December 12, 2017 (The Ferowich Report) — Charlie Lee’s creation known as litecoin has been on a tear the past week, continuing a monstrous year of gains despite bitcoin’s insistence upon grabbing much of the attention from mainstream news outlets.
Litecoin (LTC) is one of three cryptoassets available on Coinbase, which has surged to become the most downloaded app on Apple’s app store in recent weeks. With a December 12, 2017 network value of $18 billion, litecoin is worth $4 billion more today than bitcoin was last Christmas.
On January 1, litecoin could’ve been purchased for $4. Today, the $333 required to buy one litecoin could’ve bought you 89.5 litecoin earlier this year. This fact isn’t intended to create FOMO among readers, but to inform nocoiners that towering gains in the cryptoasset space haven’t aren’t confined to bitcoin.
“Going up 100x in a year is unheard of even in the crypto space,” Lee said on Twitter Tuesday, dubbing litecoin the “little chickun that could.”
Some analysts have noted that litecoin is more difficult to mine with powerful application specific integrated circuit (ASIC) than bitcoin, making the mining pool more equitable toward laypeople than bitcoin.
Litecoin’s hashrate has increased dramatically since the beginning of December, rapidly closing in on ethereum’s average daily hashrate. As hashrate increases, the power and security of a given decentralized network increases as well. When prices for a particularly cryptoasset increase, miners have a greater incentive to mine that particular coin.
Litecoin shares many similarities with bitcoin, however the total amount of litecoin supply to ever be produced in accordance with the protocol is four times higher than bitcoin—84 million to 21 million. There are currently about 54 million LTC in circulation, according to CoinMarketCap data.
Litecoin’s founder, Lee, has warned against buying LTC on FOMO [fear of missing out] sentiment. “Sorry to spoil the party, but I need to reign in the excitement a bit … Buying LTC is extremely risky. I expect us to have a multi-year bear market like the one we just had were LTC dropped 90 percent in value ($48 to $4). So if you can’t handle LTC dropping to $20, don’t buy!”
“Every crypto bull run I’ve seen has been followed by a bear cycle,” the former Google engineer explained, adding, “the market needs time to consolidate. That’s just my experience from seven years of watching this space.”
There is an ongoing contest to guess what Lee’s Twitter avatar means. “No, it’s not a stupid game played on the litecoin blockchain,” he said Tuesday, noting that the Twitter handle @magicalcrypto was a “hint.”
Send litecoin price predictions for the end of 2017 and ideas about what Lee’s profile picture means to firstname.lastname@example.org. Until then, invest responsibly and remember there’s no such thing as lucrative returns without corresponding risk.
Support independent journalism with ETH: 0x92c0c5f97959fdf79927c1619c1761b7648f9bd1