Litecoin (LTC) has been the subject of heated debates in the crypto community regarding its value proposition. The number of people who used to believe in Litecoin (LTC)’s value as a project that contributes something of value to the crypto industry is on the decline. This is to be expected as Bitcoin (BTC) sets out to resolve its problems that Litecoin (LTC) set out to address. If Bitcoin (BTC) ends up doing the same things that Litecoin (LTC) can, it will practically leave zero use for Litecoin (LTC). This realization is growing stronger than ever, but despite the negative criticism over Litecoin (LTC)’s value proposition, we have not seen a big impact on its price short term. The above chart for LTC/USD on the weekly time frame shows that Litecoin (LTC) has strongly defended its support against the US Dollar (USD) and seems to be beginning a new trend now. The price could appreciate along with the rest of the market short term but it would be unreasonable to assume that going forward, investors in the crypto community will set aside all the debates and discussions regarding Litecoin (LTC)’s value proposition. There are two reasons why this issue has come to light now.
The first reason is that the growth of the crypto market has opened a lot of doors for investors. There are plenty of investment opportunities and they no longer have to buy Litecoin (LTC). Pioneers of the cryptocurrency space know that Litecoin (LTC) was once the silver of this space if we consider Bitcoin (BTC) the gold. This is because the coin is almost as old as Bitcoin (BTC) and before Ethereum (ETH), it used to be the second largest coin by market cap. So, certainly those who thought that Bitcoin (BTC) had run its course and there may not be room for 50x or 100x gains turned to Litecoin (LTC). It was in their interest to promote Litecoin (LTC) and so they did. When Coinbase listed Litecoin (LTC), it was the cheapest coin available which played a pivotal role in the growth of Litecoin (LTC) during the previous market rally.
Chart for LTC/BTC (1W)
The second reason is the ongoing debate regarding Bitcoin (BTC) and Gold. If investors accept Bitcoin (BTC) as digital gold, do they have to accept Litecoin (LTC) as digital silver? If they do, where does it all stop? What is to stop another cryptocurrency from claiming to be the digital platinum, digital palladium or digital copper? The reason people buy Bitcoin (BTC) is not the same as the reason they buy cryptocurrencies. Investing in cryptocurrency projects like Ethereum (ETH) or Ripple (XRP) is like investing in stocks. People are looking to profit off the success of these companies or organizations; they are not looking to adopt their tokens as digital currency, because there can be only one. If we accept Litecoin (LTC) or Bitcoin Cash (BCH) in the same way as Bitcoin (BTC) that totally obliterates the purpose of having a digital currency like Bitcoin (BTC) in the first place.