Despite Litecoin (LTC) falling by over 84% from its all-time high so far, the coin still boasts 27.4% increase in the past year showing a possibility of the coin hitting $100 before the year ends. A couple of factors will be at play in ensuring the coin increase in price but its close positive relationship to Bitcoin’s price will be key. Litecoin has also continued to partner with institutional investors to provide debit cards and a messages service. With Litecoin trading at a discounted price of $55 USD, is this the time to load up on LTC?
Reasons LTC needs Bitcoin to hit its $100 mark target
1. Bitcoin’s resurgence will spur Litecoin’s long term success
“There will be at most 21 million bitcoins in existence. There isn’t even enough BTC to go around for EVERY millionaire to own one. So before you buy any other coin (LTC included), try to own at least 1 BTC first. Once you have 1 BTC, buy all the “sh*tcoins” you want!”
– @SatoshiLite on Twitter
It is coming to the realization of many investors in the field that in the short term, only the survival of Bitcoin (BTC) matters. The short positions taken on BTC have reversed to follow a bullish trend in the last few days. In the words of the founder of Litecoin (LTC) and CEO of Litecoin Foundation, Charlie Lee, “have 1 BTC first then buy all the sh*tcoins you want.” The idea from Mr. Lee however is not misplaced as he knows the value of increase on BTC price will reflect positively on LTC’s price too.
A chart showing the close price relationship of Litecoin (LTC) [left] and Bitcoin (BTC) [right]
Litecoin represents a superior technology to Bitcoin with faster, cheaper and scalable transactions. However, LTC is complementary to BTC as it eases out the transaction pressure on Bitcoin’s blockchain as a sidechain. As seen in early January and late last year during the massive buy into crypto, LTC and BTC showed similar charts as seen above.
2. Litecoin offers a long term real use case
As more and more cryptocurrencies come onto the field and some drop off, one lesson is key to learn in the field: Only the cryptocurrencies that offer a real use case will survive in the long run. Litecoin (LTC) is a cryptocurrency strictly used for instant payments and fast transactions. The advent of LTC was due to the increasing congestion on Bitcoin network with the increasing number of transactions.
Over 1000 merchants and retailers have agreed to accept LTC as a payment system. Countries in Latin America and South America such as Venezuela have taken up LTC as a payment system across the country. Litecoin fast payment systems are to be faster as the company partnered with WEG Bank AG in Germany to provide its users with debit cards.
3. Litecoin Foundation institutional partnerships
During the sharp bear market seen in the market, Litecoin Foundation took steps towards securing institutional investors and partnerships. Having secured 9.9% in WEG bank AG in Germany through TokenPay (TPAY), the company announced the integration of LTC to Telegram.
Last week on Thursday, Charlie Lee shared a tweet confirming a partnership with Zulu Republic to enable payments across the Telegram messenger app. Litecoin Foundation has been active in securing institutional partnerships which promises an increase of adoption across the introduction to millions of Telegram users.