A few days ago, the Litecoin foundation sent out a tweet, to the effect that more business all across the world are accepting Litecoin (LTC). While this should be a reason to celebrate, most of the people replying to the tweet were not amused. The argument by many is that Litecoin is too volatile, which will hinder its adoption by business. Some of the replies were as below.
While there is logic to this, it is a very short-sighted view of Litecoin. That’s because the volatility around crypto is because the market is still small. At a total market value of less than a $300 billion, the crypto market is worth way less than some of the most valuable companies in the world today. That’s why prices are so volatile because any large buy or sell orders are guaranteed to drive prices heavily in any direction.
However, this will change significantly in the near future. That’s because the world is increasingly coming to terms with the reality of decentralization. So much so that even the IMF and the Federal reserve are talking about blockchain technology, and how it can enhance efficiency. On top of that, we have seen Wall Street take more interest in cryptocurrencies. All these are factors that are guaranteed to drive money into crypto. Over time, the market cap of the crypto market will grow to a level where daily buy and sell orders will not have an impact on the overall price stability of the market.
Once that happens, it is cryptos like Litecoin (LTC) that stand to benefit the most. That’s because from a fundamentals perspective, Litecoin has what it takes to become a crypto for everyday payments. It is fast, low cost, and will be extremely scalable once it implements the lightning network. This means that Litecoin will be a huge competitor for mainstream payment systems like Visa and PayPal.
To give you an idea of how big Litecoin can become, one just needs to look at the growing list of companies that are adopting it. At the moment, a wide number of stores across the globe are accepting Litecoin as a payment method thanks to the #PaywithLitecoin campaign. It is even gaining an entry into air ticketing, one of the most high volume transaction aspects of business. All this is happening when Litecoin is extremely volatile, with wild price swings from over $300 to under $100 in less than 6 months. Once the market matures and prices stabilizes, Litecoin could very easily become an everyday payment method so entrenched that paying with it won’t even look like a big deal.
Once that happens, it is long-term holders of Litecoin that stand to gain the most, those who haven’t taken off, due to current bear run. The moment Litecoin (LTC) truly goes mainstream, the value of Litecoin will be multiples of what it is today. Litecoin could very easily be worth over $3000 a coin, when the entire market will be valued in the trillions. It’s time to stock up!