Litecoin (LTC) ranks as the 5th cryptocurrency by market capitalization, behind Bitcoin, Ethereum, Ripple and Bitcoin Cash. Founded in 2011 by Charlie Lee, the crypto has had a relatively quiet time on the charts. It has been overtaken by the others above it price-wise, something not helped by its likeness to Bitcoin. It seems the bitcoin shadow was too dark for LTC to be visible. But that is set to change in 2018, according to experts in crypto-markets.
Actually, this coin that is often referred to as “silver to Bitcoin’s gold” has had a remarkable year since March 2017. Its price is projected to have grown steadily by up to 3900%. Picture this: LTC was valued at $4 early 2017, but rose in value to hit an all-time high of $367 before dipping to today’s $186. If we consider the fact that its value has risen considerably, then it’s possible to say everything has been great. However, price movements of peers indicate they could have done better. And that is why we ask whether Litecoin could emerge from Bitcoin’s shadow. It seems a huge task, but this is cryptocurrency and impossibilities can be flipped upside down within a second.
Can Litecoin beat Bitcoin to top spot?
Bitcoin aficionados will tell you never. If we take it on the face value, then this bullish assertion can’t be disapproved. Bitcoin is bigger and extremely popular as compared to its less illustrious competitor. Bitcoin will remain as the standard bearer of cryptocurrency. While BTC will, therefore, continue to rule the world of cryptocurrency with what it can achieve as a payment method, LTC is silently clawing itself into recognition. And the target is to be the next best digital payment currency.
Why it’s possible
Two things set Litecoin apart and slightly ahead of cryptocurrency’s leading coin. They both have to do with their platforms or networks. Bitcoin may be popular but it is beaten in terms of transaction speed and transaction cost. It is here that Litecoin (LTC) becomes suitable as a payment method. And it is thus used by traders and SMEs. Everyday shopping and micro-payments are more appropriate with LTC than with BTC due to the costs involved and time that is taken to complete a transaction.
Bitcoin’s popularity indirectly helps Litecoin
One major factor that can play into its hands is the exponential growth of Bitcoin. The popularity of BTC means people flock to its network leading to congestion and the network slowing down. Merchants looking for an alternative find none has the appeal that comes with crypto’s number five coin.
It would have been even better for Charlie Lee’s project had its LitePay launch happened. What we mean here is that of all the coins in the top 10 on coinmarketcap.com, Litecoin has the best chance of being adopted as a payment currency. It is a possibility due to the continued adoption of cryptocurrency as a payment option.
Experts agree on this. DailyFX’s Nicholas Cawley thinks Bitcoin will always be number one. For him, Bitcoin Cash is a more realistic target to be overtaken in 2018. He believes that Bitcoin has achieved critical mass, drawing investors and merchants to its side. While speaking to Express.co.uk, he expressed feelings about the possibility that Litecoin could become better than Bitcoin Cash.
“I think Litecoin will overtake Bitcoin cash but in the market, capitalization terms will struggle to overtake Bitcoin,” Mr. Cawley said.
“Bitcoin Cash has just under 17 million tokens in circulation against a maximum of 21 million, while Litecoin has 55.5 million of a maximum 84 million in supply, so if prices remain the same Litecoin’s market cap will grow faster than Bitcoin Cash.”
So, overtaking Bitcoin is not going to happen. That leaves Bitcoin Cash in LTC’s firing line. XRP and Ethereum seem too big for it, at least not in the foreseeable future.
Even though that is the case, remember that BCH has a better price value. Popularity-wise, it’s the opposite. Bitcoin Cash won’t have the appeal the other two coins have and therefore, if Bitcoin will remain as a preferred store of value, Litecoin will become the go-to coin for day-to-day transactions. Think about retail as well as small and medium enterprises.
Andrei Barysevich, who once famously said that Litecoin was now the second most favored coin on the darknet, sums it nicely.
“Bitcoin is not going anyway, everybody knows about bitcoin, in my view, it is going to remain as a gold standard. People will continue to use and continue to store money in bitcoin,” he said.
“However in day to day operations, I think Litecoin is to become more dominant currency, as soon as we start to see established e-commerce websites accepting Litecoin, that’s the time when I think Litecoin is going to dominate bitcoin cash.”
There you have it. Let us know what you think about Litecoin (LTC).