The bull case for Litecoin

I have been ‘into’ (i.e, obsessed with) cryptocurrency for a little over a year now. I’ve learnt a lot, but something I noticed rather early on was this all-pervading desire to replicate Bitcoin’s legendary rise from cents to tens of thousands. Much of the retail cash inflow into crypto comes from curious (and money hungry) people who are enticed by the hope that they can get in on such a parabolic rise.

This speculation works for some, but most new money is simply not suited for it. There is an alternative, however; and nobody is talking about it.

Why Litecoin?

1: Institutional demand

Litecoin is amongst a select few tokens being bought by the likes of Microstrategy, PayPal, and Grayscale; who bought 80% of the supply of tokens mined during February of this year. These trades were completed OTC (over-the-counter, i.e not through an exchange) and may not be reflected in the price of Litecoin for some time.

Demand for LTCN (Grayscales’ Litecoin trust share) caused it to trade at an 1800% premium.

LTC is also trusted by smart-money, who will often favour older, well established large caps over more speculative altcoin plays. This is an important factor, as crypto is still viewed by traditional finance as highly risky and/or legally dubious. However, a significant number of institutional giants have already demonstrated their eagerness to get in on the current bullrun, which could easily snowball into a ‘digital goldrush’ for crypto in the medium term.

2: A possible direct upgrade of Bitcoin

I don’t want to trigger Bitcoin maxis, but I think that it’s probable that Litecoin could be Bitcoin’s superior. For those who know little about it, here’s the rundown:

84 million maximum supply- This is four times the maximum supply of Bitcoin.

Faster transaction speeds- Litecoin’s block time is only 2.5 minutes, (four times faster than bitcoin’s 10 minutes).

Launched in October 2011- Making it one of the oldest, most well established cryptocurrencies.

Litecoin is functionally similar to Bitcoin, but provides a much faster system to transact with and is therefore more attractive for e-commerce.

3: Bull run timing

In previous bullruns, it was observed that after Bitcoin tops out, money flows to the rest of the market as buyers look to add to their gains. Therefore, altcoins such as Litecoin can expect to undergo some serious growth during this period, many of which have already soared past their previous all time highs, such as Cardano, which recently broke its 2018 top of ~$1.18.

However, Litecoin has so far flown well under the radar, and is yet to break even 70% of its all time high of ~$360.

Being the second oldest coin in the top 10 (by marketcap), Litecoin has consistently proved itself to be robust enough to survive the ups and downs of the market. At the time of writing, it is currently sitting at around $180, 25% off last months high of $240, before the market underwent a Bitcoin-lead correction.

Obviously, none of this is investment advice, but I truly believe that Litecoin is one of the most undervalued large cap projects right now. And once the recent sell pressure/uncertainty in the market subsides, I reckon LTC is in for some serious upside.

Thanks for reading, if any of this information is incorrect please contact me and I’ll rectify it.