The Litecoin Boom: New Investment Opportunity?

Litcoin recently receded into the background for most users of crypto currencies. As a Bitcoin descendant, the currency didn’t seem to be a big feature. And in the then Bitcoin Crash, the Litecoin exchange rate also dropped enormously. But suddenly it looks completely different…

From approx. 2.01$ on 15.06 the price rose in less than a month to more than four times 8.18$ on 10.07. Within five days it doubled from 4.01$ (05.07) to 8.18$ (10.07, in the morning).

Phase 1: Extreme boom
The first phase is characterized by an almost surreal increase of the Litecoin price. At first the price rose to approx. 5$ and reached a high of 5,20$.

The English-language portal newsBtc regards the share price as overvalued. The analysis of the 240-minute chart showed that the price in dollars was much too high.

Bitcoin news about the trading volumes

The enormous increase shows a large increase in Bitcoin news. It is noticeable that very small volumes were traded before the boom and that the trading margins (minimum and maximum price) were close together.

The decisive moment
Apparently the rise in Litecoins’ share price is also related to the Greek crisis. The beginning of the boom happened around the same time as the announcement of the election results, when the Greeks voted not to accept the reforms of the EU any longer.

As with the Bitcoin, the issue is probably one of currency flight. Greeks save their money by buying in foreign currencies.

Phase 2: Great volatility (08.07.2015)
The Litecoin price fell from approx. 5.38$ to 4.41$ (approx. 18 percent loss). The current events show how volatile Litecoins currently are on the market. After a short time, however, it calms down again. In the end, it reached the entry price again.

It seems that the price continues to withstand the overvaluation. The price reacts shakily, but remains higher due to the massive volume.

Phase 3: Journey to the Moon (09.07)
The Litecoin covers a long way and continues in the upward direction: Since yesterday it gains another 18 percent and now rises to 6.15$.

Apparently, the high volume pushes the previous day’s high further upwards.

Everything a Bitcoin formula?

So far there are no reasons that speak for the enormous Bitcoin formula upward trend: The phenomenal increases of the crypto currency rates are not based on a rational explanation, the risk thus becomes higher.

Phase 4: Indecision (10.07, morning)
The Litecoin breaks all boundaries. From 2$ to 8$ the price literally explodes, but it doesn’t take long until the bubble bursts. Since yesterday’s rise was also not based on any new influences, this seems to be only about market psychology. That means: sooner or later the mood will change.

Until the early morning, the price rose to a high that comes very close to the record. With 8$ however the bubble seems to burst slowly. Then the price falls. Within shortest time the descent ends with only 5$ in the late morning (approx. 12 o’clock). Afterwards, the price remains constant between 5 and 6$, until it goes further down in the late evening and the price moves from 5,30$ to 4,35$. (22:30 hrs)

Phase 5: The future
Rarely have we seen such exciting price movements in Litecoin as last week. It is a psychological game between investors, followers and people who are betting on the crash. The trigger seemed to be the progressive rise in the price due to the currency flight from Greece, which set off the avalanche.

For these reasons it is practically impossible to give a reliable forecast for the next days & weeks. Since it seems to be more about psychological behaviour than real external factors, both options are open.

Possibility 1:

The Litecoin price continues to rise. It is – as the large trading volumes also suggest – a matter of panic sales that have initiated and driven the descent. In the long run it will settle down in the middle

Possibility 2:

The past few days have been a veritable peak that will disappear completely into thin air. The price drops back to its approximate level of two weeks ago and levelled off at around 2 dollars. However, this possibility seems very unlikely if you look at the strong counteracting forces.

Blockchain for the revolutionization of international payment traffic

The blockchain seems to be made for use cases from the financial sector. By eliminating third parties, it offers enormous savings potential, which Bitwala would also like to take advantage of. The Berlin-based company wants to revolutionize global money transfers, among other things. Instead of long waiting times of more than one week for money transfers, Bitwala enables money transfers in a few minutes by using digital currencies. This is done by the customer paying the amount in his country of origin, exchanging the corresponding amount in Bitcoin, transferring it to the destination country and exchanging it there for the local Fiat currency. The fact that Bitwala excludes central interfaces such as the SWIFT network from the international money transfer process means that a small fee of 0.5% can be charged. This technological innovation has given the Berlin team, which now has 15 employees, great growth potential: In 2018, Bitwala expects a volume of 500 million euros for international money transfers. But that’s not all: The startup is now even starting up with Deutsche Bank. While the latter supports 38 currencies for international money transfers, Bitwala already supports money transfers in 30 different currencies. By the end of the year, however, they would like to catch up with Deutsche Bank.

Where is the blockchain in Germany?

One question that also BTC-ECHO keeps asking itself is the question of the progress of blockchain technologies in Germany. At the Distribute 2017, a separate discussion round was dedicated to this question, to which some of the speakers were invited. In the past, there was repeated criticism that German regulation prevented innovation. On the other hand, the discussion partners on the distribution side were of the opinion that the following three challenges in particular caused difficulties for blockchain distribution in Germany:

Regulation relevance

On the other hand, one should also look from the well-known scepticism at actual implementations – it was mentioned, for example, that Deutsche Bahn alone already employs six to seven people who deal solely with blockchain technology.

So has the blockchain arrived in the corporate context? Yes, according to the participants. The blockchain is still a technology that makes many things possible, but offers few use cases that can already be used in practice. This is primarily an organizational problem – at the senior level of companies, it is difficult for managers to justify dealing with blockchain technology. This is closely related to the “cannibalization of business” as discussed in the discussion. Since the blockchain eliminates many tasks through its disruptive power, it also gets rid of certain processes from certain services. Companies would therefore not always be interested in using blockchains because they would replace existing business models and deprive many parties of their raison d’ĂȘtre.