up against bitcoin in terms of scalability?
Because that appears to be rapidly becoming a problem for bitcoin right now... If it is easier scalable, or has less problems, that could even be a justification for an even higher valuation than 1/4 bitcoin...
According to my knowledge Litecoin does not have any scalability issues at the moment.
Litecoin is not very scalable either, although there is probably more headroom and -
for now - changing the protocol is much easier than in the politically charged Bitcoin sphere.
For really scalable solutions, I am looking at IOTA for answers (and perhaps @Dan with a 4th project after EOS 😄).
Hope investors will think the same way, very soon. Your arguments are true.
Bitcoin has been around for almost 9 years now and it is fully decentralized ecosystem that is moving towards best possible solutions. Whereas Litecoin is a couple of years old and Charlie Lee (creator of Litecoin) has a big say what is next for the Litecoin.
Litecoin was created October 7th, 2011, so it almost 6 years old! Also, a dedicated entrepreneur such as Charlie Lee is a big plus for LTC, imo. Anybody seen Satoshi Nakamoto lately:)
It is not just a couple years old, just a few years older than BTC. At the moment having Charlie Lee negotiate with the miners etc just makes Litecoin faster to improve and adapt new technology than Bitcoin. They can not cooperate and will therefore always be behind. Y
https://en.wikipedia.org/wiki/Litecoin it came out october 2011! While Bitcoin came january 2009. Ethereum on the other hand is only a few years old, it came out 30.07.15!
At the moment Charlie Lee's and Litecoin miner's interests are aligned. As soon as they are not, Litecoin will go trough the whole different set of difficulties than Bitcoin. Because there is one person who has more say in what the future holds for Litecoin.
nice post thanks
Good share btut I still think btc will be better as it is the first crypto and therfore mainstream will accept btc first! followed and resteem to support you. hope you can do the same for me
bitcoin is overhyped, there are a lot of other coins that in my opinion are better than bitcoin.
Technically perhaps, but 'first mover' argument counts and the security of Bitcoin has been proved by the lapse of time. Besides, it still functions beautifully.
That's an interesting way to look at it, at $650 I would really need to go locate the few litecoins I have scattered across a few accounts that I had left for dead when it was just a few bucks. Cheers
I do agree with you as I believe it is situated far behind bitcoin.
I think you are forgetting the fact that Bitcoin is not only the first cryptocoin, but that it is the most established. It is accepted everywhere while litecoin isnt, for instance I can spend Bitcoin at stores online more often than I can litecoin. That said Litecoin is a good coin and will probably increase in value. but what can it do that Ether, Zcash and Monero cant do?
I do think that Litecoin going forward will be accepted 'everywhere' as well, because it is much faster and can handle higher volume of transactions. Yes, all these coins, Ether, Zcash, Monero++ is beyond the scope of this post:)
Litecoin is at $41.68 now damn.
Do you think it is worth investing in Litecoin now or is it too late?
Newer to late