Charlie Lee's new tweet: LTC>BCH?

hieuthehungry (28)in #cryptocurrency • 6 years ago (edited)

Of all the cryptos following Bitcoin, Litecoin is among the top achievers.
The crypto was created in 2011 by Charlie Lee and has been staying high in the rankings ever since.
In a new tweet, Charlie Lee predicted that Litecoin (LTC) would overtake Bitcoin Cash (BCH) - one of its major competitors. THIS YEAR!

In contrast with the mysterious figure behind the creation of Bitcoin Satoshi Nakamoto, the founding father of Litecoin has been quite outspoken about his brainchild. In times of ups and downs alike, Charlie Lee is always there to stay, speaking in defense of and hope for his self-made cryptocurrency. Such devotion to work is understandable, especially when that work is a cryptocurrency that earns you millions. Two days ago, he posted just another typical tweet on Twitter regarding the future of LTC:

(Twitter.com)

What we see here is a post with two sentences followed by a graph of LTC and BTH’s market cap movements. For the first sentence, personally I completely agree, there is no beating the original. What matters is the second sentence, LTC>BCH. Whereas it is okay to be proud of your work, but comparing your work with other people’s work, that’s quite a sensitive thing to do. Thus, Mr. Lee must have some really solid reasoning to back up his statement, or his pride in his brainchild has been overblown. Either way, only time can tell, we as mere mortals can do nothing more than speculate using the available information and statistics to measure the accuracy of this tweet.

Concerning seniority, Litecoin has been in the game six years longer than Bitcoin Cash. While Litecoin was created in 2011, Bitcoin Cash was just forked from Bitcoin at the start of 2017. And their current positions? While Litecoin has been performing well over its course of existence, its initial appeal was quite modest compared to its new-born counterpart. As seen in the graph above, BTH quickly caught up and surpassed LTC in market capitalization, and has always gained the upper hand for the past months. Why is that? It is safe to say that sometimes success is merely about being in the right place at the right time. Aside from the same blockchain technology that Bitcoin utilizes, Litecoin built up its reputation pretty much on its own, not to mention its birthyear was 2011, when digital money was far from a hot topic for discussion. In contrast, Bitcoin Cash was given birth in the middle of the crypto fever. The whole world got their eyes on the crypto market and oh-so-coincidentally, there came a new coin based on the most well-known crypto ever, with bonus features to make the hash more fun. Clearly, Bitcoin Cash owes much of its successful kickstart to its predecessor.

However, BCH’s greatest strength is also its most fatal weakness, when Bitcoin goes down, so do Bitcoin Cash and other forks. Late 2018 was not so kind to the crypto market, and Bitcoin, the biggest one of all, was certain to fall the hardest. Its price plunged from the all-time high of $15000 to around $6000 in a matter of months.

Bitcoin fell from grace…*

Following the same pattern but on a smaller scale, Bitcoin Cash saw its price fall from $4355 to $764 earlier this month. While the level of market capitalization of Bitcoin Cash is still towering over that of Litecoin ($20,936,748,005 and $11,956,778,360, respectively)(Bitscreener.com), there is no guarantee the table won’t turn in the months to come.

… and Bitcoin Cash followed suit*

LTC>BTH, this comparison can be interpreted in two ways: Either Litecoin has an unturned ace in the deck to change the game in its favor, which is almost unthinkable for now; or, more likely, Bitcoin Cash will be dragged down to the level of Litecoin and below. Another speculation can be made, both of those assumptions are correct, but it is just too wild a guess to be true.

Besides the all-affecting market risks, LTC has lower risk than Bitcoin Cash*

Despite the volatile trait inherited from Bitcoin, Bitcoin cash still ranks fourth among its kind and is gradually recovering from its fall from glory. To outperform one of the top 4 cryptos in the world, Litecoin is supposed to have a lot of untapped potentials, whether that potential lies in the resilience to risks or profit-boosting capability. With his expertise as a crypto creator himself, Charlie Lee surely has some predictive power over the market. But if his prediction will manifest in an actual event or not remains to be seen. For owners of Bitcoin Cash and Litecoin alike, it is advisable to stay sharp now more than ever.