The general cryptocurrency market started the week on a wrong foot, with the bearish trend returning once more and negating the gains accumulated by cryptocurrencies over the weekend. The return of the bears could see the prices of most cryptocurrencies dip low. Litecoin, just like others could be affected by the general market trend, and even though it feels risky, the best option now is to hodl.
What makes LTC a hodl?
This cryptocurrency has made giant strides over the past few weeks by announcing several partnerships while also being accepted as a means of payment on numerous sites and platforms. There are expectations that this trend will continue as Litecoin’s development team keeps pushing for global adoption. The general attraction of LTC is its secure network which also guarantees users faster and cheaper transactions in comparison to leading cryptocurrency, Bitcoin.
The founder of Litecoin, Charlie Lee while reacting to the recent attacks on Bitcoin Gold (BTG) and Verge (XVG), stated that even the use of 5 different algorithms by Digibyte for mining didn’t make the network secure. This means that all smaller cryptocurrencies are currently at risk of facing similar 51% attacks.
Here’s a quick analysis to show that DigiByte’s 5-algo system isn’t more secure than Litecoin. To match the whole DigiByte network, it costs about $27MM and $1k/hr. to attack. But since global hashrate for each algo dominates DigiByte’s, it can likely all be rented for <$5000/hr.
The poor security of some of these cryptocurrencies is one of the reasons that would drive mainstream companies to use Litecoin over other coins, with its network one of the most secure in the space. This could be very important in pushing Litecoin towards more mainstream use.
For investors of the currency, hodling means that they hope for it to be accepted as a payment currency by most online merchants. If the use of the coin goes mainstream, then it would lead to the value of the cryptocurrency increase over time due to an increased demand.