As we know LTC has a very similar technology than BTC, but with one fundamental difference on his nature, the x4 feature: x4 coins (84M) , x4 speed (one block each 2,5 minutes), x4 block capacity (of transactions per block).
Also, another relevant difference is that LTC uses Scrypt as the encryption algorithm, unlike BTC which uses SHA-256.
This tech differences make LTC even better than BTC in some aspects.
But, far from the technical differences, there are no apparent causes to understand the huge price difference. Well, yes there are, BTC is very famous, even the dumbest of the class know it. It’s to be expected that any intelligent investor in BTC will also be in LTC, because if you are going to spend $ 50k on a BTC it is logical that you also spend $800 on an LTC. For all this, I predict that the price of LTC has a great route up ahead, I do not say it will reach $12-13k but at least 4k or 5k if the BTC keeps rising.
I don’t think that’s out of the realm of possibilities. My thinking is that would be 3 to 5 plus years. BTC has had 3 halving to LTC’s 2. 7200 LTC a day produced to 900 BTC. If BTC and LTC would have halved at the same time LTC would be at 3600 and looking at 1800 next halving. BTC had a couple year head start. As adoption and scarcity rise so should the price. As the alt coin craze and fomo settles down more money should flow back into the legacy coins. Anyway my plan is to keep adding and hold through 2 more halvings.
Currently were at the edge of institutional investors dipping their toe into this industry. Most people have only ever heard of Bitcoin. They see BTC and its market dominance. They don’t really know about the rest of the field. Lots of weird new names and tech. Some like Greyscale understand this space and bought A LOT of Litecoin. I imagine more will follow.
Yes, they bought a lot of litecoin from the individual perspective, but the amount of litecoin they own overall is nothing in comparison to how much bitcoin they are holding…
At this point I think they are distributing risk across multiple coins.
I do not think that you are crazy, those who want to buy take advantage, we all know what jewel is missing from the triology 1st place, 2nd place … 3rd place? celebrate what you have invested.
Limit orders are too simple, I guess you mean all kind of complex orders, and agree that that kind of orders make the depth of the market. But if Litecoin follows Bitcoin, it will raise for sure.
I think price is always determined by demand and supply. The same rule applies to crypto currency as well. The rise in the price of BTC is beneficial to all crypto currencies in general. But the price of LTC is independent as that will rise only when more people get into trading LTC and increase its demand.
One main reason is that the number of total Bitcoins that can exist is 21 million while the number of litecoins is limited to 84 million. Bitcoin is comparatively scarce and scarce resources tend to be valued higher and that leads to high prices as well. The popularity and demand for Bitcoin also contributes to the high price. Litecoin is becoming more popular because of the low transaction fees and speed of transaction. So, we can say that Litecoin will see a price rise in future.
Probably, a better question is why is DOGE coin the Merged-Mined Coin 2X the Price of Litecoin, when the Bitcoin Merged-Mined coin Namecoin is 1 to 20,000X difference in Price?
It’s easy, the Central Banks set policy, and by that it means to print money to “Set” Policy…
If you don’t have the Policy Set to place LIMIT ORDERS/Bids for an asset than it will be worth less according to it’s set policy, by the Bank of International Settlements BIS for short
The BIS controls the Policies of all the Central Banks of the world…except Iran and North Korea
Comparatively, the number of Litecoins is more than the number of Bitcoins. However , Bitcoin is more popular and has higher demand, which is why it has a higher price. We can expect to see the price of Litecoin grow in future as it is gaining more popularity.
Because of its higher supply and lesser demand compared to other cryptocurrencies, Litecoin has a lower LTC/USD exchange rate and weaker purchasing power. This is mostly a result of investor and consumer perspectives: if a medium of exchange can be used to buy more products, it has a higher value. People are more likely to pay more for a good or investment if they perceive it to have a higher worth. Currently, Bitcoin is valued higher since it is thought to be a more valuable asset.
The supply of litecoin is more compared to the supply of bitcoin. Because of its higher supply and lesser demand compared to other cryptocurrencies, Litecoin has a lower LTC/USD exchange rate and weaker purchasing power. Bitcoin has less supply and high demand - causing massive prices. Litecoin has less demand and high supply - which is why it is cheap.
