However, their worst fears are finally showing signs of becoming a reality. The Bitcoin, which almost kissed the $20,000 mark, went on a downward spiral until it found its balance somewhere around $15,000. Even there, it looks like it is not standing on solid ground as the day-trading markets have been tumultuous, and the bitcoin’s price is fluctuating tremendously throughout the day.
So, it is high time that the bitcoin investors find the next biggest altcoin that will take the lead and charge the markets across the world.
A large number of experts who are familiar with the world of cryptocurrency feel that Litecoin is that next big cryptocurrency. And, their belief is not without its reasons. Litecoin has shown some promising signs of being the most effective replacement to the highly volatile bitcoin, and become a global digital currency for everyone.
Here are some reasons why Litecoin is destined to be the next big altcoin.
Litecoin was one of the original clones of the bitcoin cryptocurrency. However, the word “clone” does disservice to this fantastic digital currency. Of course, it was modeled on bitcoin, but the developers of Litecoin plugged major limitations that plagued the Bitcoin platform. In addition, they made many improvements that will prove to be the defining factors in the success of Litecoin.
For starters, Litecoin’s makes use of the Scrypt protocol. On the other hand, the bitcoin network uses the SHA256 protocol. This is significant. This difference renders the mountains of hardware installed by bitcoin mining conglomerates unable to be used for mining Litecoin’s.
Thus, a few corporations or players cannot control the future of the entire platform, unlike in the case of bitcoin. Even the highly promising cryptocurrencies like Ethereum and Ripple are owned and managed by a handful of players, who have complete control over the future of those digital currencies. On the other hand, the absence of any major mining conglomerate on the Litecoin platform makes it more democratic and decentralized.
The Litecoin users find it the most stable among all the cryptocurrencies and hence, they will stick with it in the future and not jump ship when the prices fluctuate.
Easy To Upgrade
The Litecoin community has been more welcoming of any disruptive ideas that sought to upgrade and improve it. For instance, when the Segregated Witness was proposed as a way to make Litecoin transactions faster, the community embraced it.
That’s not all, the Litecoin community has consistently been able to improve the efficiency and effectiveness of the platform over the years. Plenty of businesses are realizing the innovative quotient of Litecoin and are adopting it into their ecosystems.
In fact, a number of retail shops that were accepting bitcoin so far, have started accepting Litecoin as a payment method as well. Even the renowned retailer, overstock.com now accepts Litecoin payments.
Zero Transaction Fees
One of the most potent reasons for many people to transact using digital currencies is the bare minimum transaction fees involved. In its early years, transacting using bitcoin was fairly cheap. In fact, it costs only a fraction of what is cost to make traditional banking transactions.
However, all of that has changed as the bitcoin’s price has gone soaring. Now, the transaction fees are as high as 1% or even more. Some websites charge as much as 4% of the transaction amount as fees. To call it unreasonable would be an understatement.
On the other hand, after the introduction of SegWit into the Litecoin platform, it is now ready to use the Lightening Network. The Lightening Network is being implemented on the Litecoin platform as we speak, and will be completed pretty soon.
Once that happens, users will be able to make Litecoin transactions at absolutely zero or near zero transaction fee. In fact, a test-order was recently placed for a purchase using Lightening Network and the transaction fee was 0.
Imagine being able to send money to your friend halfway across the world at absolutely no transaction cost. Business transactions would not entail payment gateway charges, which means that you can get discounts on the prices for making transactions with Litecoin’s.
Once the Lightening Network goes live, Litecoin will be the true digital currency that everyone had been waiting for since the dawn of the cryptocurrencies. There will be no stopping it.
Litecoin is a massively undervalued digital currency at the moment. In fact, it is one of the very few that are undervalued. The reasons are plenty. For one, the Litecoin platform is not affected by speculative trading as much as bitcoin. There are many reasons for bitcoin’s instability. Much of them arise from the way the platform is structured.
A few groups of developers and mining conglomerates have a disproportionate say in how the platform’s future will pan out. When the platform has faced emergencies, their overarching power and control on the platform has proven to be a problem. For instance, the bitcoin platform has suffered multiple hacks and the hackers have made away with billions of dollars’ worth of bitcoins.
Yet, there was no cohesive action plan formed. For this reason, bitcoin has undergone multiple hard forks. One single cryptocurrency has forked into many. The community members never know when or which emergency will result in another hard fork.
Litecoin, on the other hand, has not suffered any major hacks like the bitcoin platform. This makes it a much safer alternative to bitcoin. Secondly, the creator of Litecoin, Charlie Lee, has been refreshingly transparent about his vision for the platform. In order to promote decentralization of the platform, he has released much of the Litecoin’s that he had held as the creator of the platform.
So, the community members are not in for a rude shock from any corner here. So, the Litecoin platform does not witness the highs and lows that have become characteristic of the Bitcoin platform. For cryptocurrency users who are looking for a stable alternative, Litecoin is the obvious choice.
Let’s take a look at some basic economics of a market. The market prices are decided by the tussle between demand and supply. The cryptocurrencies are not in unlimited supply. When bitcoin was launched, the original developer/s put a cap of 21 million coins on the platform, which means that the number of bitcoins can never exceed the 21 million mark. But, more and more people continue to buy bitcoins.
As the supply is limited and the demand is ever-increasing, the bitcoins price has been soaring for the most part of its existence. Even if the present bitcoin bubble does burst, its price will only increase in the long run as its adoption increases. Currency, the price of one bitcoin is hovering around $15,000.
Now, take a look at Litecoin. Its original developer set the cap at 84 million, which is four times that of the Bitcoin platform. So, there are 4 times as many Litecoin’s available in the market as there are bitcoins. With simple demand-supply rationale, we can see that the price of a Litecoin should be somewhere around one-fourth the price of a bitcoin.
Is it? The current price of a Litecoin is just shy of $300. That’s nowhere near one-fourth the price of bitcoin or about $3,750. In essence, the Litecoin platform has the potential to grow by up to 12 times its current size, until it reaches $3,750.
It is because of this huge undervaluation that the supporters of Litecoin have not been taking out their money from the Litecoin platform and pouring it into bitcoin. More importantly, as the signs of the bitcoin’s bubble burst are becoming increasingly clear, the investors, users, and the businesses will want something more reliable and stable to adopt. For them, Litecoin is the perfect candidate.
Litecoin’s popularity is growing among the cryptocurrency veterans and the people who use digital currencies to make transactions.
Once the bitcoin bubble goes bust, the signs of which are already surfacing, cryptocurrency users will fall back to a currency that is stable, and has lower transaction fees. For them, Litecoin is the future.
Therefore, a lot many seasoned cryptocurrency fans have invested in Litecoin’s and are waiting patiently for the coin to deliver its explosive performance. Sooner or later, it will happen.