Fundamental Analysis of Litecoin’s Price Increase
April 21, 2019
The most recent analysis that determined Litecoin’s substantial increase over the years indicates that since its inception to its current price stats, Litecoin’s price has surged to a massive 140%+.
Reason #1 – Litecoin Marketing
Undoubtedly, Litecoin marketing at a large has played a huge, probably the biggest of roles in Litecoin’s price boom.
· The Marketing Momentum
A little throwback to 2017 and you will be reminded of a time when Litecoin’s marketing was being done at such a large scale by paid promoters that even Charlie Lee finally stepped out of the shadows when Litecoin achieved eminent success so much so that eager crypto traders were suggested to bank in on an Exchange Litecoin scheme while they still had time.
But a few downfalls later, Charlie Lee withdrew back from the light in 2018 and the marketing team of Litecoin was subsided.
· The Comeback of the Marketing Machine
In late December 2018, however, something stirred inside Litecoin and suddenly the cryptocurrency scurried around to build a solid marketed foothold in the community.
A widely popular (and controversial) YouTuber, Logan Paul was called on board to take part in the joint campaign for Litecoin. Although, there haven’t been many statements released since then that explain this partnership as Logan Paul personally states that his brand does not have any affiliations with cryptocurrencies. But in spite of this, one thing is sure – The partnership is real.
Reason #2 – Private Affairs and Confidential Transactions
By 2019, a string of cryptic tweets that were tweeted by Charlie Lee made everyone scratch their heads in confusion. It raised potential doubts about Litecoin’s underlying promises of wanting to be supremely fungible.
· A Breakdown on Fungibility
A universal example of all paper currencies out there in general, a fungible asset in the simplest of terms can be called as a dollar bill (USD).
But in other words, it also means that a dollar bill is a dollar bill. No one needs to bat their eyes at this or lollygag at this simply-put statement. Nobody, with stress on the word “nobody”, cares about what kind of dollar bill you carry along in your pocket.
The dollar bill that you possess is just like everyone else’s. That’s one way to put it.
· Raising Concerns at Litecoin’s Claims of Going Fungible
As Litecoin derives its crypto status from Bitcoin’s code it’s easy to understand why it is not fungible as Bitcoin is not fungible either. And while the crypto community may act as if Bitcoins are fungible, the general protocol begs to differ.
Every Satoshi on the network is unique in its own way on the protocol. The whole idea behind this is to preserve the integrity of the ledger and grant free status to the protocol to recognize double expenditure and more.
That gives a fair idea of why Bitcoin as well as Litecoin are not fungible although they are treated otherwise.
· Charlie Lee's Demand for Fungibility
The want for fungibility in Litecoin could have more than a few reasons owing to its protocol.
- The Bitcoins involved in malicious practices are known as 'Dirty Bitcoins' that are cumulatively tracked on the Blockchain network where sometimes searching leads one to identify the holder of these dirty Bitcoins - A procedure that has nothing to do with the underlying story of what went down and made these Bitcoins dirty.
- The non-fungible nature of these two cryptocurrencies is the reason behind making the entire protocol, public to the traders. If one were to add fungibility to the Litecoin protocol then that would make the advancement of privacy pursuance a lot simpler.
· Confidential Transactions for Litecoin
The protocol deems confidential transactions as private transactions which if ever will be integrated for Litecoin as stated by Charlie Lee who cites 2019 as the potential year when it will, will then go on to become the biggest achievement of Litecoin till date without a doubt.
This development will make little to no difference for daily trading that calls for one to Convert Litecoin To Bitcoin.
The crypto community however deems that this headway will transform Litecoin's status to 'silver' much similar to that of Bitcoin's 'gold'.
And about the much talked about merger between Monero and Litecoin, the chances seem bleak. Although not much development has been done on this matter, it is unlikely that the merger is to happen any time soon. What crypto enthusiasts believe is that maybe Charlie Lee looks to implement the merger to make Litecoin transactions, confidential. This could be made possible owing to Monero's powerful mechanisms of sanctioning private transactions.
Only time will tell if Litecoin will carve its own niche in the crypto world or remain to most as a mere Bitcoin rip off.