5 Reasons for the Rise of Litecoin

by Andrew McGuinness     Jul 16, 2019

For those who invested in Bitcoin early, they are reaping the rewards of holding onto their investments over 2017. However, that doesn’t mean that there is no longer any gains or fortunes to be made in the cryptocurrency investing world: Litecoin is expected by many to be the next best thing. Over the last few weeks, Litecoin has experienced tremendous growth, and it is in a prime position to explode over the next year. Here are 5 reasons for the rise of Litecoin:

1) Coinbase

A major reason for the recent rise of Litecoin is simply from the massive influx of new users signing up for Coinbase. Coinbase is one of the most popular cryptocurrency sellers online, and has recently been holding the top place on the Apple App Store, beating out YouTube and Instagram. Coinbase is the place to go to for new people who are looking to get into cryptocurrency. Since Coinbase sells only Bitcoin, Ethereum, and Litecoin, the attention drawn to Litecoin due to Bitcoin’s growth is apparent.

2) Buyers Are Becoming More Fluent in Cryptocurrencies

For some buyers, Bitcoin has gone past the stage of the “new thing on the block”, and many are beginning to understand the potentials of cryptocurrencies. With this more nuanced understanding comes more careful decision-making; that is, investors are beginning to realize the pitfalls that plague Bitcoin, and are looking to find the next best thing.

Trading 101 teaches that you should avoid investing in what everyone else is investing in, and that leads many people to Litecoin. With the several advantages Litecoin has over Bitcoin, it’s not hard to see why we’re experiencing this quick growth.

3) New Buyers

New buyers are looking to get in on one thing: gains. However, it can be difficult to log into Coinbase and see Bitcoin, which is nearly at $20,000 per coin, and imagine that it can be still worth the investment after the tremendous growth of 2017. Litecoin is the easy alternative—exactly like Bitcoin but better, still valued at just a few hundred dollars, and with many experts claiming that it is hugely undervalued.

New buyers can dream big about Litecoin’s potential growth, imagining huge gains if it goes the same direction that Bitcoin has gone. And with all current signs, there’s nothing saying otherwise.

4) Charlie Lee’s Media Push

Charlie Lee is the founder of Litecoin, and he is almost the opposite of Bitcoin’s mysterious founder, Satoshi Nakamoto. Whereas Satoshi Nakamoto’s identity remains unknown, building greater mystery and intrigue around Bitcoin, Charlie Lee is an open and kind founder that many people can stand behind. His recent media push over the last few weeks has pushed Litecoin past the hundred-dollar mark, and many are now seeing Litecoin for its great potential.

5) Bitcoin Growth

Bitcoin has experienced massive growth over the last few weeks, and there’s a big reason why: on December 13, Cboe launched bitcoin futures trading, which led to a huge spike in Bitcoin’s value. Recent reports have noted that Litecoin and Bitcoin are tied together, with spikes and drops in Bitcoin reflecting similar spikes and drops in Litecoin; any time that Bitcoin goes up or down, Litecoin goes up or down with it.

There are two more specific reasons behind the recent rush of Litecoin: firstly, the increased traffic to Bitcoin has led to a natural increase of traffic to the other larger cryptocurrencies (Litecoin); secondly, the increase of traffic around Bitcoin has driven up fees and transaction times, clogging up a network that was never built to handle so much activity, and this could be driving people away from Bitcoin and into Litecoin.

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