Bitcoin is well above its previous record, thanks in part to the capture of the digital gold narrative in 2020 with institutional investors. But as those entering cryptocurrencies consider diversifying beyond BTC, one crypto entrepreneur and trader says Ethereum is the digital version of currencies, not Litecoin as it has long been called.
This is this trader’s case for why Ethereum is a better crypto currency than Litecoin, but why the comparison still favors the early Bitcoin core spinoff.
Bitcoin Bull Breakout Comes In Fresh Crypto Blood, Industry Veterinarian Offers Diversification Advice
Bitcoin is the first ever cryptocurrency, designed by Satoshi
“href =” https://www.newsbtc.com/dictionary/satoshi/ “data-wpel-link =” internal “> Satoshi Nakamoto. Nakamoto’s writings referred to gold as it sought to create a digital currency that also had merchandise features that would encourage its consumers to “collect” it.
Today, there is a better term for collecting BTC: hold. The limited supply of just 21 million BTC, makes the asset even finer than gold and beats the precious metal in almost every way possible. Bitcoin cannot be forged, does not need to be physically stored or carried, and can be moved at a fraction of the effort and cost, without any need for security or fear (unless you are a bitch, abuse of direction).
Related Reading Naysayer Gold Is Turning To Bitcoin: Overrated, Model Says BTC’s $ 74K Maximum Value
The digital gold narrative has gained ground on the real thing, and investors may soon be looking for the digital evolution of silver. Entrepreneur Qiao Wang claims that for those wondering which crypto asset best fits that bill, it’s Ethereum and not Litecoin.
Litecoin has long been referred to as digital currency, but Wang used a theory borrowed by Paul Tudor Jones that cryptocurrencies can be “valuable” or “industrial” assets.
Litecoin peaked alongside Bitcoin in 2017, while Ethereum and other altcoins followed | Source: BTCUSD on TradingView.com
Which Crypto Asset Is The Better Digital Currency: Ethereum Or Litecoin? Precious Or Industrial?
The analogy itself makes sense, but Wang’s interpretation of it may not match. There is no reason to drop Ethereum in favor of Litecoin, and that is not the point about to be made.
Wang says Bitcoin is “valuable” and Ethereum is “industrial,” but Litecoin is “not.” But that doesn’t fit with what the community has already designated these assets as.
Litecoin has already won the moniker of digital currencies and has worn that crown for years. Ethereum as an “industrial ‘crypto asset is right, which is why it is used as” gas “for transactions.
Indeed Silver has more industrial use than gold, for example, in renewable energy. But the reason it has value is because it is considered “precious” metal.
Simply put, the definition of the term valuable means something of great value or high price, which is initially subjective. But in the context of scarcity, Litecoin is the closest comparison to Bitcoin, and so if the digital gold narrative is to be believed, then there’s no denying that Litecoin is a digital currency.
Related Reading Ethereum BTC Trails, But Likely Basic Strength to Drive It Higher
There is no knock to Ethereum that arguably has much more value than Litecoin, which is why it commands a much larger market cap. But for crypto investors seeking digital currencies, Litecoin is the better direct comparison.
Compared to Bitcoin’s 21 million BTC, there are only 84 million LTC. It is currently the cheapest of the four coins listed on PayPal, which has around 350 users.
If every single user wanted to buy even one Litecoin, it would only cost 0.24 LTC per user. If this kind of shortage is one of the things that makes Bitcoin the most magical, it makes no sense why it wouldn’t matter to Litecoin as well.
The asset was born from Bitcoin code, has a similar block reward halving mechanism, and more. Ethereum has a current supply of 113 million. The maximum total supply is something no one knows, but it accounts for a large amount of gas in the future.
Featured image from Deposit Photos, Chart from TradingView.com