The trading volume from one Litecoin exchange in China has exceeded total trading volumes from other countries.
“They can’t afford Bitcoin, so they try Litecoin instead.”
Bitcoin madness has attracted many eyeballs, and its “brother” Litecoin is among the winners too. Data has shown that since Litecoin’s relatively less costly than Bitcoin, Chinese investors have gained control of the global Litecoin trading.
Chinese investors gain control of Litecoin trading
Compared to the popularity of Bitcoin, Litecoin is gaining global support as well. From November 17 to 27 last year, its value had risen 300% in just 10 days. Its value even shot through $300 at one point.
Litecoin is considered “cryptocurrency with improved algorithms from successful Bitcoin” There’s even a saying of “Bitcoin gold, Litecoin silver” in the industry.
From the beginning of 2014, Litecoin’s value has rose multiple times, and sometimes even doubled in a day’s time, similar to the speed of hurricane. Meanwhile other competitors such as PrimeCoin, BioCoin, Ripple etc have gone from a few cents to a tens of dollars.
Analysts have said that those cryptocurrencies with smaller market cap than bitcoin are more prone to volatility in value. With global effort in promoting digital currency, Chinese investors have joined the Litecoin race and gained control of the global trading volume.
Currently, larger international exchanges include Cryptsy.com and Crypto-trade.com. According to BitcoinExaminer.org, China not only is the biggest market for Bitcoin, its total Litcoin trading volume is larger than all other countries combined. The Litecoin trading volume from OKCoin exchange is larger than all other exchanges’ total volume.
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We observed that within 24 hours, the trading volume for Bitcoin is 56,664 coins, while Litecoin reached 6,516,884 coins bought and sold, almost 100 times than Bitcoin. “Litecoin is more affordable than Bitcoin, therefore it’s more attractive to individual investors,” an experienced Bitcoin investor said.
However, some people made money, some got burnt by the digital currency craze. “Last month, I bought Litecoin when the price was around $50. After that the price plunged to around $30 in less than a week. I cut down the losses by selling them, and lost some money.” This experienced investor’s failure in buying Litecoin shed some light for interested investor: most people don’t really understand cryptocurrency other than wanting to profit from speculation.
“Most of the new cryptocurrencies are pyramid schemes. The creators copied Bitcoin’s algorithms, modified a few variables and produced brand new currency. They operate by building a new coin, then generate a few blogs and forums. When the price surges they will sell the coins and leave the market,” an insider expressed his concern. Since Bitcoin’s invention, its alternatives flood the market.
For long term perspective, Litecoin and other competitors provide no confidence for investors, they are merely object of speculation.