Bitcoin $2500 ----Litecoin Severely Undervalued? ----My Analysis
BITCOIN IS ON MASSIVE BULL RUN... Volume is coming in from China, after being down graded by Moodys.
But its too expensive to buy for the regular guy. Let's take a look at another alternative coin which is severely undervalued.
Im talking about, Litecoin.
Lets do some simple math and fundamental comparisons.
Now, I know there is a difference in circulating supply and so forth, but lets use these cryptocurrencies limited supply limits for a comparison.
Limited Supply:
Bitcoin Supply - 21,000,000 BTC
Litecoin Supply - 84,000,000 LTC
Litecoin has 4x more coins than bitcoin. Same protocol, same type of algorithm that is heavily encrypted, only difference, supply limits. Lets not also forget Litecoin activated SegWit (faster transaction speeds and confirmation times) just last month.
Bitcoins current Price : $2500
Litecoins current Price: $33.00
Bitcoin Market Cap: $41,928,594,000
Litecoin Market Cap: $$1,673,465,512
See the major disparity? If you take bitcoins current price and divide it by 4, Litecoin should be worth $625.
But lets use the most conservative math. If you were to take Litecoins' Current Price and multiply it by 4 you'll get an evaluation of $132. Which would bring its Market Cap to $7,128,000,000 Billion. Still this would be under Bitcoins' market cap and Ethereum.
Now if your an investor, it doesn't take much brain power to ask yourself, if I want to make an investment and let say my goal is to double my money, which coin has the better potential to double my money? In order for Bitcoin to double my investment, it would have to go up another $2,500 vs if I were to invest into Litecoins', it only has to go up another $33.00. Which can happen faster?........ This is self explanatory.
Fundamentals:
Litecoin has a strong development team, working on numerous projects. Has been the first coin in the space to really implement real change into a blockchain. I'm referring to when Litecoin activated SegWit just last month, it was a success! This has allowed Litecoin to be scalable to the masses and give users faster transaction speeds/confirmation time. It has also allowed room for it to add unique features such as privacy and the lightning network. Now today, we learned Bitcoin is following suit, which may take 6 months to fully implement. The Bitcoin community has been in a battle for quite some time to figure out in which direction it wants to go. Whether they want to stick with Bitcoin Core, move to Bitcoin Unlimited, or SegWit. It looks like SegWit has won that battle. This would be a soft fork, not a hard fork, of the existing blockchain.
Litecoin has also been referred to as the Silver to Bitcoins Gold Standard. -----To conclude. Based on the fundamentals, the bold actions taken by the Litecoin Dev Team, SegWit Activation, Future Implementation of the Lightning Network, and its severely undervalued price, I strongly believe that Litecoin will be catching up and may very well even pop and go parabolic as the smart money tries to find the next undervalued investment.
Disclaimer:
Everything in this article is not investment advice. This is solely my opinion. I currently do own a position in Litecoin at $30.00 as I rolled over my profits into something that I feel, in my opinion, is undervalued. Please due your own due diligence before making an investment. Investing does involve risk and/or loss of capital with potential of great rewards. Please invest on your own due diligence.
P.S.> Leave a comment and let me know your thoughts. If you liked the article, upvote and/or resteem to share with your followers!
Best Regards,
-MobileCeo
Excellent work dear friend @mobileceo very interesting, it is amazing how they have been moving all crptomonedas, very practical the report you present, thank you very much for sharing this amterial and your experience.
Thank you @nano2nd. Anytime! Thank you for leaving your comment.
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Promoted! ;)Interesting point, but don't forget that bitcoin is the most supported crypto, and that there is 100's or 1000's of clones like litecoin. What makes litecoin stand out?
Yes, but ask yourself this, which has been around longer? Investors will go to the coin thats been around to stand through the obstacles that Bitcoin has gone through. Which would you feel safer, Litecoin or some new crypto currency which doesn't have much of a track record?
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speed and affordability...a substantial community in Asia. But you might be right...I cant wrap my head at why LTC isnt at 500 right now!!
Yes, also same algorithm. Also I just received word that BitStamp will be launching LTC in the UK in June.
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your analysis is right but , we are really in unpredictable stage right now. Many of people in the crypto market is going after BTC because of the popularity and old history, even many don't know there are other coins exist, main are investing without understanding anything about cryptocurrency and blockchain just for profit, that is fine for me . Yes, LTC is undervalued, it only need is a wave to reach that point, let's hope it will come soon. If btc soon don't solve it slow transaction and high fee then it will happen with in few month.
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aww thank you @lautenglye, thats very kind of you. Thank you for the support. Just doing it for the community
:-)
u r welcome...
I agree!
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I agree that Litecoin could have potential, but I disagree with your notion that valuation of currency is necessarily based on total supply. The value of any asset is based on what people are willing to pay for, not how much of it is available. Just because Litecoin has a larger total supply doesn't mean it will automatically be more valuable, even with the current growth.
I think Litecoin has some good things going for it like you mentioned with Segwit activation and the lightning network - those can definitely make it more valuable. It's kind of hard to tell where it will be in the future though - I personally think there are some benefits to Litecoin over Bitcoin, but we'll have to see longer term if the market shares that same perspective.
@xerdo, thats not the angle im looking at these investments, im looking at these investments at the fundamental level of technology. They both are ran with the same algorithm but different supply. Litecoin was a copy of bitcoin with a change in supply. I believe as Bitcoin climbs, it should make Litecoin rise in value, Litecoin has been lagging, and has to catch up as Bitcoin rises. Yes, I understand, its based on technology and development and potential for commercial use and so on. When Litecoin activated Segwit, they surpassed bitcoin in development. Its just at a great value in comparison to the entire market.
Yeah I can kind of understand that - Litecoin is more palatable right now to the average investor at a price of $30 vs Bitcoin's $2400+, and there is definitely something to be said for having a larger supply of coins, even if they are divisible into smaller amounts. Litecoin has historically trailed behind Bitcoin in market price too.
I guess what I mean more is that if you look at the recent price graphs, Bitcoin goes almost straight up while Litecoin has been floating around $25-$32 or so during the same period, which indicates to me people aren't as sure about it. I think Litecoin could continue to climb with Bitcoin, I'm just saying it's not a guarantee.
Are there any major corporations or projects interested in Litecoin?
Fidelity will be adding Litecoin, Bitcoin, and Ethereum to their website for investments integrated through coinbase. Giving Fidelity account holders access to these coin in Q3 2017
I'm really curious to see what will happen with this, hopefully it will continue to grow confidence in the technology and maybe we'll see more investment then.
No. But I might agree that it could be a good value pickup.
While litecoin has some things going for it.
You can't simply divide btc by some number and assume it's undervalued. You need to look at utility, stability, and innovation. BTC & ETH have had the edge in these areas.
As it stands now LTC is going to be poised with an opportunity to gain. With BTC inevitabley hardforking making BTC less stable and value split between 2 different coins. So it may be a good coin to buy and hold for a few months.
I agree choosing lesser known cryptocurrencey will be more prosperous than bitcoin and will be looking at investing in litecoin and ripple
@danielzandberg great on Litecoin, Ripply ehhhh just know that the banks own 70% of the outstanding coins, making it very centralized.
@tkntobfrk - its not just some number, its real math. As Bitcoin prices out the little guy, which there are more poor people that can afford a $30 coin vs a $2500 coin and are looking for growth, you must look at Litecoin. From your perspective of utility, stability, and innovation; Litecoin has a strong track record in all 3 categories and surpasses Bitcoin in those categories arguably. But thats what makes a market, opinion and speculation. Its wise to zoom out and look at the fundamentals, its the same technology, algorithm, a copy of bitcoin with a slight change in supply. Litecoin activated segwit which already makes it more innovative than Bitcoin. You will see, as the bitcoin market prices out the little guy, Litecoin is going to look more appealing.
Also in some news - BitStamp will be launching LTC in UK sometime in June. Fidelity will be adding all 3 - Bitcoin, Ethereum, and Litecoin to their web platform, to give their users access to these investments in the Q3 2017.
BETWEEN ALL 3 - Litecoin is the winner when considering price to value.
Thank you for your comment. Im sure there are many that share your opinion. But I strongly believe this coin can absolutely double from where its at now.