Is Litecoin(LTC) Under-Evaluated or Under-Performing? | 22MAY17
Lately, all eyes have been on Bitcoin(BTC), Ethereum(ETH) and Ripple(XRP) – and who can blame them? While Bitcoin broke another record for all time high (of $2200 USD), Ethereum continues to power through the $180 mark. But where should we be looking if we are looking if we want to continue to exchange USD into cryptos? Are there other currencies which have historically been connected (more or less) to the performance of the crypto-worlds gold standard – and what has been going on with them?
If you guys haven’t guessed by now, we’re talking about Litecoin(LTC) here. I’m not going to bore you guys with the in-depth analysis as I did with Ripple(XRP), but I think that this is worth checking out.
Brief History
Designed by former Google software engineer Charles Lee, Litecoin was designed “to be the silver to bitcoins gold” by pumping out four times as many coin volume as bitcoin. As my fellow crypto-investors know, it worked, and Litecoin saw a near immediate mass market acceptance and thus, it’s performance historically closely tied to that of bitcoin.
01APR17 – 03MAY17
Regardless of the controversy caused by the announcement of SegWit, Litecoin prices soared from 0.006 (BTC) on 01APR17 to 0.014~ (BTC) on 03MAY17, it’s average at about 0.0112 (BTC) during this time.
07MAY17 – 14MAY17
This was an exciting 10 days for Litecoin. Coinbase began selling Litecoin and SegWit was successfully activated, pushing LTC’s average to roughly 0.0175~ (BTC). On 12MAY17 however, those numbers begin to drop to 0.0161 (BTC) average over the next two days.
14MAY17 – Present
LTC drops to a low on the 17th of 0.012 (BTC), has a brief 5 day bump back into the 0.013 range, then back down to it’s present at 0.010~ - making it the lowest it’s been since 03MAY17.
Under-evaluated or Under-performing?
Personally, I don’t see LTC going away because of SegWit. In fact, I believe that its value as a Usage coin will forever be tied to Bitcoin’s, especially if Bitcoin decides to integrate SegWit, that would likely send the LTC value to over $50, very quickly. As bitcoin inches closer to it's coin cap limits and Litecoin becomes more available for user in exchange for fiat, I think that we will see a 0.25 (BTC) evaluation.
Readers should do their own analysis, but I found this to be an interesting anomaly, and wanted to share. Let me know what you think is happening in the comments below, and what you're planning to do about it.
Update 23MAY17
Hello Everyone, I hope that you found this post interesting and that everyone was able to invest, as it looks like Litecoin(LTC) has jumped 28% since posting this article, back to .0137 (BTC) Thank you for you support and new followers - I will be sure to post more opportunities in the future. I apologize for not giving you guys a bigger heads up, as I started to suspect that there was a play on Friday, but didn't have time to throw together a post.
Definitely under-performing. It has everything that Bitcoin offers plus faster transaction.
It is definitely undervalued,even against the bitcoin.
I agree. I've been buying since Saturday.
It would seem like litecoin truly is like the silver of crytocurrency? It's performing very similarly compared to how gold and silver are. Silver should be price much higher just based on supply.
Ahh, I was planning a post about this as well! Maybe tomorrow or the next day, but, you're right. LTC will likely go up in market acceptance as more and more exchanges allow people to trade fiat > LTC. This is already starting!
If this started happening today, LTC would serve as a secondary base currency and be worth $611.11 USD (or 0.25 BTC)
Community to slow, if they get reducing fee using segwit in new exchange project or make DApp for a lightning version then it will go. Users are idiots, always remember this.
But we never know.. this is really stable but was over valuated for new big investors i think. ;)
I upvoted you, follow me I always follow back, let's carry each others, me too i love altcoins and litecoin :)
I'm quite new to crypto still, but with all the problems I've been hearing about with Bitcoin transaction overload and lag time, I wondered why Litecoin hasn't gotten more attention lately. Is it just losing to other proposed solutions like Ethereum and Ripple?
It may be only be loosing the battle for the spotlight! If you look at the transaction volumes, you'll see that people are likely offloading it to buy the higher performing cryptos. Personally, I like to look where everyone else isn't.
Yeah, looking where everyone else isn't is definitely the way to catch a coin before it moons. I'm gonna follow your blog closely to stay up to date on where your focus is.
Hey @adventureevryday, I'm glad that you enjoyed the article and hope that you were able to invest. Litecoin(LTC) jumped 28% after I published this article.
Nice, there are also a few upcoming events that will affect LTC price.
I will be doing a post about it soon.
Right on, I'll look forward to it and plan to cover this topic a lot in the coming days. Litecoin(LTC) is one of my favorite Usage coins right now.
i dont see bitcoin fixing itself anytime soon. i think litecoin is undervalued for that and that alone. but thats a big value deficit its about to make up for once bitcoins fees and waits spike again
What do you think will change that? More USD :LTC exchanges, like Coinbase?
I agree that LTC will always be tied to Bitcoin, and we will probably see and hear a lot more from LTC in the future !
I think you are brilliant with the maths. What I see is an untapped market and a crowd that wants more from their life.
for me it's still silver, like bitcoin is gold..it should go up, but it takes time and trust.
it certainly doe feel like silver!!! (and I'm a silver stacker!!)
I should be following your advice closely...recently haven't been able to do so. I could've been 28% richer. I guess, it's still time, so I'll buy some soon. Once again thanks for the advice!