LTC, The Silver to BTC, Will Make Its Move Next?
Posted: Aug 13, 2020
Litecoin is one of the oldest altcoins in our history. Launched in 2011, Litecoin has always been the younger sibling of Bitcoin. Everything looks similar, although it still has fundamental differences. Impressively, Litecoin has always managed to stay on the top 10 crypto rankings despite other altcoins come and go.
Recently, there hasn’t been much talk about Litecoin. It stays under the radar for quite some time. Will it make its move next in Q3 and Q4 2020? This article analyzes such a possibility.
How Litecoin Got The Title "Silver To Bitcoin"
Litecoin was designed to be the younger sibling of Bitcoin since the very beginning. Unlike many Bitcoin forks, Litecoin never actually had any kind of "debate" within its community. The journey of Litecoin has been relatively smooth compared to so many other cryptocurrency projects out there.
Litecoin has some fundamental differences to Bitcoin, such as its Scrypt mining algorithm (as compared to Bitcoin’s SHA-256). However, the basics are similar. Both of them use Proof-of-Work consensus, and both of them are only capable of value transfer. Litecoin also has its own halvings mechanism, just like BItcoin. No smart contract capability and other fancy things that newer gen blockchains are able to do.
However, the similarities to Bitcoin are also the reason why Litecoin can manage to stay on top. Many people start to see it as something that will go up as soon as Bitcoin can maintain its relevance. That’s why Litecoin, despite its shortcomings, is still relevant in today’s super tight competition in the crypto space. Most coins from the 2011-2013 era have failed to stay on the top of crypto rankings. Litecoin has done something that is not easily achievable.
What Next For Litecoin
If you look at the chart comparison between BTC and LTC, you will realize they have so much more in common. Technically, you can say the same thing about BTC and other top altcoins, but LTC has much more similarities when it comes to price action. There are probably a few altcoins that often mimic BTC movement the most. They are Litecoin, Bitcoin Cash (BCH), and to some extent, Bitcoin Satoshi Vision (BSV).
From all of these coins, LTC has been less controversial as it did not start as any kind of fork. It has been "loyal" to the price movement of Bitcoin. Many Bitcoin enthusiasts also a portion of Litecoin (LTC) and vice versa.
However, it must also be acknowledged that recently LTC hasn’t been doing that good compared to many other altcoins. For example, look at Cardano (ADA) or Ethereum (ETH) where both of them successfully pumped heavily in the past 2 months alone. Litecoin, however, is a bit too slow.
Here’s the good thing. Litecoin usually pumps months after Bitcoin achieves new high. At least, that’s what has been happening in the past. Whether they can do it again this year, we still don’t know. But all indications have proved that it will be able to do so, once again.
Recently, when Bitcoin pumps, many alts (including ETH) often go down at the same day that BTC pumps. However, BCH and LTC have held their ground quite firmly. Admittedly, it also means that both BCH and LTC might not pump a lot when ETH and other alts are having their field days. Still though, it’s a good bet to hold LTC assuming BTC can keep going further.
The Bet Against The Fiat Economy
Both BTC and LTC seem to be poised to keep pumping this year (and perhaps next year as well). After all, we are having a financial crisis this year, which is already bigger than 2008’s financial crisis. With the Federal Reserve making a huge bet with money printing and wall street loans, it is possible that the dollar value will keep devaluing, as proven by the recently high gold price.
If BTC can prove its point as the next-gen "digital gold", Litecoin would be able to prove itself as the digital silver. And if you are interested to invest in LTC for the long-term, you might want to watch out for its upcoming 2023 halving.
A strong blockchain advocate, crypto enthusiast, and secretly hoping crypto will go mainstream