Litecoin & Inflation
Litecoin like bitcoin is a crypto asset not a currency. Well at least it is more beneficial to be this way. My interest in litecoin is that it shares the same exact properties as big daddy bitcoin. The catch is that it has 84 million coins that can potentially be in circulation compared to litecoins counterpoint bitcoin sitting at 21 million coins total. Litecoin has a rich history being nearly as old as bitcoin and having been in the top ten coins for market capitalization (litecoins worth) for nearly its entire existence. It is recognized by institutions such as grey scale trust which I might mention holds an incredibly insane amount of litecoin. Paypal only offers so four options in the buying crypto space of their platform. Litecoin is one of the four. Bitcoin is often touted as digital gold or gold 2.0. I find this to be true considering the properties that bitcoin holds as a store of value. It is scarce, private and non inflatable. Easy to transport and almost entirely theft prove. Almost. Litecoin shares all of these properties as a store of value though being less scarce. In fact litecoin is cheaper and faster to use as a method of payments. It is my opinion that litecoin will be the next fad when all the euphoria clears in this crypto mad dash to riches. Litecoin will survive the down fall that is inevitable to all these brand new cryptos that have no real use cases. For example “Doge” is exactly like fiat paper money. A system like Doge is the reason why bitcoin is prospering. Yet, here we are, in very unique times where logic seem to be absent in more areas than just the financial sector. I do own litecoin and I will be a HODLer for time to come. I am also an owner of some bitcoin but not nearly a full one. The idea of moving to a monetary system that is decentralized and non inflatable is incredibly beneficial for the little guys. This new gold rush we are all witnessing. If I might say, is a massive transfer of wealth that is unprecedented and on a grand scale like this were there are so many retail investors. That have adopted this new monetary system (supposedly) before massive institution's like banks. And quite frankly as of late many U.S. based firms have been discussing offering crypto and custodian serves for such assets. Meaning that these finical institutions are now going to be holding bitcoin for customers in the near future. A giant step from a number of years ago where real money saw bitcoin as a ponzi scheme. Bitcoin is so scarce that not every one can even own a full one. Same as litecoin not every individual can obtain one full coin if every single person wanted a coin. My belief is that when the smoke clears on all these other projects commonly known as shit coins. Few will be remaining and litecoin will be there.
Of course I do not have a crystal ball. And nope this is not financial advice but an essay of my personal feelings towards a cultural and economic shift.
What has been prompting this shift? Inflation.
The price of goods are increasing quite a bit. It would not be hard to see the price of corn, bacon and other products go on the rise. With the price of goods on the rise and stimulus’s the size of trillions of dollars getting pumped into the market. Items are more expensive and fiat paper money purchasing power dwindling. Individuals are losing money on two fronts. With taxes on the rise individuals are losing money on three fronts. We are starring at an economic disaster right in its eyes. But what do I know I am not an economic expert. I am merely a psychologist and philosopher or at least that is what my college told me.
In other words if individuals did not get a raise that is of the same percent as these goods being increased by. Well then those same individuals can not purchase that same amount of goods as they did the year prior. This is why there is a bet by many people on bitcoin and litecoin. Bitcoin and litecoin are suppose to be a hedge against inflation gaining more value than inflation rates. Given their history they are both doing the job rather nicely.
Litecoin often dubbed as the silver to bitcoins gold. Litecoin may be something that is rather valuable in the future. What this asset class will do to the world is still unknown. But I tend to give my opinion more on the evolution of our world as I see it.
