Litecoin (LTC) has limited potential and is unlikely to fulfill its promise to be the silver to bitcoin gold. Entrepreneur and blogger Sylvain Saurel’s recent arguments show that LTC has lost momentum and significance.
Litecoin has benefited from Bitcoin’s rally
Litecoin caught the price momentum at the right time and spent a long time in the wake of Bitcoin’s fame, commented Saurel. LTC founder Charlie Lee used the primary Bitcoin code with some optimizations for LTC, promising a faster and cheaper network.
But just as the cryptocurrency reached its peak in December 2017, Lee sold all of his holdings – at the highest price of the over $ 350 coin. This decision irritated the community and has cost Lee many believe his reputation.
The other reason why Litecoin becomes irrelevant: Bitcoin does not need “silver”. BTC as a stand-alone coin is both value store and network for relatively fast transfers. Despite temporary overloading, Bitcoin enables transactions of economic value – and LTC is only slightly faster.
Saurel about Litecoin:
“Litecoin will certainly remain in the top 10 cryptocurrencies for some time to come, but its future is clearly not alongside a bitcoin that could revolutionize the monetary and financial system in the future.”
LTC prices go through ups and downs
Litecoin’s behavior is inherently volatile as the Coin moved from a peak to a late low of $ 22 in 2018 and returned to pre-boom 2017 prices within a year. Thereafter, Litecoin jumped over $ 140 again before disintegrating and reaching $ 45.67 in December 2019.
In 2019, LTC was able to benefit from the significant hype by halving the block premium. But the price peaked about a month before the event and erased most of the gains in the second half of the year.
Saurel concludes: Litecoin is not required to diversify the portfolios of crypto traders. In 2020 he expects increased interest in BTC investment, but without the need for an “escrow-coin”.
Nor does LTC have the same potential for price increases – as evidenced by several cycles of ups and downs. So far, Litecoin has not lived up to the hope of four-digit prices, so there’s no justification for calling LTC in the same breath as Bitcoin.