Is Litecoin Undervalued? That is why traders should be careful

A well-known analyst analyzes Litecoin (LTC) and checks if the price is reasonable in today’s market.

Litecoin is valued at around $ 14 billion this week after a tough crypto correction.

The host, who goes by the name of Guy, said that Litecoin, which has been around since 2011, has “not only survived but thrived” since its inception.

“It has all four of the qualities I mentioned … a payment use case, super-powerful tokenomics, universal acceptance, and the best slogan out there: crypto-silver.”

Guy pointed out that Litecoin’s recent uptrend before crashing into the $ 200 area could be driven by institutional demand as crypto investment giant Grayscale reports it acquired 80% of the Litecoin (LTC) offering that it sponsored in February Has.

Additionally, Litecoin, created by developer Charlie Lee, one of the early contributors to the Coinbase cryptocurrency exchange, is slightly more efficient than Bitcoin and was created in such a way that it can be more centralized than standard cryptocurrencies.

“Litecoin uses a special Proof of Work (PoW) consensus mechanism called Script. The script is designed to enable you to mine LTC using a normal computer. This makes the Litecoin blockchain more decentralized, as everyone can participate in the network.

This is in contrast to Bitcoin’s Sha-256 mining algorithm, which can only be mined using a specialized computer called Asic.

Guy also noted that Litecoin (LTC) developers work faster than BTC developers, which means it can be improved faster than the standard cryptocurrency.

However, the LTC developers may not be working fast enough or transparently enough, warned Guy. He also mentioned the fact that in 2017, one of the biggest crypto scandals to date, Charlie Lee sold all of his Litecoin in what some viewed as a betrayal, while Lee saw this move as critical to Litecoin’s future success.

“In fact, Litecoin seems to be missing more than one department. For a transparency that is not their strength and that is not an exaggeration to say that Charlie Lee sold all of his Litecoin in 2017 was treason.

As the Litecoin developers are working hard, its growth rate appears to have slowed down, although it is still much faster than Bitcoin.

SN_Nour

According to Dailyhodl

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