Since the emerging crypto asset class is much like venture capital with liquidity, performing a quick market size analysis can provide insights into potential fundamental asset value.
Litecoin (LTC) is a global decentralized cryptocurrency. Litecoin was an early clone of Bitcoin, and is widely accepted in many places where Bitcoin is accepted. Litecoin has been known in some circles as the “silver to Bitcoin’s gold”. As a peer-to-peer cryptocurrency, Litecoin can and is used to transact goods and services without the need for intermediaries.
Recently Litecoin founder and foundation Managing Director, Charlie Lee, has announced some interesting strategic moves. Litecoin is positioning itself in the payments space and will likely compete head on with Bitcoin Cash. Since the Bitcoin Cash community is at odds with the Bitcoin community, Litecoin may be successful in positioning itself as the “silver to Bitcoin’s gold” (complimentary currency).
No, but the asset has a long history in the space (one of the oldest) … neutral
Yes, the technology is in use…positive
4. How strong is the technology’s differentiator (Strong, Mediocre, Weak)?
Mediocre, known as a complimentary cryptocurrency to Bitcoin…neutral
5. How competitive is the industry the asset is entering (Strong, Mediocre, Weak)?
Litecoin is a decentralized cryptocurrency complimentary to Bitcoin. Due to being a peer-to-peer technology without a central organization controlling its supply (which is set to a specific finite amount), Litecoin is independent of banks and the nation state unlike fiat currencies. Therefore, Litecoin does not have the risk of being debased through policies such as “Quantitative Easing” (QE). These are many of the same advantages of Bitcoin. Bitcoin has become the premier cryptocurrency, while Litecoin is viewed as similar but not as sought after. If Bitcoin is “digital gold”, then Litecoin is “digital silver”. As such we can apply the historic Silver to Gold ratio, to Litecoin and Bitcoin in order to build a price target for Litecoin.
Given the assumptions (above) the 2-year Litecoin (LTC) price target is given below:
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