For the cryptocurrency world, the headlines might be dominated by Bitcoin due to its domineering posture over the industry and because it accounts for over half of the total value of the crypto markets, but it is far not the best performing cryptocurrency in the world this year. With over 1200 distinct products, coins and tokens, it is very easy to get lost in the clutter of different names of products each professing to be the best thing on the market, trying to solve particular real-world problems. But on looking quite closer, one can see that among the best performing cryptocurrencies in terms of appreciation in value this year is Litecoin.
Whilst some brokers like 24option who offer Contracts for Differences (CFDs) trading on Cryptocurrencies, rightly focus on the main tokens, such as Litecoin, not least to safeguard the private investor and trader against ‘pump and dump’ volatility by crooks on the web targeting low volume and therefore easier-to-manipulate currencies.
Back to Charlie
Created in 2011 by Ex-Google engineer Charlie Lee with the vision of solving some of Bitcoin’s emerging problems such as speed and cost of transactions on its network, Litecoin has always marketed itself as the silver to Bitcoin’s gold that it is only in the market to complement the King of all cryptocurrency not to replace it.
But in 2017 this early altcoin suddenly showed off its muscle as it began trading in the beginning of the year at just over $4 and had gone to achieve a peak price of over $400 in just months, before sliding back somewhat*.
With its creator a well-known figure in the tech world, unlike Bitcoin’s Satoshi Nakamoto (whose identity still remains a thing of speculation), the rise in prominence of Litecoin this year seems to be creating a big controversy around the creator of the altcoin as he has not been shy to comment on it via his twitter page.
Zero to Hero to Zero?
Despite often warning Litecoin holders of the dangers of losing almost all their money from investing in the cryptocurrency due to the volatility of the industry, it seems this has not been enough for some crypto enthusiasts as he is often targeted for criticism from those who say he pumps up the coin for his own personal benefit. In response to these criticisms, Lee recently announced he has sold all his Litecoin holdings and donated others to charity, which should allow him to comment on it without any conflict of interest.
Lee’s decision has been received with mixed reaction across the spectrum, as some say Lee’s exit will allow Litecoin to grow more naturally without his constant interference, as he will now only be speaking from the point of view of an independent analyst, while others see the exit as something that will be detrimental to the currency long-term.
Those who believe that the decision is uncalled for point to the apparent stagnation of Bitcoin as it has been unable to carry out any meaningful update from its original form that will enable it to become more efficient as a currency, due to the lack of an influential figure like Nakamoto himself, who could have easily swayed opinion of the core developers and miners to accept such a change.
It is still early days to speculate what the exit of Charlie Lee will mean for Litecoin or its standing in the future in the cryptocurrency universe, but one thing we can all be sure of, is that the former Bitcoin junior is coming of age and will not shy away from wresting control from its big cousin over the rest of the day-to-day transaction niche it is seen to be abandoning, as it (Bitcoin) retracts to a more store of value coin.
But one this is for sure – whatever happens in the long-term, the short-term CFD traders on platforms such as 24option are able to take either view – long or short.
*Figures may not be up to date
Alpesh is a hedge fund manager and Author of Trading Online (Financial Times). He is a partner to 24option who offer CFD trading on Cryptocurrencies.
The content of this article constitutes Marketing Communication and does not qualify as Investment Advice or Investment Research. This article is produced by Alpesh Patel. Any views or opinions presented in this article are solely those of the author and do not necessarily represent those of 24option. The article is of a general nature and does not take into consideration individual readers’ personal circumstances, investment experience, and current financial situation. 24option accepts no liability for the content of this article, or for the consequences of any actions taken on the basis of the information provided.