An Analysis of Bitcoin vs Litecoin and Gold vs Silver

The p-values of Fisher’s test are depicted graphically in Fig.10, with the results of the Fisher tests among the categorical variables in Table1 and the clusters . P-values lower than 0.01 are represented in purple color addressing the more significant associations. Corresponds, on average, with negative daily mean returns but moderate volatility3; therefore, the average returns are also lower for this intersection. This study aims to propose a new methodology that help us to arrange and understand the main trends of the market at a glance, based on the financial behavior of cryptocurrencies. Litecoin’s market cap in early 2020 was the highest ever-recorded, topping over ten billion U.S. dollars and a value that had increased by 100 percent since August 2020.

That makes transactions faster, and should make it cheaper to transfer LTC. One possible route for those wishing to use or hold Bitcoin might include making an account on a centralized crypto exchange, sending money from a linked bank account and then buying Bitcoin on the exchange. It is important, however, to comply with any relevant jurisdictional laws when purchasing Bitcoin or other cryptocurrencies, such as Know Your Customer and Anti-Money Laundering requirements. Celsius, a decentralized finance platform and one of the largest crypto lenders was a big source of negative Bitcoin market sentiment in mid-June. On June 27, Three Arrows Capital defaulted on a loan from Voyager Digital, worth about $350 million in crypto assets. 3AC was a major backer of TerraUSD/LUNA, the epicenter of last month’s stablecoin meltdown. The market cap is simply calculated by multiplying the total number of coins currently in circulation with the current BTC price.

How to trade litecoin

Whoever successfully unlocks the next block is rewarded with a set number of bitcoin known as “block rewards” and gets to add a number of transactions to the new block. They also earn any transaction fees attached to the transactions they add to the new block. Read more about mine litecoin here. In order to incentivize the distributed network of people verifying bitcoin transactions , a fee is attached to each transaction. The fee is awarded to whichever miner adds the transaction to a new block. Fees work on a first-price auction system, where the higher the fee attached to the transaction, the more likely a miner will process that transaction first. Over 2018, the entire crypto market plunged into what is now known as the “crypto winter” – a yearlong bear market.

Yermack analyzes Bitcoin market in-depth, and consider it an investment that is more speculative than a currency. Apparently, Bitcoin market poses high risk for the management of transactions, and credit markets. In conclusion, a deflationary scenario is anticipated owing to the limited number of bitcoins that can be issued . This study anticipated many aspects of cryptocurrency markets prevalent today .

Digital Silver: Why Litecoin Is Poised To Bounce Versus Bitcoin

Litecoins are generated faster than Bitcoin, but Bitcoin is worth more. Bitcoin might be better if you want more value per coin, while Litecoin might be better if you want more coins at a lesser value. Although technically transactions occur instantaneously on both the Bitcoin and Litecoin networks, time is required for those transactions to be confirmed by other network participants. Litecoin was founded with the goal of prioritizing transaction speed.

Bitcoin runs on a proof-of-work blockchain, which is essentially a chain of consecutive blocks containing transaction activity. Bitcoin miners run specialized computer equipment that constantly searches for the answers to complex math puzzles. Often valued in a pair with USD, Bitcoin price has increased massively over the years. BTC owners can store Bitcoin themselves and https://www.beaxy.com/exchange/eth-usd/ transact it globally, void of any limitations on hours of operation. BTC has also gained a significant amount of mainstream attention over time, likely due to public support from celebrities such as Elon Musk and adoption from companies such as PayPal. Satoshi Nakamoto, a pseudonymous person or group, published the Bitcoin white paper in 2008, laying out BTC’s concept.

You might also want to consider running some technical analysis on litecoin. The charts in the IG Trading platform come equipped with a range of indicators to help you identify trends, and plan your first trade accordingly. It may not have been Charles Lee’s intention, but one way in which litecoin is similar to silver is in the price relationship it shares with its more illustrious cousin. Where gold goes, silver often follows; where bitcoin goes, litecoin often follows. Negative headlines surrounding litecoin – or negative headlines surrounding cryptocurrencies in general – will tend to play out on its price in a big way. The all-time high price of Bitcoin was reached on November 29, 2013 as it touched $1,242 per coin, on the same day that gold traded for $1,240. The all-time high of Litecoin was reached on November 28, 2013 when it touched $48.47 per coin. In late April of 2011, the all-time high for silver was reached at $49.76 per ounce. This renders Litecoin’s all-time high to within 3% of the all-time high of silver.

The most positive forecasts showed that Litecoin’s price could grow to $370. Before we delve into Litecoin predictions and answer questions such as why LTC may be successful or fail once again, let’s quickly review its history, main features and future plans. Finder monitors and updates our site to ensure that what we’re sharing is clear, honest and current. Our information is based on independent research and may differ from what you see from a financial institution or service provider. When comparing offers or services, verify relevant information with the institution or provider’s site. There are other ways to convert your coin to cash, but they are too many to mention here.

Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author does not own Bitcoin or Litecoin. The Bitcoin network’s average transaction confirmation time is around nine minutes per transaction. The equivalent figure for Litecoin is roughly two and a half minutes.

Select your payment method with credit cards, debit cards, or any bank transfer and add your fund to your account. The Bitcoin SV blockchain is the largest of all Bitcoin forks, exceeding 2.5 terabytes in size. With this information, the portfolio manager could consider only the cryptocurrencies of Intersection 2 as a reduced universe of cryptocurrencies to apply a portfolio optimization model. Is helpful in enhancing the description of the market for the chosen time frame. (some activity the first 2-3 months of 2018, low trading volume in the remaining part of the year). According to the CVI index, the optimum number of clusters was 3. The descriptive statistics of the three centroids in ordinary values are shown in Table2; Figure1a show the scatter plot of the clusters.

In our case, we use them to represent the main trends in the cryptocurrency market. If several cryptocurrencies belong to the same clusters in the three clustering results, we can consider them to be very similar. We further inspect the relationships among the three clustering results with the help of visualization tools. However, it would be possible to combine the clustering results using different representations of cryptocurrencies, where each consider different aspects of cryptocurrencies.

Litecoin has had a brutal “bull market” if you can even call it that for the once popular cryptocurrency built on Bitcoin’s code. However, that all might soon turn around, as a massive bounce is brewing on the LTCBTC trading pair. In 2014, Adam Back, another cypherpunk and the inventor of Hashcash – a cryptographic hashing algorithm created in 1997 which used the same proof-of-work mechanism that Bitcoin would later adopt – co-founded Blockstream. Blockstream is a for-profit tech company that develops new infrastructure on the Bitcoin network, including Lightning Network and sidechains. Our platform allows you to trade 24/7 and track the prices of up to 40 cryptocurrencies. The drop in the Bitcoin-to-Litecoin ratio over the past few days from 135 to 116 has been driven by positive news for Litecoin. Major South Korean exchange Coinone has added Litecoin to its platform as of early November 2017. The exchange has reportedly processed $3.2 million worth of Litecoin in the first 24 hours of trading.

Consequently, it is highly volatile with large upswings, bubbles, and sudden market downturns. Instantly trade dozens of crypto assets in the Domain Money app, plus get access to stocks, ETFs and investment portfolio services. As Bitcoin’s adoption has grown over the years, more people have likely begun wondering how Bitcoin works. Bitcoin is a decentralized cryptocurrency that operates on its own blockchain that is secured and run by a vast global network of participants. It is a borderless asset that can be traded and transacted fractionally. Safeguarded by its open-source code, Bitcoin’s 21 million maximum coin supply makes the asset scarce and deflationary, unlike the U.S. dollar. Until recently, Bitcoin was considered a store of value that was somewhat immune to fluctuations in the value of risk assets. Today, Bitcoin and the broader crypto market are influenced by economic phenomena that move the value of risk assets—things like inflation, stock markets and Fed monetary policy. Litecoin is one of the oldest cryptocurrencies and one of the few to hang onto the top ten assets by market cap for several years at a time, even despite an inability to reclaim its former price record. LTC is the native cryptocurrency of Litecoin, an open-source blockchain project whose code is copied from Bitcoin’s.

It doesn’t get much better in 2023 but begins to pick up in 2024 when they expect Litecoin to trade as high as $202. Litecoin began 2020 in an uptrend that lasted until late February. The price peaked in the first quarter of 2020 at $84.50, then declined by more than 65% to set a yearly low at $25. LTC picked up slowly after that but picked up the pace towards the end of the year. In November, it had grown to levels above the previous yearly high set in February and in December, Litecoin traded above $120. At the same time, Charles Lee made a statement that he would sell all his LTC coins for system transparency. Many members were worried that this could cause a depreciation, but there wasn’t any correction. LTC is promoted by the not-for-profit organisation Litecoin Foundation. Today, there are only two full-time developers at this foundation. The other supporters are advisors, investors and ambassadors or play other roles.

We find that the aggregate computing power and network factors also price cryptocurrencies in this large out-of-sample data set. The study of stylized facts has been extended by increasing the number of digital coins to 222 (Hu et al. 2019). Similarly, we consider it important to include as many cryptocurrencies as possible in our study, to characterize the market fully. Corbet et al. analyzed the high growth of the cryptocurrency market and its heterogeneity since 2014 in depth. They consider different aspects including regulatory, cyber-criminality, market efficiency, and bubble dynamics, and make recommendations for further investigations on different domains. We consider a couple of them, and address some characteristics based on liquidity with the volume as a proxy, market cap, and other key metrics or ratios, such as the beta or Sharpe ratio.