Is Litecoin massively undervalued?

[imrer]

Why do you think LTC is piece of shit? Why would be successful only BTC? In comparison to other crypto LTC has few features to offer.

[klee]

Why do you think LTC is piece of shit? Why would be successful only BTC? In comparison to other crypto LTC has few features to offer.

I am too bored to explain (sorry mate) and I hope people do not take it personally - I am just honest on how I feel.

Let's say I hate the speculative trolls it has gathered (see btc-e trollbox).

And all I see by far is a pump & dump coin...

[Notanon]

Perhaps a correction is underway.

[beegatewood]

Yes, massively undervalued, it is on its way to $10...

[haightst]

Litecoin wow hope you guys are seeing this ~ to the moon! 

[DeathAndTaxes]

The price is the result of supply&demand equilibrium, and not result of electricity wasted.

The price is always the result of supply and demand equilibrium -- but you don't think the cost of production plays into the quantities of a commodity that people are willing to sell for a given price (supply)?

No.  If it was then GPU miners would simply keep mining and sell their coins for $800 per BTC.   Miners have almost no pricing power.   If difficulty gets too high relative to price then some miners will quit and difficulty will go back down.

[tacotime]

The price is the result of supply&demand equilibrium, and not result of electricity wasted.

The price is always the result of supply and demand equilibrium -- but you don't think the cost of production plays into the quantities of a commodity that people are willing to sell for a given price (supply)?

No.  If it was then GPU miners would simply keep mining and sell their coins for $800 per BTC.   Miners have almost no pricing power.   If difficulty gets too high relative to price then some miners will quit and difficulty will go back down.

Uh...? You don't think the boom in the beginning of the year had anything to do at all with ASICminer and Avalon suddenly controlling almost all of the newly generated BTC supply?

[DeathAndTaxes]

The price is the result of supply&demand equilibrium, and not result of electricity wasted.

The price is always the result of supply and demand equilibrium -- but you don't think the cost of production plays into the quantities of a commodity that people are willing to sell for a given price (supply)?

No.  If it was then GPU miners would simply keep mining and sell their coins for $800 per BTC.   Miners have almost no pricing power.   If difficulty gets too high relative to price then some miners will quit and difficulty will go back down.

Uh...? You don't think the boom in the beginning of the year had anything to do at all with ASICminer and Avalon suddenly controlling almost all of the newly generated BTC supply?

No.  Correlation is not causation.  Why would Avalon miners not sell coins at a higher rate than GPU miners?  The number of miners is irrelevant the amount of production remains the same.  If anything the continually rising hashrate means that production is about 30% higher than the target.  Still the amount of coins relative to daily trading volume is a small fraction (and shrinking).   

[hoewer4what]

Why do you think LTC is piece of shit? Why would be successful only BTC? In comparison to other crypto LTC has few features to offer.

LTC  is no piece of shit, but I still feel LTC  is overvalued. There is not much you can do with LTC, and did you read about LTC in mainstream news ?

[tacotime]

The price is the result of supply&demand equilibrium, and not result of electricity wasted.

The price is always the result of supply and demand equilibrium -- but you don't think the cost of production plays into the quantities of a commodity that people are willing to sell for a given price (supply)?

No.  If it was then GPU miners would simply keep mining and sell their coins for $800 per BTC.   Miners have almost no pricing power.   If difficulty gets too high relative to price then some miners will quit and difficulty will go back down.

Uh...? You don't think the boom in the beginning of the year had anything to do at all with ASICminer and Avalon suddenly controlling almost all of the newly generated BTC supply?

No.  Correlation is not causation.  Why would Avalon miners not sell coins at a higher rate than GPU miners?  The number of miners is irrelevant the amount of production remains the same.  If anything the continually rising hashrate means that production is about 30% higher than the target.  Still the amount of coins relative to daily trading volume is a small fraction (and shrinking).  

Because if you don't sell the coins, you constrict the supply entering exchanges, thereby disrupting supply-demand equilibrium and pushing price up?  The volume of coins traded daily on an exchange is small compared to the total supply of coins.

[cryptoanarchist]

I think the powers that be think they can control bitcoin by regulating exchanges. I've seen a few mainstream articles that portray bitcoin more as a "payment processing system" than an alternative currency.

That is probably why you see so much LTC hate that sounds identical to the bitcoin hate from 2 years ago - the idea of a whole market of cryptocurrencies will completely take over the dollar and it will be impossible to regulate AT ALL.

[DeathAndTaxes]

The price is the result of supply&demand equilibrium, and not result of electricity wasted.

The price is always the result of supply and demand equilibrium -- but you don't think the cost of production plays into the quantities of a commodity that people are willing to sell for a given price (supply)?

No.  If it was then GPU miners would simply keep mining and sell their coins for $800 per BTC.   Miners have almost no pricing power.   If difficulty gets too high relative to price then some miners will quit and difficulty will go back down.

Uh...? You don't think the boom in the beginning of the year had anything to do at all with ASICminer and Avalon suddenly controlling almost all of the newly generated BTC supply?

No.  Correlation is not causation.  Why would Avalon miners not sell coins at a higher rate than GPU miners?  The number of miners is irrelevant the amount of production remains the same.  If anything the continually rising hashrate means that production is about 30% higher than the target.  Still the amount of coins relative to daily trading volume is a small fraction (and shrinking).   

Because if you don't sell the coins, you constrict the supply entering exchanges, thereby disrupting supply-demand equilibrium and pushing price up?  The volume of coins traded daily on an exchange is small compared to the total supply of coins.

You haven't proven that ASIC Miners withold coins at a higher rate than GPU miners did.  I mined with GPU for 18 months and sold less than 10% of my coins to cover electrical costs.  Still while daily volume may be lower than total supply it is much larger than the rate of NEW production.  New ASIC miners don't "own" the complete supply they only "own" the newly created coins which is a tiny portion of the market now.  It was different in 2010 when the daily production was sometimes more than daily exchange volume but those days are gone.

[tacotime]

You haven't proven that ASIC Miners withold coins at a higher rate than GPU miners did.  I mined with GPU for 18 months and sold less than 10% of my coins to cover electrical costs.  Still while daily volume may be lower than total supply it is much larger than the rate of NEW production.  New ASIC miners don't "own" the complete supply they only "own" the newly created coins which is a tiny portion of the market now.  It was different in 2010 when the daily production was sometimes more than daily exchange volume but those days are gone.

Well, that's true, I didn't spend most of the coins I mined with GPUs either, but I meant more of that being a possible example of how the spending of coins mined might affect price.

Since we have actual data, I suppose an interesting thing to do would be to track how coins are spent after being mined in a block, and then see if we can use this to predict historical BTC prices.  I suspect this might be difficult because of the way pools are setup, but it's a neat idea.

[GimpyPrime]

In regards to electricity costs it depends where you are in the world. In Europe I hear utility costs are very high and mining is less economical there, but in Canada rates are much lower. The value of a coin is not tied to electricity costs as another user pointed out. When electricity costs become greater than earnings that is when hashing capacity drops, then of course difficulty is readjusted. It is going to be a constant fluctuation.

As far as LTC value goes I think it is priced correctly although I see it going up in the future for sure. As it has been pointed out many times before the only way to compete with Bitcoin is to offer some major differences or advantages, small tweaks to the protocol just make it a copy cat. However I believe the memory intensive Scrypt hashing qualifies as significant enough of a difference to lend it credit. I don't think it will replace Bitcoin but I think they will co-exist for a very long time to come. I also believe there will be a 3rd player that will eventually come out with another p2p currency with other distinct differences.

Also remember, rising tides raise all boats. As public opinion improves for Bitcoin it will have positive impact on all crypto currencies. I wouldn't be surprised if LTC hits $20 in the next 12 months.

[tacotime]

^^ Slight aside, but I'm in Canada and I pay $0.15 / kWh.  The rates are technically pretty low, but after taxes and nebulous fees I end up paying that much.

[Scott J]

I think that it's overvalued..

this is what i was thinking.

It literally has no real reasons to be worth this much, except for being the oldest adopted alt.

I think you have precisely explained why it is worth as much as it is. Network effect. 

[over1977v]

I pay about $0.25 / kWh, so Litecoin is really massively undervalued from this point as I cant GPU mine with a profit.

[haightst]

http://spectrum.ieee.org/computing/networks/bitcoins-computing-crisis


interesting mentions LTC as BTC alternative! 

[YipYip]

^^ Slight aside, but I'm in Canada and I pay $0.15 / kWh.  The rates are technically pretty low, but after taxes and nebulous fees I end up paying that much.

I agree part of the depressed LTC price has to do with the bubble of GPU's comming onto the network earlier in the year and teh fact that they all needed to get ROI or a large part of it

[Skinnkavaj]

I pay about $0.25 / kWh, so Litecoin is really massively undervalued from this point as I cant GPU mine with a profit.

I pay $0.00 /kWh 

You steal electricity then. Someone is always paying in the end.