If Bitcoin is the digital equivalence of gold, what cryptocurrency would qualify for the honorary title of " digital silver? " For analysts of the eToro social investment platform, the answer is Litecoin, the seventh popular cryptocurrency measured by market capitalization
It is not a competitor of Bitcoin
eToro analysts are not the first to coin the term " silver digital " for Litecoin as such comparisons have been made before. They clarified that saying Litecoin is " the silver of the gold of Bitcoin " is not at all derogatory as it reflects " the main intention of the founder Charlie Lee to become not a Bitcoin competitor but rather a compliment. "
Adds that the relationship (in terms of market position) between Bitcoin and Litecoin is in many ways similar to that of gold and silver . Just like silver, Litecoin is cheaper, has greater availability and allows faster transactions, thus demonstrating its value as a digital go-to for smaller transactions. Meanwhile, as gold, bitcoin is often preferred for large payments and deposits of value
Another important similarity would be that, like their shiny metal counterparts, the values of both digital tokens are very correlated as every time Bitcoin rises, Litecoin almost always
Litecoin is underestimated
The report cites several factors that argue that Litecoin, like its market value today, is actually underestimated.
In addition to its obvious superiority in terms of speed and accessibility, Litecoin also brings a number of other benefits to the community.
For example, the Litecoin network uses a scrub-dominated POW (proof-of-work) system, which is basically designed to make it more difficult to specialize in the extraction of hardware. Without delving into the technical question, this POW system dominated by scrypt makes the mining network much more decentralized. This, in turn, makes the network a little less vulnerable to attempts at intentional violation, including serious ones such as a 51% attack.
The report goes on to suggest that one of the main reasons why Litecoin continues to be undervalued despite its immense potential and popularity is the level of network adoption. Compared to other popular tokens like Bitcoin Cash, Ether Classic or Dash, Litecoin typically carries more daily active addresses due to its market capitalization.
The document added:
"Given that Litecoin has a stable and stable functioning product, as well as significant adoption, this bearish market in the entire cryptocurrency sector may have led to the loss of Litecoin. "
However, he urged investors to take precautions by buying or selling Litecoin as, despite all its brighter sides, Litecoin is not yet immune from many of the drawbacks of which the cryptic economy suffers intrinsically.