InvestorPlace Assistant Information Author Brenden Rearick puzzled in early Could if Litecoin (CCC:LTC-USD) would maintain transferring larger after buying and selling volumes have been greater than 140% larger than normal.
My colleague offered LTC price predictions that ranged from $500 to $762 by the tip of 2021. For a time, it regarded as if these guesstimates could be fairly darn correct as LTC shot as much as an all-time excessive of $412.96 on Could 10.
After which the wheels fell off because the second half of the month started.
Having dropped 35% within the span of 4 hours on Wednesday, it has misplaced round 50% of its worth in 10 days of buying and selling. To get again to its all-time excessive, Litecoin must double.
Given the development proper now seems to be down, not up, I’m undecided inexperienced cryptocurrency traders ought to be anyplace close to this altcoin. Until, after all, you really plan to make use of LTC as forex and never an funding.
Venmo Accepts Litecoin
InvestorPlace contributor Mark Hake lately known as Litecoin an altcoin that ought to survive the crypto bubble bursting. My colleague identified that PayPal’s (NASDAQ:PYPL) Venmo peer-to-peer cash switch service had begun to just accept Litecoin, Ethereum (CCC:ETH-USD), Bitcoin (CCC:BTC-USD) and Bitcoin Money (CCC:BCH-USD). PayPal has additionally begun permitting customers to make use of cryptocurrency together with Litecoin within the checkout course of for its 29 million merchants.
“That is the primary time you may seamlessly use cryptocurrencies in the identical means as a bank card or a debit card inside your PayPal pockets,” PayPal CEO Dan Schulman advised Reuters in late March earlier than launching the service.
Schulman believes that cryptocurrencies will change into a funding supply slightly than simply an asset class or an funding. If that’s the case, an altcoin like Litecoin would profit from such a transition.
As for Litecoin, I haven’t studied it shut sufficient to know what utility it has past being another forex for peer-to-peer transactions, however I’ll get there.
Is Litecoin Rudderless?
Having by no means written about Litecoin earlier than, I had no concept that its creator, Charlie Lee, sold all of his Litecoin in 2017 to keep away from a doable battle of curiosity upon returning to run the Litecoin Basis full time.
Some folks may view this as a scarcity of dedication or perception within the cryptocurrency. Nevertheless, I usually keep away from proudly owning shares as a rule to eradicate any conflicts over firms I’m writing about.
However, as Charlie Lee said in 2017, he would proceed to put his heart and soul into the Litecoin Basis.
“Don’t fear. I’m not quitting Litecoin. I’ll nonetheless spend all my time engaged on Litecoin,” Lee said in December 2017.
“When Litecoin succeeds, I’ll nonetheless be rewarded in numerous alternative ways, simply indirectly through possession of cash. I now consider that is one of the simplest ways for me to proceed to supervise Litecoin’s progress.”
Lately, Charlie Lee joined the BTCS (OTCMKTS:BTCS) board, a digital asset and blockchain know-how firm that’s created a staking-as-a-service platform to validate blockchain transactions. It’s additionally creating a digital asset knowledge analytics platform so consumers of a number of cryptocurrencies can consolidate their trades onto one platform.
As decentralized finance and open banking develop, crypto management should get out and work with firms like BTCS to unravel real-world issues.
If BTCS inventory has a 20-day averaging closing price of $2.515 on April 1, 2022, Lee will see 175,000 five-year choices vest with an train worth of $1.03. That’s probably value no less than $260,000. If it hits the Nasdaq, he will get $50,000 in annual pay, plus 75,000 restricted inventory items, along with the 175,000 choices.
For sure, Litecoin proponents needn’t fear about Lee’s monetary scenario, which suggests he’s not going anyplace quickly.
The Backside Line
Litecoin supporters carry up three issues when selling LTC.
First, it has a tough cap of 84 million LTC, 4 occasions the availability of Bitcoin. Secondly, the time it takes to create a brand new block is 2.5 minutes, one-quarter the time of Bitcoin, making it significantly better for sending and receiving. Lastly, it has very low charges.
So long as LTC trades under $1,000, it stays a helpful altcoin for endeavor transactions. As for utility past low-cost charges and sooner transactions, I don’t see it.
Though most cryptocurrencies are in a little bit of a funk proper now, they’ll quickly go on one other run larger. Shopping for on 50% drawdowns over the following few years ought to be a wise plan.
The query you should reply is whether or not Litecoin is the horse it’s best to again over the lengthy haul.
On the date of publication, Will Ashworth didn’t have (both instantly or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications the place he’s appeared embrace InvestorPlace, The Motley Idiot Canada, Investopedia, Kiplinger, and several other others in each the U.S. and Canada. He significantly enjoys creating mannequin portfolios that stand the check of time. He lives in Halifax, Nova Scotia. On the time of this writing Will Ashworth didn’t maintain a place in any of the aforementioned securities.