RE: Bitcoin $2500 ----Litecoin Severely Undervalued? ----My Analysis
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.