It's inevitable.
Bitcoin has been referred to as the gold standard, with Litecoin being silver, and their correlation holds a strong reflection to the relationship between real gold and silver per ounce.
Silver $16 / Gold $1225 = 1.31%
LTC $51 / XBT $2589 = 1.92%
This obviously fluctuates some, but on overage the Gold-Silver correlation holds true. Why?
This is something I can't answer, which leads me to believe Litecoin could take place as the new Gold in the near future. Litecoin's coin cap is 4 times higher than Bitcoin's, so it's logical that Bitcoins price would be higher due to the coin rarity with respect to litecoin. However, Litecoin is 4 times faster, and from what I understand, is the overall better digital currency. In our current era of technology, this to me, makes it much more valuable.
When this is taken into account along with an upcoming announcment from MIT, something drastic is bound to occur. Let me elaborate. As an Engineer, I know very well what the students and faculty at MIT are capable of, and I firmly believe they chose Litecoin as their ginny pig for a reason. It does not matter what the announcement is, it will be a BIG DEAL. I've read many blogs about anticpation for a Lightning Network, but I do not think it will make a difference if that turns out to be the reality of the announcement or not.
I know many will argue that Bitcoin was the first of its kind, and it is entrenched in the early adopters of the digital currency. However, do not forget that these same folks are not the same old timers that won't let go of their flip phones. These people are believers in technology, innovation, and see the future ahead for what it could be. If the path going forward points to Litecoin, I think they will quickly park their investments there.
Digital Currency is a technological advancement, and it will be subject the same degree of criticism and volatility as everything else in that category. What happened to the Sony Walkman when the iPod was reveiled? The Walkman tanked. What happens when the new iPhone comes out? A majority of people dump it, and upgrade. Get my point? It will happen, so you better have your apples in the right basket when it does.
Now, just for shits and giggles...
Assuming 50% of people upgrade to the new iphone when it comes out, we'll assume 50% of Bitcoin holders switch to Litecoin. That's currently $1250... I understand that 50% of Bitcoin holders do not necessarily hold 50% of the market value for Bitcoin, but disbursement, the total amount of coins distributed, and probability would show that it's a fair guess to say that 50% hold = 50% share value. I'm also assuming that the buy/sell price is linear based on supply and demand, forego if 50% sell then the price drops 50%, but I'm not sure that's necessarily true. Anyway, you get the picture. Moving forward, anticipation builds and everything usually overshoots before it settles into a price suitable to the market. Google "PID Overdamped" and look at the pictures. That's what I'm referring to. Underestimating that overshoot to be 25% = $1250*1.25 = $1562. That's what I think the market value will hit.
I could be way of base... but being wrong won't cost me anything. The market will climb regardless, so the total $ amount is moot. However, if you ignore my 2 cents, it could cost you ALOT of missed opportunity.
Feel free to weigh in... CONSTRUCTIVELY.
Congratulations @sbelecengnr! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPSolid post. Good to see I'm not the only one that is thinking about this. The biggest group of uneducated investors in mankind get's a shot to determine the price of a crypto. It's an interesting world we live in. I really advice people to take a look at: https://www.coincheckup.com They give great insights in the team, the product, advisors, community, the business and the business model and other techincal insights. Go to: https://www.coincheckup.com/coins/Litecoin#analysis For the Litecoin Indepth analysis
Beautiful post