What to do with some of this quarter’s earnings profits? I’ve always been willing to gamble a little…(I’m still holding a half million Iraqi Dinar from Gulf War 2)…worth about a hundred bucks. LOL Already holding a little Ethereum (no Bitcoin…grrr)
Bought to Open Litecoin @ 55.15
From a newsletter I get from a volatility guy that also dabbles in crypto:
Just shoveled some money into Litecoin at $50 (it is down from $80 earlier in the year). I put in double my original investment from 2013. I now have in Litecoin 10x the number of bitcoins I used to have. (I used to have 3x but now is up to 10x). Litecoin used to be $4 last year and was around $20-25 in 2013 when I first purchased. This investment here is a fraction of the money I made in bitcoin. I can see Litecoin hit $500-$1000 on the back of problems in Bitcoin quickly. It is already widely accepted by the same merchants, it is on Coinbase. It is the same exact technology, with a well-known founder and more democratic hashing algo. A payment interface can be ported from bitcoin to litecoin quickly. If at some point there are problems with bitcoin, the processing will switch over to litecoin. You can think of Litecoin as a better backup to bitcoin. In fact many think, litecoin is the better technology because mining is always bound to be more distributed than bitcoin. The biggest risk to bitcoin is a 50%+1 attack. 99% bitcoin in the world is held by a 1000 Chinese. Miners located in Chinese jurisdictions continue to have more than 50% of the mining capacity. The risk of 50%+1 attack in bitcoin becomes greater every day the more Xi Jinping consolidates power. If you end up with futures and options exchanges based on bitcoin, the Chinese will have a huge lever to pull in their relations with the US because they can trigger a financial crisis by pulling the rug under bitcoin. In fact, it wouldn’t surprise me if that is the long term game Jinping is playing.
SatoshiLite tweeted today: If Segwit2x miners manages to kill original chain with a 51% attack, Bitcoin will eventually lose the crypto throne. My bet is on Litecoin.
SatoshiLite is the biggest name in crypto after Satoshi. He is the creator of Litecoin and Director of Engineering of Coinbase. Real name is Charles Lee. In the pantheon of crypto greats, first you had Charlie Lee and then you had Vitalik Buterin. Litecoin is $50, it is following the same path of adoption that bitcoin has, it is barely $2 billion in market cap. I think the future of this crypto currency as an eventual backup to bitcoin operations is very bright. God forbid we have an actual problem with the bitcoin network, litecoin will spike like you have never seen anything else spike.
If litecoin goes down more, I will be shoveling more money into it.
If you have a crypto portfolio, my suggestion here would be to take 50% of your bitcoin which is at a pretty steep price here $7,000 and re-allocate the entire amount to Litecoin. Then as bitcoin goes higher and higher, sell and buy litecoin. If Bitcoin goes to 25K, you will triple your money. If Litecoin, goes to a meager $500 per coin, you will make 10x your money. This should be viewed as a long term investment with a horizon of 5 years. Within 5 years, I would not be surprised to see Litcoin see the same level of network and industry adoption as Bitcoin has today and as such it’s price can easily be 10x from current levels. The litecoin mining rules and limitation of supply are just as stringent as bitcoin’s. After Bitcoin futures and options succeed, you will have Ethereum futures and options and after that Litecoin. Bitcoin is the trailblazer, but the next big pot of money in crypto is in litecoin in my humble opinion. At some point the bitcoin players will look to diversity and litecoin will be option #2 after ethereum (and for many #1 due to the more constrained supply)