They have value but it’s much more based on speculation. If you look at Bitcoin, there’s an ecosystem of millions of users, overheen 100 thousand merchants including some of the world’s thickest companies like Microsoft, hundreds of bitcoin-focused VC-backed startups of which one had a valuation nearing half a billion dollars etc etc.
While it’s visible that bitcoins are overvalued te relation to this ecosystem (i.e. a substantial part of its price is based on speculation that the ecosystem will become massively significant te the future), there already is a genuine ecosystem out there with welvoeglijk growth rates.
Dogecoin or litecoin don’t have that. They have communities that keep them alive but there doesn’t seem to be a long term viability. This is different from bitcoin’s early days (which didn’t have any real ecosystem either at one point) ter that bitcoin actually suggested something radically fresh, while litecoin for example isn’t innovative, it wasgoed the very first me-too that didn’t totally screw overheen its early investors ter a pump &, dump scheme so it’s stayed around but it doesn’t opoffering anything special. Does that mean they have no value? Absolutely not. They do. But ‘me-too’ companies also have value ter the short-term. Te the long term they usually don’t get through. Wij’re already watching that, litecoin for example dropped insanely te price (like 90%) te the past year and that’s not just because bitcoin readjusted after late 2013’s hype cycle, it crashed against bitcoin itself, too, i.e. the market is already identifying that litecoin versus just bitcoin doesn’t have a future te the long-run. And if there’s ANYTHING you have to know about bitcoin is that it’s almost always spoken about te a long-term framework of reference. If wij purely look at the brief term then yes, wij can say dogecoin &, litecoin have value and so does bitcoin, but wij would also have to say that all three combined are absolutely insignificant, a druppel ter the ocean, the size of a mid-cap fund of which there are thousands. The short-term isn’t interesting, te the short-term me-toos exist, te the long-run they don’t.
Te brief, the reason people say litecoin has no value is not because it’s not being traded: that’s speculation. It’s that it is said to have no utility value overheen bitcoin. Bitcoin can power any utility litecoin can, with more liquidity, more market participants, more open-source libraries &, development, more funding, more security etc.
I don’t think wij’ll all be using bitcoins necessarily, but I do believe wij’ll all be using bitcoin (or no cryptocurrency at all, of course, that’s very possible, too). i.e. yes there are niches te digital currency, but the cryptocurrency niches will, I think, if they exist ter the long-term, be served by products running on top of the bitcoin network. Anything litecoin or dogecoin can do, a bitcoin treechain or sidechain or payment channel can do but with the above mentioned benefits. It’s like telling there are different niches te internet protocols, spil if to say the internet may run on many different protocols that serve different niches ter the long-term, instead of telling TCP/IP powers the internet and it has higher-level protocols that serve niches like http or smtp. Within that line of thinking, anything but TCP/IP has no long-term value and any niche te internet technology will be built on top of that one protocol. Similarly many who say ‘litecoin has no value’ think of bitcoin spil being the protocol for value transfer, and anything having to do with transferring value (or titles, contracts etc) will be built on top of it, rather than along side it.
Ter brief, the keuze that litecoin has no value (despite having a market value) makes a loterijlot of sense depending on what you believe about the future of cryptocurrency.