Bitcoin has been grabbing all the headlines over the last week or so on the back of its reaching all time highs just shy of $20,000 a piece before correcting to current levels in and around the $16,000 mark at the end of last week.
Another coin, however, has increased in value by a substantially higher multiple this year than has bitcoin – Litecoin. This week, Litecoin reached $150 a coin for the first time ever. On some of the more liquid exchanges, it’s going for as high as $190 a piece. At the start fo this year, LTC went for around $5.
Why is this a big deal?
Many reading will likely have seen other so-called altcoins and ICO tokens run further this year and – as such – might be inclined to ask why a 3,000% or so run in Litecoin is that big a deal. The answer is rooted in prominence. Litecoin may long have been deemed the silver to bitcoin’s gold and – sure – over the past few years, it hasn’t gained anything like the traction that bitcoin has gained from a mainstream awareness and adoption perspective.
As we said last week, however, this is more to do with the driving forces behind the coin than it is to do with anything else and, with this disparity in scale of push between bitcoin and Litecoin closing of late, things are rebalancing.
Charlie Lee, the guy who created LItecoin, is now behind the drive for mainstream adoption full time. Previously, he was tied up as an engineer at Coinbase. While he was at Coinbase, a billion-dollar industry sprung up to drive the price of bitcoin upwards and, as the numbers above show, has been incredibly successful at doing just that.
We think Litecoin is next in line for this push.
The thing is, Litecoin is superior to bitcoin in many ways. It’s lighter (from an efficiency perspective), it’s quicker (from a transaction verification time perspective) and it’s far more durable in the sense that it can handle a maximum capacity of 56 transactions per second (while bitcoin can only handle seven and Ethereum can handle just 15).
As bitcoin adoption increases, transaction fees increase based on the difficulty rate associated with transaction verification increasing. At the same time, processing time increases (it shouldn’t, inherently, but it does as the Mempool gets flooded).
In turn, then, as bitcoin adoption increases, the problems associated with its widespread use are going to increase in prominence and – at the same time – people and companies are going to start looking for alternatives. Litecoin is an incredibly stable coin with a dedicated and very large following and, at the same time, has an established network of nodes in place that are processing transactions (mining).
It stands to reason, then, that as bitcoin adoption increases, the necessity for an alternative should arise. Litecoin provides one of the best, if not the best, alternatives in the space right now, so we can expand on the previous sentence and say that as bitcoin adoption increases, the popularity of Litecoin should increase.
While many won’t highlight this connection as being one of the primary reasons that Litecoin is rising in line with bitcoin, it very much is.
So what comes next?
We expect the current correction in bitcoin to translate to some Litecoin buying and – if this is the case – we don’t see Litecoin dropping back below the $150 mark anytime soon, if ever. As the overarching trend reverses to the upside in bitcoin, we expect Litecoin to track the trend and – with the added bonus of Lee’s presence pushing for mainstream adoption – we think there’s an awful lot of run room left for Litecoin going forward.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of BTC Keychain via Flickr
Blockchain technology outshines Bitcoin and Gold during global pandemic
As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.
However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world.
Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.
What is blockchain technology?
Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see.
Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).
Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…
Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…