I have analysed many different coins but it’s when I come back to talking about Litecoin that I really get arize.

So here we are today at the same LTC/BTC price of ~.01BTC as when this wormhole was created above. Since then, the price of Litecoin in terms of USD has gone from a high of $15 to the high in the last 24h of $150. A 10x gain over 8 months.

What I’m going to show to you today however is that this was this was merely a blip of growth compared to what is about to come. I see another quantum leap that will take Litecoin from .01BTC to somewhere around .25BTC which in today’s terms brings LTC to around $3,750 each.

I know that sounds crazy and even I have struggled to come to grips with it, but once you do the math and look at the following data, the penny will drop and LTC will make a push to at least .1BTC very, very quickly. I expect it will come sooner and more surprisingly than most will be ready for.

Silver to Gold. The analogy that works for everything except price ratio.

Litecoin is considered the Silver to Bitcoin’s Gold and it was created to make up for the shortcomings in Bitcoin. As BTC grew, Charlie Lee aka @satoshilite saw the shortcomings of Bitcoin. He saw that it was not capable of being the payments coin for regular day to day usage for your average person and was becoming more of a store of value, like a digital gold. Although an excellent carrier for high value transfers, the growing success of the Bitcoin network increased fees and mining difficulty which was enough to put BTC transfers out of reach for the average person. So Litecoin was born.

What is remarkable though, more than these technical differences, one could say the true genius of Charlie, was that he decided not to compete with Bitcoin and market itself as a replacement, but to be a companion to it. It is where the Silver to Gold analogy was born and something which has proven to be one of the greatest decisions made that many only realise now after 7 years the brilliance behind this decision.

There are many comparisons between LTC and BTC as there are to silver and gold raw materials, but when it comes to the raw math of calculating their values, that’s where the comparisons end. The analogy works in terms of Litecoin being faster and better suited for payments compared to Bitcoin but the current pricing ratio of Silver to Gold does not make sense when you apply it to crypto currencies.

It’s close enough to show that a lot of uninformed money uses the analogy to determine the price. Newcomers to crypto do not yet understand the fundamentals behind the supply and they do not yet know how to analyse real world utility, and how to evaluate scarcity. Let me show you some data.

Supply

First lets start with the most basic difference which is the number of coins that will ever be created. (In crypto we call this mining in other words, minted). True cryptocurrencies the people can get behind have a limited supply, meaning, at some point some central authority like a federal reserve can’t just decide to create many more coins and decrease the value of the currency you hold.

Another essential quality a good cryptocurrency should have is that whoever made it didn’t premine or stash away a huge chunk for themselves and give themselves god status should their coin ever make it truly to critical mass adoption. Everyone knows Litecoin has no premine, just like Bitcoin, and it has a fixed supply. I challenge anybody to come up with a coin which is trusted more than Litecoin in the community. The room goes silent. You can do the same — it’s not a magic trick — no other coin holds a candle to Litecoin for having the track record it does. We trust it’s spirit. It was made by the people for the people and is following the same parabolic network effect that Bitcoin has had. Otherwise, it is quite literally one of the most boring coins in the market, yet Bitcoin relies heavily upon it and we owe great thanks to the rise of the king to Litecoin. It’s a partnership. You can’t say Bitcoin would be where it is today without the help of Litecoin.

Now lets compare supply of Bitcoin and Litecoin.

Bitcoin will only ever have 21 million coins created. Of those, currently 16,731,775 are in circulation. 79% or so circulating right now.

Litecoin will only ever have 84 million coins created. Of those, currently 54,232,633 are in circulation. 64% or so circulating right now.

The difference? There are 4 times as many LTC as BTC that are ever going to be mined, however currently there are only about 3.2x as many LTC currently in circulation. All things created equally, if you used this indicator alone 1 BTC should be worth 3.2 to 4 times as much as 1 LTC which puts the BTC price anywhere from .25 to .31 BTC. Of course, it’s not that simple. We need to look more at utility and real world usage to understand why the price of BTC is justified (or isn’t) at 100x the price of LTC.

The other facet about supply is circulation and how strong are the hands holding what is in the supply?

When there are so many alt coins which parade more exciting features, many are surprised LTC has survived this long and why it continues to make gains. It’s simple: there are no holders like Litecoin holders. They have the strongest hands in the game. It’s the same kind of dedicated culture behind it which brought Bitcoin to where it is today.

Transactions