Something I get all the time from people who are investing their first dollars into cryptocurrency is, "Bitcoin is too expensive so Im just going to buy Litecoin or Ethereum since they are more affordable."
I am not saying it is wrong to invest into Litecoin or Etherum over Bitcoin. I personnally have my portfolio as 35% Litecoin, 35% Ethereum, 20% Bitcoin, and 10% in alts such as steem, civic, electroneum, golem, digibyte, and wagger.
However, not investing into Bitcoin because it is more expensive is the wrong reason to not invest into it. It is actually a very simple math problem.
Lets say you have $100 to invest and the prices are for arguments sake:
Bitcoin=$4000 Ethereum=$300 Litecoin =$50 Steem=$1 Electroneum=$.01
Your $100 could buy you:
Bitcoin= 0.025 Ethereum= 0.333 Litecoin=2 Steem= 100 Electroneum= 10,000
Now lets say the price of Bitcoin goes up to $5000 you now have 0.025 0f $5000 which is $125 to get equal return from the others you would need the price of the others to be
Ethereum $376 because .333 of $376= $125
Litecoin $62.50 2 x 62.5= $125
Steem $1.25 x $100=$125
Electroneum $0.0125 x 1000= $125
So as you see, when you are trying to pick which one to invest into it doesn't matter which one is more expensive. You just have to figure out what you think the price is going to be in the future and do the math to see which is the best investment.
For fun I will do some price predictions and show you what I believe a $100 investment could be 1 year from now.
In one year!
BITCOIN: $12,000
The current price of Bitcoin is around $4,800. At the beginning of this year it was $1,200 in March $2000, in September $4,000. So as you can tell it has gone up by $2000 every couple of months this year due to a few factors. Factor 1. Popularity growth, Bitcoin has been around for a decade now and has had many ups and downs, but it has survived and is now thriving. People who believe it is a bubble simply do not understand it. Now that it has survived and is stronger than ever the popularity of Bitcoin grows by the day and with it the price. Factor 2. SEGWIT, the price jump from $2,000 to $4,000 in just a matter of a couple weeks was mostly due to SEGWIT. Many in the Bitcoin community feared that the Bitcoin fork would crash the price, but boy were they wrong. Segwit was a must with Bitcoin. Factor 3. FOMO and Trump, Fear of missing out has many people rushing in to buy Bitcoin. One day the price is $2000 and you think about buying it and then the next day the price jumps to $4000 and you develop FOMO so you buy and then the price drops to $3,800. Don't be that person. There is never a bad time to buy longterm, but short term be aware that it is volatile and if you buy while the price is on the rise then don't freak out if it drops a little. Trump was kind of a slang term for all that is going wrong in the world. People see what is happening in Venezuela and Catalonia as well as many other places. Due to fear of what can happen with FIAT money when economies crash many people are moving their money into Bitcoin and that makes the price go up.
So assuming these trends continue as I believe they will, along with the lightning network being introduced in a few months I see no reason to believe that Bitcoin won't be at $12,000 by this time next year.
So that means .025 of $12,000= $300 So if you invest your $100 into Bitcoin I believe it will be $300 in 1 year
Ethereum: $1000
Ethereum is hard to predict because many factors cause the price to rise and drop. At the beginning of the year Ethereum was just $8. WOW! STill hard to believe. By March it had 28x in value all the way to $220. The price has gotten as high as $400, but has now settled in around $300. The Enterprise Ethereum Alliance is a big deal for Ethereum. Long term Ethereum has far more potential than Bitcoin if it succeeds the way I believe it can. The future price of Ethereum could be a very very big number. ICO's have caused a lot of drama for Ethereum. Most of the new cryptos are being built on top of the Ethereum Blockchain which in the short term can be a bad thing because everyone is so unsure of whether or not ICOs are scams and people are foolishly investing without researching because they want to turn $100 into $100,000 overnight. That said, I believe the ICO drama will go away soon and once Metropolis is introduced to Ethereum followed by Raiden, these two updates will cause the price to skyrocket. $1000 may be a modest prediction.
.333 of $1000= $333
Litecoin: $125
Litecoin is actually my dark horse. It doesn't get as much attention as the others, but I believe it has great potential. I wouldn't be surprised to see the price of Litecoin at $500 before long. Litecoin has a great team led by its creator Charlie Lee. Litecoin is ahead of the game at every turn. They introduced Segwit first, and once the Lightning Network is in full swing I really believe Litecoin will begin to make a strong push. I strongly suggest following their team and what they are doing if you do not know much about Litecoin. Another factor is that as time goes on many who only know of Bitcoin will begin to learn about Litecoin and other alternatives. Once they realize that Litecoin is faster and cheaper you may see lots of money swing from BTC to LTC. Litecoin also serves a different purpose than Bitcoin. Bitcoin is more like your savings account and Litecoin is your checking account.
2 Litecoin x $125 = $250
Steem: $1.75
Steem is the cryptocurrency linked to Steemit. Steemit is the Social Media platform built on the blockchain that I am using to write this post. I may be way off on this prediction and it may be way more. However, I believe it is going to take a while for people to realize what Steem is and to begin using it on a daily bases. Of course investors could drive up the price as well.
100 x $1.75= $175
Electroneum: $0.25
I am an Electroneum fan boy. It will be the first cryptocurrency that can be mined from your phone. It has a team behind it that understands marketing better than any other cryptocurrency in my opinion. Electroneum will be used by gamers and that industry moves BILLIONS of dollars every year. The Electroneum developers realize one very important thing, that mass adoption of the crypto world will take forever with how difficult it is for casual people to understand. So, they have set out to simplify everything and target the 2 billion smartphone users on the planet. You will be able to download the app and mine straight from your phone as well as explore all of the features in an easy to use Cryptonote Algorythm. Of course, as with any technology that is in its infancy their is risk to investing into Electroneum, but the possibility for reward is far greater. Learn more at
https://my.electroneum.com/join/C3D3D7
10,000 x .25= $2,500
These are just my predictions. I am not a financial advisor and this is not financial advice. This is just me sharing what I think will happen and why I have Invested so much of my income into cryptos. Just this year alone I have seen great return on investment and I am very excited to see what the future holds. Don't tell you grandkids, "well sonnie boy, I could have bought crypto currencies back when less than 1% of the world even knew what they were but I just thought it was hog wash. By the time the U.S. Dollar started to fail and it became inevitable that cryptocurrency was the future my dollar didn't quite have that much buying power. Lucky for you, uncle Brett invested early on so we can visit him at the Space X station next week."
Some very sound predictions.....
I am also a huge Charlie Lee fan and agree that once people see the value in LTC, they will buy it in droves. it already had a great run...
I can agree with a 10 banger from here...$500 LTC isnt outrageous.
The Electroneum prediction doesn't have much merit other than being hopeful. It may end up being a dud, but I have followed their founder and believe he is serious about the project.
As for the others, I feel that my predictions are very realistic and maybe even modest. I could see Ethereum taking longer to break out of this $300 barrier, but I just can't imagine Litecoin and Bitcoin not having a solid 2018. Thank you for your input.