Today I was taking a look at my portfolio and was thinking about what other investments I should be making and the DCA I should be doing before the start of the next bull run. Now is the right time to invest because it is very likely that a bull run is starting. The reason why I have this feeling is because many coins including Bitcoin have shown great growth in the last few weeks. Many experts also believe that this can be a start for a bull run. But then something came to my mind. Usually, when a bull run happens, there will always be concrete reasoning based on the trend in which it happens. Maybe when it happens we will know.
Coming back to the topic, I was taking a look at my portfolio today and was looking at Litecoin. I was wondering if I should be purchasing more Litecoin to make use of the opportunity. At the time of writing this article, the price of Litecoin was around 70 dollars. I remember purchasing Litecoin when the price was around 150 dollars per coin. I was thinking of doing some DCA when the price was around 100 dollars, but now it is even better as the price is close to 70 dollars. But before I go to the market and purchase, I wanted to ask a few questions to myself.
Why is Litecoin still important?
Sometime back when Bitcoin was the only cryptocurrency available in the market, there emerged a few coins that were open source and decentralized trying to solve the problems that Bitcoin had. Block creation time was one of the biggest problems that were discussed. Litecoin was faster than Bitcoin in producing blocks and another biggest advantage that Litecoin gave over Bitcoin was its very cheap transactions. If someone had to do a lot of transactions, Litecoin started becoming more convenient than using Bitcoin.
Apart from all these, there were a few more advantages Litecoin was bringing. But I was also wondering if it is still a top coin or not. During the initial stages, the competition was very low and people were attracted to Litecoin because it was better than BTC. But today there are 100 other coins that are definitely better than Litecoin too. For example, Litecoin provides a cheaper transaction facility compared to other big chains. But there are also chains like Hive that provide transactions for free. After seeing such blockchains, it also makes me feel that the competition is heavy and there are several such alternatives available why would people still want to purchase Litecoin instead of other better coins?
When I asked this question to myself, I automatically got the answer too. When we have so many precious stones available in the earth's crust right now, gemologists are attracted to many different stones. Sometimes one stone can even be better than the other one but that doesn't mean that the stone that was picked up earlier would lose its value. So, if there are more stones out there, there will be a demand and value for each and every stone. Similarly, if there are several other blockchains emerging, people might still pick Litecoin and find it amusing. As long as there is an attraction and demand, Litecoin will still keep holding its value. There is also a belief that Bitcoin is like Gold and Litecoin is more like Silver.
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