It seems that Bitcoin’s stardom is about to fade with the rise of other cryptocurrencies. After crossing the $17000 barrier, it is now seeing other digital currencies like Ethereum and Litecoin, competing for the market share.
According to Coinbase, Ethereum has reached the value of $600 in last 24 hours. But the real, surprise came from Litecoin, which is now up to $320 for the first time. It’s current value appears much lessor as compared to Bitcoin, but it is rising with a higher rate. In 2017, the former has seen 7,291% increase in value against the 1,731% of the later.
Now the question arises, what is making Litecoin to beat the Bitcoin? Let’s have a look at factors that can be responsible for rise of new cryptocurrencies.
Bitcoin is Becoming Out of the Reach
One factor for declining popularity of Bitcoin is the high value of $17000 which is making this currency out of the reach. So, new traders might be looking to the other alternatives of Bitcoin which are easy to buy and require less investment. The fact that users are more likely to buy something that comes in hundreds of dollars than what comes in thousands of dollars, actually makes the sense. So, traders are driving the demand of Litecoin which is a cheaper item. Consequently, its market value is also increasing.
Hype around the cryptocurrencies
Ever increasing value of the digital currencies is also drawing the lot of attention from media and public. The resulting hype is making people to invest in new cryptocurrencies like Litecoin and Ethereum, before their price skyrockets. Unexpected rise of the Bitcoin value also made many traders to regret their decision of not taking it serious. Earlier, many critics had opined that there was no need to bother much about cryptocurrencies. Now, when they have made the initial investors millionaire overnight, people are in no mood to waste opportunities available in the form of other currencies.
Litecoin is Easy to Mine than Bitcoin
Charlee Lee, an MIT graduate introduced the Litecoin in 2011. He is of opinion, that carrying on cheaper transactions by using Litecoin is easy. Further, the mining process of Litecoin is widely available. It uses the Scrypt algorithm and utilizes GPUs for its mining.
Is Litecoin A Rival of Bitcoin
Not really; actually Litecoin is more like silver to the Bitcoin’s gold. According to Charlee Lee, the currency’s basic purpose is to allow secure cryptocurrency transactions on smaller purpose.
Till now, actual factors which are pushing the value of Litecoin are unknown. But, It is here to rise even if it is not competing with some major digital currency. Reason that the currency has a unique purpose to serve, according to its founder. If this is so, then it has carved up a niche which can drive up the further demand.