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What gives value to Litecoin
What gives value to Litecoin
Altcoin

What gives value to Litecoin

By Marco Cavicchioli - 21 Dec 2020

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The creator of Litecoin, Charlie Lee, posted a tweet with a list of features that give value to LTC

The first is the high liquidity behind the trades on so many exchanges. 

In fact, it is by far one of the longest circulating altcoins, as it was created in 2011, whereas Bitcoin was created in 2009 and Ethereum in 2015.  

The fact that it has been around for so long has allowed Litecoin to be listed on so many exchanges, to the point where it can now be found almost everywhere. 

Moreover, with regards to the possibility of being traded, it is the second most popular cryptocurrency in the world in ATMs behind only BTC, and this makes it even easier to buy and sell. 

Lee also points out that it is also one of the few altcoins to have been integrated into the new buying and selling service on PayPal, which can count about 350 million users worldwide. 

It is worth noting that just after the launch of purchases on PayPal the price of LTC has risen, passing in a few days from about 60$ to about 90$, and then corrected and started to rise again.

The Grayscale Trust gives value to Litecoin 

Lee also adds an explicit reference to the GrayScale Litecoin Trust, which is Grayscale’s investment fund for LTC worth about $104 million

In addition to that, there are also some technical fundamentals that would give it value, such as fast and cheap transactions, high transaction volume and no downtime in the last 9 years. 

The blocktime is always just over 2 minutes, while the average fees oscillate between 0.5 and 3 cents, which is about a hundred times lower than those of BTC for example. 

The number of average daily transactions is relatively high, but it is still only a little more than 50,000 transactions per day. 

However, the current price of LTC at around $100 is still far below the all-time high of $360 recorded three years ago on December 18th, 2017. 

However, excluding the massive speculative bubble at the end of 2017, it is currently worth about twice what it was worth the month before, i.e. in November 2017. 

After the bubble burst, the price fell even below $25 in December 2018 and then started a fast climb back up to almost $140 in mid-2019. However, those levels have yet to be reached again. 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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