Litecoin is not expected to dethrones Bitcoin in the future because that’s not the original idea that it was created for. However, it has a higher upper limit and numbers of loyal investors so its price will continuously grow up. I would like to share my analysis of cryptocurrency based on advantages and disadvantages, competition and the future path of cryptocurrency.
Advantages:
Features: shorter confirmation time, faster transaction and process in blockchain.
Largest cryptocrrency in China (but NEO cryptocurrency owns the biggest number of Chinese investors).
Litecoin is becoming more acceptable in retail and e-store. The CTO of Reddit Chris Slowe confirmed that Reddit was replatformed for cryptocurrency proceeds on May 2018 when He also mentioned that Redditors are able to proceed with not only Bitcoin but also Litecoin.
70.1% of Litecoin is still mineable so its price can go up further.
This point is neutral, can be good and bad. It’s up to investors’ expectation. The founder of Litecoin Charlie Lee recently mentioned in an interview in Coin Congress that Litecoin would never replace Bitcoin. Instead, he encourages investors to regard Litecoin as supplements to Bitcoin alike silver to gold. Gold is extensively used in capital investment while silver is used in relatively small ones. Lee pictures a future that customers pay Bitcoins for commodities such as cell phones, real estate and fianance. Smaller and faster cryptocurrency such as Litecoin can be used for daily purchases, for example, lunch or a cup of Starbucks.
Disadvantages:
ASIC mining computers specifically designed for Litecoin are not particularly powerful. For instance, some Bitcoin miners can provide an efficiency of 2TH/s while Litecoin miners rarely run beyond GH/s. Also the transaction time of Litecoin is much shorter as well as 2.5 seconds in comparison to 10 seconds of Bitcoin.
The total amount of Litecoin is larger than Bitcoin, which means miners will profit lower in each blockchain as the bitcoin is obtained by GPU while Litecoin miners obtain by CPU.
Bitcoin still captures whole market. Bitcoin dominates 36.4% of total market capitalization and its influence is huger than any other else. Meanwhile, Bitcoin is able to influence whole cryptocurrencies but Litecoin cannot.
The competitive strength of Litecoin:
Litecoin Ranks 6 with market cap $8 billion (by Litecoin value).
Aside Bitcoin, Litecoin is another most favored cryptocurrency overview (especially in black market).
Big influences.
A large number of investors.
Analysis on the future of cryptoccurencies:
Only a part of cryptocurrencies can survive from competition in the future. Cryptocurrency is pluralistic. Many of them have come with awesome ideas but then headed to the end due to some reasons:
They’re less promoted and investors don’t know them.
Their ideas aren’t well understood by investors (such as Starta which was founded in 2015, to assist East European companies to enter U.S while many solutions to policy issues are unclearly explained)
Stress from top ranked cryptos.
Some were just born as scams. This makes new crypto less trustworthy. Especially ChainCoin, one of the oldest crypto released a decade ago. According to Timeline Of The ChainCoin Scam - Massive Cryptocurrency Pump And Dump Scheme, the author mentioned ChainCoin’s Twitter and Github accounts had been inactive for at least a month and many 2017 roadmap targets were missed with no updates provided after a reformed ICO.
The influence from high ranks is too enormous. The smalls declines hugely when Bitcoin declines slight. In fact, some financial crypto target to avoid risks from the investment such as TrueUSD and little known NobleCoin but these don’t save much from decline according to popularity.
Nevertheless, a construction of crypto ecosystem gradually forms when new blockchains are constantly regenerated for an improvement on old ones. For instance, Ethereum was an improved blockchain in Bitcoin. Later Ethereum Classic was created about to improve Ethereum. Some cryptocurrencies with unique blockchains are also merged into the ecosystem. In the future, improved branches will be as many as you can realize - as they can be improved in functionality, ideology, exchange method, etc.
Nowadays, crypto becomes more acceptable as a currency (It is still more like financial product at this moment). As I mentioned, some events happened recently (Reddit, NASDAQ, etc) indicate the engagement in our life. As long as we believe in it, its value won’t collapse. Thus Litecoin is not going to crash as some rumors we heard.
Although it is possible to take over the major currencies we’re using now, we have to handle it carefully in case of crisis.