Steemians,
I wanted to take a bit out of my evening to advocate towards the attractiveness of Litecoin (LTC) and why the robust nature of this secondary coin indicates strongly toward a greatly undervalued position.
Most recently, Charlie Lee, the developer behind the creation of LTC very publicly announced his movement towards devoting his activities to the further and central forward development of Litecoin. This commitment combined with the upcoming integration into the Lightning Network (LN) are extremely good signs of upcoming strength potential.
At the time of this write-up, LTC is currently trading at 45.83 USD and has shown historically the desire to trade above the 50.00 USD resistance level. The first time LTC traded above this level was on 28 NOV 2013 where it traded at 50.83 USD, and this level was again reached more recently on 04 JUL 2017 when LTC reached an all-time-high of 53.60 USD.
The increased trade volume recently pushing the coin to a newly established all-time-high above the crucial 50.00 USD level indicates to me that prices below 50.00 USD are currently undervalue and have shown previously that this is a good accumulation price for long term buyers.
Mining Litecoin has understandably become more difficult over time as is the nature of most cryptocurrency. However, it is still possible to mine LTC at a profitable rate at least for the time being.
To measure this profitability, I used a hashrate of 50 MH/s applied to the current difficulty of 350559.62285410. For calculation I used the power consumption of 1000.00 Power (Watts) which would simulate the multiple GPUs required to reach this hash. The mining output using these variables currently yields:
Though the monthly accumulation of only 2.15190580 LTC monthly is not ideal at the current market price as this places difficulty to achieve ROI for new miners, this is potentially a good speculative mining activity should LTC be undervalued as discussed. Should miners accumulate Litecoin at the current difficulty, and LTC continue to show strength in long term growth in the next few months, there is a good potential to see quite a bit of return on those accumulated coins.
It is my opinion that in the long term, once the Lightning Network (LN) comes in to play, we could see LTC push levels to not seen before levels, very possibly up to 100.00 USD. My confidence in the possibility of 100.00 USD LTC has made me trade into the coin more recently and I am keeping a close eye on this coin in the next quarter.
I am very excited to see what Charlie Lee has in-store for this often overlooked altcoin. Short term swing trading is not ideal in my opinion, but accumulation through purchasing or mining activity will most likely see very good return on investment in my opinion in the long term.
Anyways, some food for though. I'd love to hear what the rest of you think.
@rabbt
This is just my personal opinion, always do your own research before making any financial decisions.
Chart and picture credits: liteccoin.com, coinmarketcap.com, coinwarz.com