Litecoin Investment Overall Score: B

Litecoin Growth Potential: B
Litecoin Sustainability Score: B
Litecoin Brains Behind Currency: A

Litecoin - An Interesting Past

Litecoin hit the main stage in September 2017.  Earlier in the year it had seen its market cap consistently at around 2.5BN or roughly $50 per unit.  That was until everything changed and LTC jumped into the top 5 in cryptocoin market capitalization.

Charlie Lee is the well-known founder and innovator behind Litecoin.  His background in the space is a unique one as he is a builder of what we know to be pillars of the industry.  Charlie Lee has largely been behind the industry’s ability to scale to date in the USA.  His former role in the space was the Director of Engineering for Coinbase.  We know this to be not only the most popular cryptocurrency trading application, but also the most popular mobile application in the world.  Coinbase has changed the world and is the largest bitcoin exchange.  Many of Lee’s technologies are now trade on in the mainstream cryptocurrency exchange market that have been set by Coinbase.

Lee is known to be a bit of a personality.  He is not shy with a twitter account which makes him one of the most popular founders in the cryptocurrency space.  His twitter is known for its background where a playful depiction of Bitcoin and Litecoin as Dragon Ball Z characters partnering up is seen. 

Charlie Lee began actively marketing the product in the fall months of 2017, and with exposure, Litecoin began to see massive adoption.  If you look at the historic charts, you can see that LTC quickly made a run from the $80 range to $300.  Many fortunes were made because Litecoin was finally seen as a competitor to Bitcoin in the space.

Since then, Litecoin has wavered anywhere from the $150-$250 range and hasn’t seen any major moves above or below that area.  I personally sold my shares at $220 on the way up.  I could not believe the momentum the coin had.  I also knew investing wasn’t long term for me in the cryptocurrency space.  IT has long been our objective to remain neutral.  Selling my bitcoin and cryptocurrency investment assets was the first step to that.  But wow, did Litecoin have one heck of a run. 

Is it over?  Only time will tell.  Let’s talk about some of the things that make Litecoin Special.

Litecoin Functionality

Litecoin is a peer to peer internet currency.  It does not require an intermediary and is completely decentralized without any controlling authority.  It is internet cryptocoin that allows you to instantly pass payments back and forth for goods and services with minimal costs to the end user.  Like many other cryptocurrencies, Litecoin is best kept in a hot or cold bitcoin or cryptocurrency wallet.  While it is tradable on top exchanges like Coinbase, Binance, Gemini, and Bittrex, Litecoin can only be kept 100% safe in the hands of its investor.  We have more on cold and warm wallets here.

Litecoin has obtained substantial industry support due to its increased transfer capabilities.  When compared to bitcoin, it dwarfs the competition in terms of speed and additional storage capabilities.  Over the last year it has reached the same conversation as Bitcoin.  

The logic is there.  Charlie Lee was able to see the failures and successes of Bitcoin when he began bringing the idea of cryptocurrency to traders around the world on Coinbase.  Litecoin is just another iteration.  Like many in the altcoin space, Litecoin builds on the failures of the first to market currency.  Litecoin adds to an altcoin ecosystem where many cryptocurrencies exist with numerous functionalities that fit various market needs.

Like other currencies in the class, Litecoin is an open source project that gives the end users the capability of editing their experience.  With a MIT/X11 license, litecoin allows users to copy their software and distribute.  This allows for independent verification and very different use cases of the currency across the transaction space.

Litecoin Supporters

Coinbase is one of the most notable Litecoin supporters.  This support stems from a connection with Charlie Lee on the professional side.  The largest litecoin backers hold 1.62% of the overall litecoin inventory.  The three largest backers hold nearly 6% of Litecoin which is just under $600 million. 

The address of the richest Litecoin owner is LQL9pVH1LsMfKwt82Y2wGhNGkrjF8vwUst.

Some think Litecoin will push the $300-500 mark in price by the end of 2018.  It trails bitcoin in price and typically patterns off BTC due to the similarities.  This leads to many Litecoin doubters.

Litecoin Haters

Here’s a real shocker for you.  Charlie Lee sold his shares of LTC back at the end of 2017 claiming that his ownership was detrimental to the growth of the currency.  It’s an interesting claim, but it leads to doubters having quite a bit of ammunition when it comes to assessing Litecoin.

If a founder of a currency isn’t willing to ride the wave of the investment with you, doesn’t that give you second thoughts?  If Jeff Bezos was reported to have sold all of his Amazon shares, would you still buy the stock?  It’s a question you have to answer before buying LTC.

Charlie Lee wasn’t under the same circumstances as a Bezos.  In SEC filings for stock ownership, it is required that employees and managing members report the buying and selling of stock.  Cryptocurrency doesn’t have that rule.  When Charlie Lee tweeted out that he had sold everything, he was taking a notable risk for his investors.  He also didn’t have to report it at all.  Who knows, maybe Charlie Lee is #2 on the list of Litecoin owners, LPpHectVSbk7YHa5X89Cm3FoFBfzkJBJc9.  There’s really no verifying anything said.

Many argue that if it’s true, Charlie Lee was getting ahead of a death spiral.  Litecoin has solved BTC’s scalability problems, but doubters would suggest that Bitcoin will improve this aspect before long.  In the situation that Bitcoin recovers all of the ground they, what value does Litecoin have in the long run?  Bitcoin is already much bigger.

If only one cryptocurrency is to exist, perhaps doubters are right.  All angles must be considered when investing in the altcoin space.

Where to buy Litecoin?

We recommend doing your homework before buying Litecoin.  Read about Charlie Lee and what he has done.  Try to understand why someone might sell their cryptocurrency shares so early in a currencies life.  If you decide that Litecoin is for you, it’s one of the easier currencies to trade.

We recommend Coinmama, our #1 source for investing via a bitcoin exchange.  Coinbase is also good for this one, but as we’ve written in the past, it has much higher fees.

We wish you the best of luck with your investing.  Check back with us soon for new coins!