Litecoin (LTC) is currently my top alt coin pick. It is a solid coin with a devoted community that is being heavily overlooked because people are addicted to “Change the World” narrative hype coins. Litecoin is certainty not the sexiest crypto coin; but I’d argue that it is one that is well positioned to take advantage of the current crypto environment. It’s also partially being overshadowed by it’s similarity to Bitcoin which is misinterpreted as a disadvantage.
Given Bitcoin’s ongoing scaling debate coinciding with dramatic growth of new users entering crypto; we have seen slow confirmation times and high transaction fees going from being a nuance to being problematic. This is ultimately going to incentives and encourage people to look into other alt coins as an alternative and Litecoin is going to be on the top of that list. Not only is Litecoin already available on most major exchanges and more recently Coinbase, its simplicity and similarity to Bitcoin here is not a downside but an advantage. Being similar to Bitcoin makes it easier for new users to understand thereby reducing the friction for adoption. It also makes it significantly easier for merchants which are having problems with bitcoin’s long confirmation time and high transaction fees to port over to Litecoin and implement it onto their payment platform.
On a comparative basis, I don’t believe Litecoin’s price ($25.80 or 0.0111 BTC) currently reflect it’s potential for network effort growth because of the misconception that Litecoin’s similarity with Bitcoin is detrimental to Litecoin’s future when the truth may just be the opposite. The recent selling pressure is more likely driven predominately from Bitcoiners that moved to LTC trading back to BTC after news that it might activate Segwit with a hardfork. The activation of Segwit on Bitcoin however is not necessary destructive to Litecoin as it would allow for LTC and BTC to be atomically swap through the lighting network.
Litecoin’s Differentiating Features
- Four times the number of coins resulting in faster transaction time
- Activated Segwit (Segregated Witness) already and has plan to implement lighting network
- United community without the political baggage of Bitcoin
Disclosure: I am long on Litecoin. I am not a financial adviser, article merely expresses my own opinion.