For what is worth (literally) worth, Litecoin is selling at a discounted price, an analysis published by eToro says
According to its latest market analysis of Litecoin, eToro concludes that the cryptocurrency is selling much cheaper than what would be worth it to the current market, coming to the point of saying that the LTC has a "huge discount" price.
"According to the metrics we analyzed below, the current price that LTC is trading at could be seen as a huge discount on what it should be worth"
the analysis said.
eToro's reasoning behind this conclusion is that Litecoin, despite being in the same Bitcoin market, is not in competition with it and chooses instead to distinguish itself as a different asset . It is light, similar in function, but very versatile due to its fast and cheap transactions, making it a more capable cryptocurrency in a larger market.
"In the meantime, both see most of its use as a store of value, similar to their precious metal counterparts.Because the relative price is highly correlated, Litecoin can offer some diversification for investors and room for growth with a much cheaper currency than Bitcoin, "he said
The company also stressed that the relationship between Bitcoin and Litecoin is quite similar to the relationship between gold and silver. When silver became more abundant due to new extraction technologies and the discovery of new sources, it quickly lost value and became a smaller cousin of gold as a resource.
eToro's opinion on the matter does not mean that people should just start putting everything they have in Litecoin. The company also warned investors that they read its analysis not to put more than 20% of their wallet in cryptocurrencies in general.
As for the coin itself, it is generally unwise to put all the eggs in one basket. Given that Litecoin fell harder than other cryptocurrencies at the beginning of the year, however, we could understand why eToro said that this could be an opportunity to buy a digital currency that could be sold to a discounted price.