I will discuss why I think LTC is a viable hedge against Ethereum and Bitcoin going into Q1-Q2 2021.
The market is currently being pumped by institutional investors trying to get a small exposure to the "blue chip" of the cryptocurrency market. This has led to the utter domination of BTC and ties into the main caveat of my thesis. This analysis is dependent on whether BTC decides to cool off and range going into 2021. Assuming that it does, I believe investors; both institutional and retail, that "missed out" will want to seek out alternative options. At the current moment, there are arguably only a couple of other options, ETH and LTC. I am aware of ADA, LINK, and DOT but we will leave those out for now due to the uncertainty of their time variable which is something that institutions (big money) will stray away from.
A lot of people might argue that ETH is the clear-cut second-best option, but they fail to realize how ambitious their goal really is. With the lengthy implementation of ETH 2.0 and the large fundamental risks associated with PoS, ETH might not be the best play for institutions at the moment. I'm certainly not bearish on ETH, but I can't ignore the fact that ETH 2.0 finalization is years away from completion.
Another fundamental market variable to consider is the dead giant XRP that is soaking up $9 Billion in market cap. Obviously, I don't expect LTC to capture any significant portion of the MC, but XRP falling further would give LTC its #3 spot (excluding USDT) once again. This could serve as the initial catalyst for inflow and I expect it to happen relatively soon (Q1 2021). In addition, fungibility is something Bitcoin is bad at. Litecoin is solving this. I am not saying Litecoin is better than Bitcoin. BTC will always be #1 due to its truly unique fundamentals, in my opinion. However, with Mimblewimble implementation hopefully in Q2 2021. This might be the year for LTC to once again prove that it's not dead.
Once again, this is just my personal opinion and pure speculation. I am not an expert by any means and this should serve as mostly general insight for others. I hope you all enjoyed the short read. I would love to hear any opinions, thank you.
Best,
PyschedCrypto
The market is currently being pumped by institutional investors trying to get a small exposure to the "blue chip" of the cryptocurrency market. This has led to the utter domination of BTC and ties into the main caveat of my thesis. This analysis is dependent on whether BTC decides to cool off and range going into 2021. Assuming that it does, I believe investors; both institutional and retail, that "missed out" will want to seek out alternative options. At the current moment, there are arguably only a couple of other options, ETH and LTC. I am aware of ADA, LINK, and DOT but we will leave those out for now due to the uncertainty of their time variable which is something that institutions (big money) will stray away from.
A lot of people might argue that ETH is the clear-cut second-best option, but they fail to realize how ambitious their goal really is. With the lengthy implementation of ETH 2.0 and the large fundamental risks associated with PoS, ETH might not be the best play for institutions at the moment. I'm certainly not bearish on ETH, but I can't ignore the fact that ETH 2.0 finalization is years away from completion.
Another fundamental market variable to consider is the dead giant XRP that is soaking up $9 Billion in market cap. Obviously, I don't expect LTC to capture any significant portion of the MC, but XRP falling further would give LTC its #3 spot (excluding USDT) once again. This could serve as the initial catalyst for inflow and I expect it to happen relatively soon (Q1 2021). In addition, fungibility is something Bitcoin is bad at. Litecoin is solving this. I am not saying Litecoin is better than Bitcoin. BTC will always be #1 due to its truly unique fundamentals, in my opinion. However, with Mimblewimble implementation hopefully in Q2 2021. This might be the year for LTC to once again prove that it's not dead.
Once again, this is just my personal opinion and pure speculation. I am not an expert by any means and this should serve as mostly general insight for others. I hope you all enjoyed the short read. I would love to hear any opinions, thank you.
Best,
PyschedCrypto