Analysis: Litecoin

Litecoin LTC

Global decentralized currency.

1. What is it? 
Litecoin is a peer-to-peer, global decentralized currency that can be used to to purchase goods and services. It is fundamentally similar to Bitcoin, but they differ drastically when it comes to particulars behind them. Litecoin promises cheap transactional costs for sending and receiving cross border payments. They claim to have a better rate of transactions and storage efficiency than Bitcoin. Litecoin is an open source software licensed under MIT/X11 license which enables users to Run, modify and distribute the software.

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2. FIT Test (F: Future updates; I: Innovation; T: Trends): FIT Test enables us to check the uniqueness, alignment with respect to the current trends and future update of the fundamentals of the corresponding cryptocurrency.

A) Innovations:

i)Open source: This empowers skilled developers across globe to work on the software which in-turn expands the developer/miner community.

ii)Blockchain: The Litecoin blockchain claims to be capable of handling higher transactional volumes than bitcoin. Frequent block generations (~2.5 minutes/block; Bitcoin: ~10 minutes/block), which allow the Litecoin network to support more transactions with seldom need to modify the software, help support their claim.

iii)Wallet encryption: Wallets are encrypted using Scrypt algorithm, unlike SHA256 which is used by Bitcoin. They ensure secure transactions which check identity as a preliminary step before transacting LTC.

iv)Mining reward: Miners are awarded with 25 new LTC per block, an amount which  will halve itself every 840,000  blocks which rounds up to roughly 4 years.

B) Trends: Decrease transactional costs cross border trades.

C) Future updates: Charlie Lee, one of the creators has returned to the development team. There is a major announcement due on 1st of August which also marks the UASF finale for Bitcoin. There is a possibility of a lightning network announcement for Litecoin. Could this be the countdown? http://litecoin.mit.edu/

                                              Litecoin – The ‘Silver’ of the Cryptocurrency market

 

3. Community:

A) Charles Lee: The man behind Litecoin is a well experienced personality in the cryptocurrency ecosystem. The former Director of Engineering at Coinbase, is also the brother of Bobby Lee, CEO at BTC, a leading crypto exchange in China

B) Bobby Lee: CEO, BTCC and one of the board of directors of the Bitcoin Foundation, also the former VP of Technology at Walmart, China (E-Commerce) could pose as a major contributor for the large-scale adoption of cryptocurrency to match the fiat currencies in China. BTCC recently launched Litecoin mining pool to attract miners.

C) Mr. PZ: The secretary-general of global LTC Roundtable has succeeded in promoting LTC at various events in China. He is also one of the major Chinese blockchain evangelists.

4. Downside/Risks:

a. Litecoin is progressing with a great momentum, it is difficult to say what will decrease their ever increasing momentum but one could never overlook the threat which resides due to attacks to slow down or derail the could be “lightening network”.

b. Marketing is one of the non-existent risk at the moment. After signaling SegWit, the rate at which LTC was  induced in markets was lesser than one could have expected. LTC did not exist for most of the mobile wallets. But as they say, things of great value don’t need great marketing, we stand today with major wallets allowing LTC  transactions.

5. Future:  Litecoin has successfully signaled SegWit unlike Bitcoin which will face a verdict on 1st Litecoin is also reportedly testing it’s lightening network which could revolutionize its value. There are speculations that the lightning network announcement will happen on 1st of August along with Bitcoin’s ‘fate decider’ announcement.

6. Technical analysis:

Technical analysis for LTC indicates that it has corrected itself quite quickly as it has soared. One could wait to get in at the Optimal trade entry. Since the fundamental features of the technology behind this claims to be better than the one behind Bitcoin and by far it has done everything to prove that claim right, this is surely in the league for the long run. A speculation of a $100 mark achievement by December 2017 is not too bold for this crypto.

Following are the statistics inferred from the technical analysis:

i) Risk/Reward Ratio: 1.11

ii) Optimal Trade Entry (OTE): 0.0192-0.01884 BTC

iii) Market Cap: $ 2,633,087,671

iv) Price: $50.71 / 0.0 1961740 BTC

The ideal Risk/Reward Ratio tends to 2. You could either wait for it to enter the OTE area or get in right away and enjoy the ride.

7. Comments: Litecoin’s blockchain capabilities, miner support, coin limit, block reward patterns make it better than Bitcoin which is shy of SegWit Activation which it may or may not achieve. A wise investor would surely add this so called ‘Silver’ to the Bitcoin which is the ‘Gold’ in the cryptocurrency market [/expander_maker]

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