Bitcoin’s recent price rise to all time highs has been quite amazing. Not so much that it hit $6k but that it happened in mere weeks. Ethereum has been doing, well, nothing. My unqualified opinon is that the ICO market is capping ETH prices(read here). But whats Litecoins excuse?
The chart below shows just how much Bitcoin has risen since April of 2017. The little triangle shows when ICO madness started kicking in which I think keeps ETH prices down. Litecoin over this period has done absolutely nothing.
Yes its true that many people will sell the “alts” (litecoin, ethereum, dash et all) to buy Bitcoin during strong moves. But has Bitcoin exerts in dominance just what is the purpose of a “Bitcoin Lite”? This isn’t a knock on Charlie Lee the (creator of Litecoin) I just think originally he wanted to be the #1 crypto and he lost that game. Litecoin is often branded as “Silver to Bitcoin’s Gold”. Other coins like Dash say “this is why we’re better than Bitcoin“. Other coins like ZCash offer true anonymity.
Yes people wax poetically that Litecoin could be used for transactions in small denominations because Bitcoins transaction fees are higher – but I don’t think there is a big market for actual “spending” in Bitcoin. i.e. how many nerds are out there buying coffee with Bitcoin? I’d guess very few as everyone seems to assume Bitcoin is going to $10,000 plus in price.
In this moment there is no need for a “Silver to Bitcoins gold”. Litecoins network seems healthy if you check the stats. I’m not here to say Litecoin dies tomorrow. But I think if you’re speculating that its price will play “catch up” to Bitcoin you’ll have to wait a very long time (think mass crypto adoption). (Unless Bitcoin blows itself up with a forking or some other such catastrophic incident, of course).