I will try to explain what I understood about this pair of cryptocurrencies as an investment alternative to Bitcoin. All of this is useful for us to understand some of the fundamentals and do a similar analysis with another pair. The important thing is that we develop our own criteria, investments in these types of assets are very personal and must be taken responsibly as part of a global long / medium-term investment plan based on an already defined strategy. It is not jumping into the pool without looking, you have to check that it has water, depth, where is your starting point, how is the weather, etc. I explain? Well, let's go with the micro analysis.
- 1) LITECOIN:
It is one of the largest in market capitalization, that gives it its own marketing. But first of all Litecoin is almost identical code, modified and inspired by that of Bitcoin, for example the blocks are validated every 2.5 min, that is, it is faster than Bitcoin that takes 10 min. Then they increased the MaxSupply x4 and it remains by 84 million, reducing through the halvings mechanism the ltc emitted as the btc protocol does.
Therefore, among other things, it brings together the best of Bitcoin but unfortunately it came later and is indirectly used as a guinea pig every time a new feature is developed, that new modified code is run on the Litecoin network and after passing the tests ( as a pre-release tesnet or advanced beta network) over time the implementation arrives Bitcoin with much lower risk. So Bitcoin leans on Litecoin to improve steadily.
It has appreciation potential for having large capitalization, MaxSupply and halvings but less than Bitcoin for having less scarcity, there will be x4 times more Litecoins than Bitcoin and also it will always carry the backpack of 2nd in capitalization because it is after it. In the LTC / BTC market until a while ago it was bearish, there you can better follow the evolution of its price compared to Bitcoin. It has its good moments regarding Bitcoin, but they are few, although in the long term for many who only look at price it will be the best alternative and its marketcap will grow. Therefore it has undoubtedly potential for appreciation.
More information in:
https://coinmarketcap.com/currencies/litecoin/
- 2) Bitcoin Cash:
It is one of those that as time passes is losing positions with respect to its market capitalization, something unfavorable. It's like a rebellious copy paste (fork they say, fork of the protocol) Some time ago, a group of the Bitcoin user community interpreted that 7 transfers per second was little and the fees were very expensive, so they increased the size of the block to 8Mb for that more operations enter and also lower the fees of the network. Therefore the data size became unmanageable and some nodes stopped operating, due to this there are fewer and fewer computers on the network. This means that over time it is becoming more centralized and that means it is more vulnerable to 51% attacks, a technique of "stealing tokens" on the blockchain.
In summary, that Bitcoin Cash transfers are faster and cheaper does not mean that it is better and more scalable globally, in a way it is, but they improved that and worsened security / decentralization. And that is so important that for example the Bitcoin network never suffered such an attack and it is becoming more and more impossible because it is becoming more decentralized every day, you can have a node on your pc with the HDD disk that you use every day.
Therefore, the value that many give it and pay for that crypto is practically by the name / surname Bitcoin, but not by its fundamentals, it is more they separated from the same price, today they have an abysmal difference of several thousand dollars, that It explains, among other things, the current and continuously rising value of Bitcoin compared to the rest.
More data is:
https://coinmarketcap.com/currencies/bitcoin-cash/
I hope this reading helps consolidate your own criteria and analytical skills, as well as being the trigger for a new one. This type of market is constantly evolving, we must learn every day.-
