Bitcoin’s value has increased considerably over the past couple of weeks and years. In fact, during this period, bitcoin has completely overshadowed the other cryptocoins in the market and investors should not be blamed for preferring bitcoin over the latter. After all, it is bitcoin that is giving other cryptocurrencies a helping hand and not the other way around. Here is how bitcoin is helping other cryptocurrencies and why you should consider the investment advice of bitcoin’s most intelligent skeptics!
The Rise of Litecoin
One of the oldest altcoins or alternative cryptocurrencies around, Litecoin is the 4th largest cryptocurrency by market capitalization today. The only cryptocurrencies with a better market cap than Litecoin are bitcoin, Ethereum, and bitcoin Cash. Created by Charlie Lee—a former Google employee and Coinbase’ Director of Engineering, Litecoin reached $320 in value for the first time on Tuesday, December 12. Compared to the over 1,700% increase in bitcoin value, Litecoin has risen by more than 7,200% since the start of 2017.
Some financial commentators say that the recent increase in the value of cryptocurrencies such as Litecoin and Ether is due to the extraordinary performance of bitcoin in the past year or so as this has helped build the confidence of investors in cryptocurrencies. So, how exactly is bitcoin helping the other cryptocurrencies to grow?
How Bitcoin is Helping the Altcoins
The performance of bitcoin in recent times has helped build the confidence of investors in cryptocurrencies. While many people are interested in purchasing bitcoins, they cannot do it due to its exceedingly high price. This leaves them with one viable option: invest in altcoins or alternative cryptocurrencies such as Ether and Litecoin.
Another reason many people are considering investing in altcoins is that they expect them to experience the same increase in value as bitcoin. If we consider how these cryptocurrencies have performed in recent times, then investors are right to be hopeful. According to Cryptocurrency—a website that tracks and streams the prices of cryptocurrencies, the value of Litecoin increased to over $400 on December 12 which was more than twice its value on December 10. The site also revealed that the value of ether increased by 40% during the same time to reach an all-time high of $633.
Bitcoin is Helping Increase Investors’ Confidence in Cryptocurrencies
What is the reason for the increase in the value of the aforementioned-cryptocurrencies? Ask hundred people and you will get hundred different reasons for it. While one can credit bitcoin in part for this surge in the price of altcoins, there isn’t one single event causing this increase in the value of cryptocurrencies such as Litecoin and Ethereum. However, there is one thing that we can be almost sure of: investors have increased confidence in cryptocurrencies today and they are willing to dedicate their time, money and effort towards trading not just bitcoin, but also altcoins or alternative cryptocurrencies.
Bitcoin is giving other cryptocurrencies a helping hand by pushing investors towards them. Some investors believe that bitcoin is heading towards its climax and thus, have started to look at other options. And, this is helping alternative cryptocurrencies such as Litecoin and Ethereum to grow and increase in value.
What Bitcoin’s ‘Smartest’ Skeptics are Saying
Although the skepticism surrounding bitcoin has weared down over the years, it is still very much alive. The good news is that not all of this skepticism is bad. Some of it is actually useful for you.Here is what bitcoin’s most intelligent skeptics ate saying about the cryptocurrency from an investment point of view.
Private Blockchains are Not a Viable Option
Off late, private blockchains have been a hot topic in the cryptocurrency world. Even though people up are warming up to idea, Andreas Antonopoulos—an information security expert and one of bitcoin’s smartest critiques, believes that private blockchains are a fundamentally inept replacement for a conventional database. A major reason for Antonopoulos’ stance on private blockchain is their lack of compatibility with the technology’s core security premise.
While private blockchains will ultimately be managed by enterprises, the current blockchain structure has a decentralized myriad of hosts who ensure the share ledger’s integrity, without necessarily having a personal interest in its contents. Since the private blockchains will be managed by enterprises with a personal interest in their contents, the value of public blockchains such as bitcoin will eventually go down to zero. This points to only one thing—private blockchains are not a viable option!
Forks that Do Not Innovate Will Crash
According to Mike Novogratz—a self-made billionaire, a former hedge fund manager and one of the sanest voices on Bitcoin around, not all cryptocurrencies are created equal and thus not all of them can win. Novogratz has a very valid point here when you consider forks—a place where servers operators create copies of an existing cryptocurrency’s codes and assets by splitting from it. Spreading them thinner and thinner, forking spreads the network resources over time and forks such as Bitcoin Gold, bitcoin Cash, and Etherum Classic will crash if they fail to offer competitive innovations.
Avoid the ‘Uninformed’ Skeptics Like a Plague
The last bit of advice that Bitcoin’s smartest skeptics have for investors is that they should avoid their ‘uninformed’ counterparts like a plague. Recently, Jack Boyle—the founder of Vanguard, advised people to turn their heads and eyes away from bitcoin as he believed investing in the cryptocurrency was nothing more than buying the currency in hopes that you would be able to sell it for more at some point in the future.
Contrary to what Boyle or other uninformed skeptics of Bitcoin believe or say, the cryptocurrency has huge potential and value—it is set to become a truly unhackable and completely open global financial network, completely changing the financial landscape.For more news or investment advice related to bitcoin, get in touch with us today!
by Bobby J Davidson
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