I normally only write about gold and silver mining stocks. However, I did post a Bitcoin article once before (Bitcoin: Buy, Sell, or Hold). Now, I'm going to post one on Litecoin.
In my opinion, Litecoin has an excellent risk/reward profile. Below, I will outline the reasons why. If you have read a little about Bitcoin or Litecoin, then this article will give you information about what the excitement is all about.
Litecoin offers a unique opportunity. It's similar to a technology investment, such as the companies that invented computers or software. The valuation of the companies that survived, such as Microsoft (MSFT), Apple (AAPL), Oracle (ORCL), and Google (GOOG) (GOOGL), all exploded in value. For this reason, you didn't have to invest much if you got in early.
Today, it is still early for cryptocurrencies and Litecoin. The percentage of people who own Litecoin is tiny. If Litecoin is going to be successful, then the upside potential is huge. For this reason, a small exposure is all you need.
Litecoin is basically a copy of Bitcoin with a few differences. I think these differences actually give Litecoin an advantage over Bitcoin. Let me list some of them.
Litecoin has 4x as many coins. You may think this is a bad thing because they are not as rare. But it keeps Litecoin more affordable. This should allow Litecoin to outperform Bitcoin.
Litecoin transactions are 4x faster than Bitcoin. It takes Bitcoin 10 minutes to generate a new block of coins, whereas it only takes Litecoin 2.5 minutes.
Litecoin has a foundation that makes it much easier to make changes to the code base. Bitcoin, on the other hand, is a rudderless developer network that requires an extreme amount of agreement to make changes. This makes Litecoin much more adaptable and responsive to technological change.
