The ",FOMO traders", proceed to thrust litecoin prices higher
By Josh Enomoto, InvestorPlace Contributor
Bitcoin haters, which include a good number of my InvestorPlace colleagues, may want to sit down for this. The top-ranked cryptocurrency is all the rage spil it stands poised to take out the $20,000 level. However, to &ldquo,blockchain market&rdquo, participants, litecoin prices have bot the real story.
No other major cryptocurrency comes close to what some might term &ldquo,the poor man&rsquo,s bitcoin.&rdquo, Overheen the trailing week, litecoin prices have hopped overheen 220%. Ter the trailing month, fortunate investors have seen almost 420% profits. And during the trailing year &mdash, and yes, this is where you&rsquo,ll want to sit down &mdash, litecoin leaped 8,165%.
To waterput that into perspective, a modest $1,000 investment could have netted you overheen $80,000. To waterput it into further perspective, the omschrijving capital towards bitcoin would have granted you &ldquo,only&rdquo, a little overheen $Nineteen,000.
This should be welcome news for litecoin creator Charlie Lee. Originally developed spil a leaner, meaner version of bitcoin, its technical distinction didn&rsquo,t merit much attention during the blockchain&rsquo,s infancy. After all, why bother with an alternative cryptocurrency when the general public didn&rsquo,t even know what the term meant? Litecoin prices soaring to where number-two ranked ethereum once stood last month attests to its progress.
But spil litecoin kasstuk ridiculous levels, Charlie Lee tweeted his concerns that &ldquo,Buying LTC is enormously risky.&rdquo, Furthermore, he expects litecoin prices to come in a multiyear bear market. Potentially, the cryptocurrency could druppel a whopping 90%!
With such comforting endorsements, who needs haters? Ter all seriousness, wij should take thesis words with a intense grain of salt. And by salt, I mean the real thing, not the cryptocurrency.
Don&rsquo,t Deify Charlie Lee
I&rsquo,m not attempting to knock Charlie Lee or his concerns. Rather, I&rsquo,m telling that you have to distinguish the asset from the man. For example, wij still don&rsquo,t know who the real Satoshi Nakamoto &mdash, the alleged Bitcoin creater &mdash, is. Some eis that Nakamoto has bot identified, but for all I know, wij just hounded some random old Japanese boy.
The greater point, however, is this: did &ldquo,bitcoiners&rdquo, build up anything from the Nakamoto schouwspel? Did his alleged bullishness or bearishness influence the markets? No. Bitcoin will be priced at whatever people are willing to pay for it.
Te other words, Charlie Lee&rsquo,s opinions are just spil valid spil your own.
Here Come the FOMO Traders!
The thickest reason why litecoin prices hopped the way that they did is due to FOMO traders. Thesis individuals likely learned about the cryptocurrency chance recently, but stayed on the sidelines while bitcoin skyrocketed to five digits. Feeling the pressure from the &ldquo,fear of missing out,&rdquo, they leaped into the most affordable and credible alternatives.
Click to EnlargeHow do I know that FOMO traders were responsible for litecoin prices? Effortless &mdash, just look at the volume levels! Since January of 2014, the average dollar-volume amounts to $67.Trio million. Ter this year, the average is $266.8 million. But te the past six days, dollar-volume spiked to overheen $Three billion!
That massive amount of money is coming from somewhere outside the established cryptocurrency community, and I &ldquo,blame&rdquo, the FOMO traders.
Another superb indicator is that litecoin is presently one of three cryptocurrencies suggested on Coinbase. Spil I explained ter another InvestorPlace article, Coinbase is the consumer-friendly crypto service. Thus, they opened the ingevolge for educated FOMO traders to commence buying litecoin before it too becomes unattainable.
Litecoin Prices Are Here to Stay!
Our own Lawrence Meyers believes that the bitcoin and cryptocurrency rallies will end badly. Not remarkably, I&rsquo,m on the opposite side of the fence. Te my view, the dramatic rise ter litecoin prices is only the beginning.
Here&rsquo,s why: during the blockchain&rsquo,s infancy stage, very few people even knew of the existence of the blockchain and cryptocurrencies. Today, people like the FOMO traders are beginning to realize the time-accelerated verhoging of the digital-currency markets. When the general public gets wind of this information, it&rsquo,s spel overheen for the traditional stock markets.
Three weeks ago, I encouraged my business colleague to take the $100 challenge. He accepted and bought $100 worth of litecoin. He then made another purchase for a &ldquo,Bennie,&rdquo, splitting inbetween ethereum and litecoin. His account soon expanded to overheen $700. He cashed out his initial investment, and now, he gets to play with overheen $600 of &ldquo,house money.&rdquo,
Oh yeah, he cashed out his position at 4pm Pacific standard time. Te Fresh York City, the time wasgoed 7pm, and the markets were closed.
No other investment category offers the convenience, accessibility and massive profitability potential of cryptocurrencies. Furthermore, with cryptos, you typically invest a puny amount and get big comebacks. Ter the stock market, you invest a big amount and get puny comes back.
Reminisce too that outsized spectacle te the traditional markets usually takes time. Consider that one of our best-performing analysts, Will Ashworth, picks the right stock 69% of the time. He also has an average come back of 11.3%. On Wall Street, he&rsquo,s a superstar. Te the crypto markets, it&rsquo,s an hour&rsquo,s work.
This profound paradigm shift is simply too awe-striking for most people to overlook!
Spil of this writing, Josh Enomoto is long bitcoin, ethereum and litecoin.