Ok, so in my newbie crypto mind I’ve settled on a few things.
One, Bitcoin is the “gold” of crypto. It was the first, and it has a max supply of 21 million coins; therefore, it has a limited supply, it is rare, and it is obviously valuable in the world of crypto. With a current price of approximately 38,000 USD whereas gold is a mere 1910 USD an ounce, this is inarguable ... at the moment. People invest in physical gold for the exact same reasons: gold is rare, gold is valuable, and it has a limited supply. So, the correlation is obvious: Bitcoin is the new digital “gold” … for the moment. Admittedly, gold does have a few several thousand years head start on Bitcoin, but we’re talking two different asset classes: physical vs digital.
Two, Litecoin would logically be the digital “silver.” Now let's fast forward to a distant future to where mass adoption is a thing of the taken-for-granted past and all value is determined relative to bitcoin. Just as the common man today recognizes the value of gold and silver, the common man of the future will recognize the value of bitcoin and litecoin.
Unlike gold and silver, which we cannot attach an exact number to the maximum supply (gold and silver is still currently being mined), we can attach such an exact ratio to Bitcoin vs Litecoin; it is 1:4. If anyone is more of a newb than me, the maximum supply of Litecoin is 84 million, so that makes the ratio exactly 1:4 (21million vs. 84 million). So again, using my over simplistic math, in the distant future Litecoin should be valued at exactly ? of Bitcoin. It stands to reason, that in a future, digital society this would make sense.
At today’s current Bitcoin price of 38,000, then it would stand to reason that the long term value (notice I said value and not price) would be 9,500. Currently its price is 158$. If you follow my simple math in terms of value and not price, then this seems to me like a compelling investment opportunity.
Now I know that my logic is overly simple here. There are many things that affect the price of an asset, but price is a short term number; value is a long term truth. And, I just can't get my mind around the fact that the value of Bitcoin vs. Litecoin is logically 1:4 if you believe in mass adoption and crypto as a store of value. So, in the short term I believe that should translate into my future purchases being mainly into Litecoin with the cash that I decide to allocate into crypto.
Now for the final thoughts:
I can’t help from equivocating physical gold and silver with Bitcoin and Litecoin; in a long term, mass adoption scenario that translates physical to digital, it only makes sense. Considering that I’m one of those people who are only interested in Crypto with a limited supply, such as their physical metal counterparts are, I am ever curious what the 3rd denomination would be. If Bitcoin equals gold, and Litecoin equals silver … what equals copper?
And, I am literally asking this to remedy my own ignorance. I used to think that it was Dogecoin, but Dogecoin doesn’t have a limited supply as does copper or bronze. I wholeheartedly believe in diversifying assets, and I want to invest in the metaphorical “three” precious metals of crypto.
I’m not writing this article for the tips; I’m writing this one for the comments. If Bitcoin = Gold, and Litecoin = Silver, (according to my metaphor) what is the “copper/bronze”? I’ve already convinced myself of my second move (Litecoin), but I am reaching out to the community to determine my third.
In yall’s honest opinion, what is the copper/bronze of Crypto? I truly look forward to the comments more than I do the tips or likes. I really want as much input as I can get from those of you who are more knowledgeable than me.
I know where I’m putting my gold, and I know where I’m putting my silver … where do I put the copper/bronze?
