Did You Miss The Bitcoin Boat? There Is A New Litecoin Train.
One cannot avoid the news of the explosive growth of Bitcoin. Just mention Bitcoin in areas outside of the tech capitals and people will gather around you and want to hear anything that can be presented. In the tech capitals of course the mention of Bitcoin will produce almost a binary reaction. There is the “tulip craze” camp and there is the “Bitcoin is the new Gold” camp. In my view both camps have merit and to some degree they both are correct.
If Bitcoin is a form of modern Gold then Litecoin is a form of modern Silver. As algorithmic currencies grow because of the attention to Bitcoin, Litecoin is the most viable route. Charles Lee, launched it in early 2011. Charles addressed a number of issues that could make Litecoin just as valuable as Bitcoin and perhaps a more useful retail currency. He has been around a while and has also launched other currencies: his first, Fairbrix, was a clone of Tenebrix. Litecoin is based on algorithmic system that is similar to Bitcoin but different enough to offer some of the same benefits but with more attributes.
Grab Your Pick Axe And Get Mining
Litecoin is also very easy to mine on typical consumer hardware. Even entry level game cards can produce about $5 per day at current Litecoin rates. Bitcoin is far more complex to mine at this point. I have been very happy with both Bitcoin and Litecoin mining over the years but find Litecoin far more interesting.
Litecoin moved from less then $1 in the early part of the year to over $30 as I write this. Some of the reasons are the same reasons that Bitcoin is raising: China. I addressed this in a post that presented the fact that the Chinese have the highest savings are in the world at over 51%. There are 1.3 billion people in China and just 12 million Bitcoins. This has produced a huge market for other algorithmic currencies and Litecoin is the current favorite.
If One Percent Of Chinese Hold About $20 (US) Bitcoin, Bitcoin Could Reach $10,000 Per Coin
Over the last few months I put together a mastermind group of what I call algorithmic currency “rocket scientists”. This is because all of them are truly rocket scientists with PhDs in physics and mathematics. I have over a dozen mastermind groups that have been very, very productive in a number of areas of focus. The focus of this group is to understand how new algorithmic currencies like Bitcoin would impact the world in a number of very complex models we have built.
In our last mastermind meeting the VCs had over 20 people on the call making this the largest attendance thus far. The call also lasted for more hours then the last 5 calls combined. One of the parts of my original postulation, that seemed to not make much sense almost a year ago was brought up. This was the premise that Bitcoin would likely become a gold standard and at least for the foreseeable future not really be used as a currency because of how high our models show Bitcoin will raise as more Chinese invest. Another postulation is based on the raise of Litecoin in relationship to the raise of Bitcoin.
We have come to many conclusions but one of the most powerful is the relationship to wealth preservation and the savings rate in China. If this postulation holds true, Bitcoin will not see any long term drop, in fact if just one percent of Chinese hold $20 (US current rate) of Bitcoin it will raise a single Bitcoin price to over $10,000 per coin. The results from Litecoin may be more impactful. If just one percent of Chinese hold $20 (US current rate) Litecoin it will raise a single Litecoin price to over $5,000 per coin. Litecoin offers a far higher ratio for growth and perhaps far higher usage. I do not postulate that Litecoin will pass Bitcoin in popularity for a number of reasons. However the drive to save and preserve wealth in China already has had a huge impact on Litecoin and this trend will continue.
Along the way there are other algorithmic currencies that are rising and will continue to raise.
I may be able to disclose some very surprising news from the VCs that are working on this project. I am very excited over what may transpire. I can say this, it will instantly change the landscape for any payment startup and offer many, many opportunities for developers.
We truly are at the very early Gold Rush days.