When it comes to crypto investing, Bitcoin is the biggest coin by market cap and gets most of the attention.
Even though I have 50% of my net worth in Bitcoin, I’m always looking for clever ways to diversify my crypto portfolio and save for a rainy day.
That’s when I realized how undervalued Litecoin was and decided to allocate 10% of portfolio into LTC as a lottery ticket gamble.
Litecoin trades at less than $100 and doesn’t get that much attention but I believe LTC could 100x and reach as high as $6,000 during the next crypto bull run.
7 Reasons Why Litecoin Could Reach $6,000 by 2025
1. Litecoin is the world’s 2nd oldest cryptocurrency
When Satoshi Nakamoto created Bitcoin in 2009, many believed BTC was a form of “digital gold” due to its scarcity. However, nobody created a form of “digital silver” to complement Bitcoin.
That’s when Charlie Lee created Litecoin as a fork of Bitcoin with only a few changes including 4x the total supply along with 1/4 of the block execution time.
So many cryptos have launched and failed but Litecoin has survived for over 10 years without a single moment of downtime.
2. Litecoin is One of the Few Deflationary Crypto Assets
Most cryptocurrencies mimic fiat money with massive supply numbers and unchecked inflation. Creators lure in unsuspecting investors with promises of massive returns but usually end up as worthless pump and dumps.
However, Litecoin is one of the few pure deflationary cryptocurrencies with a halving cycle every 4 years just like Bitcoin.
Deflationary cryptocurrencies increase in value over time as more people join the network after every supply crunch.
3. Litecoin is the 2nd Most Popular Crypto for Transactions
People spend their money at places like Starbucks, Walmart, and McDonalds every day as part of their daily routine. As crypto adoption increases, you may be encouraged to spend your Bitcoin on basic needs and depreciating assets.
However, I don’t think it’s smart to spend Bitcoin on things that don’t last over time. Throughout history, wealthy investors hoarded gold due to its scarcity and value.
So what’s the best alternative to spending Bitcoin? Spend Litecoin.
Once everyone realizes that it’s better to spend Litecoin and save Bitcoin, crypt investors will flock towards LTC and drive the price up.
4. Litecoin is The Perfect Checking Account for Making Purchases
As I touched on in my previous point, Litecoin is a good crypto for buying stuff that depreciates. LTC is a 21st century checking account with faster transaction speeds than Bitcoin along with lower transaction fees.
I hate banks that charge fees on their checking accounts so Litecoin is a perfect alternative for crypto enthusiasts who want to avoid overdraft fees, maintenance fees, and other issues.
5. The Litecoin to Bitcoin Ratio Could Approach 80 to 1 Soon
Currently, the Litecoin to Bitcoin ratio is around 450 and many crypto investors consider Litecoin undervalued at the moment.
In February 2023, the Litecoin to Bitcoin ratio was just 230 so you can purchase a lot more LTC at the moment.
In reality, there is around 80 ounces of silver to 1 ounce of gold within the earth’s crust. Litecoin has 4x the total supply compared to Bitcoin and could move closer to a 80 to 1 LTC to BTC ratio during the peak of the next crypto bull run.
6. Once Bitcoin’s Price Reaches 500k, Altcoin Investors Will FOMO into Litecoin
Bitcoin is predicted to surpass Gold’s market cap by 2025, which would put BTC’s price at around $500,000 per coin.
At that point, many crypto investors will give up and look towards cheaper altcoins for crazy gains. Litecoin is a trustworthy crypto that’s survived several bear markets so I expect plenty of capital to flow int LTC over the next 2 years.
7. A $500 billion Litecoin Market Cap Equals $6,000 Per LTC
It’s only a matter of time until Litecoin reaches the $500 billion market cap milestone. That’s a 100x from its current market cap and it could happen over the next 2 years.
Seera institutional firms such as BlackRock, Fidelity, and Ark Invest have applied for Bitcoin ETFs to give their clients access to safe BTC investments. Why not offer Litecoin ETFs too?
Grayscale is the only company that offers Litecoin ETFs but I expect that to change once institutions realize that other altcoins offer solid returns as well.
- Litecoin’s Poor Performance Against Bitcoin: The truth is Bitcoin has outperformed Litecoin by a wide margin since Litecoin’s inception. You would have done better buying Bitcoin in the past. If this trend continues then investors may dump LTC and FOMO into Bitcoin instead.
- Lack of Litecoin ETF interest: Institutions must offer Litecoin ETFs to send LTC to higher prices. There’s are trillions of dollars sitting in brokerage accounts that could invest in Litecoin. If these ETFs don’t get purchased then Litecoin won’t soar in price quickly.
My Gameplan for Litecoin
I hold 90% of my crypto portfolio in Bitcoin and 10% in Litecoin. I recommend holding at least 6.5 LTC because that’s equivalent to the LTC block reward issued every 2.5 minutes.
If Litecoin reaches $6,000 then you only need to hold ~166 LTC to become a Litecoin USD millionaire.
I will continue HODLing Litecoin in cold storage while I wait for the market to realize its true power.