Why is Litecoin so cheap?

[300]

There are supposed to be four times more litecoins (84 million) than bitcoins (21 million) so with everything else being equal, Litecoin should cost 1/4 that of Bitcoin. But Litecoin is currently trading at about 10 dollars each while Bitcoin is trading at around 400-500 dollars each which makes it undervalued by a factor of 10.

Has it got something to do with the distribution curve (ie. more litecoins are produced in the first few years compared to Bitcoin)?

[Ed4252]

More places are currently accepting Bitcoin compared to Litecoin so the demand is greater.

[sonysasankan]

so with everything else being equal

But they are not equal.... bitcoins are mined with expensive ASICs and the difficulty is crazy, hence making it very difficult to get them even with the TH/s farms. Litecoins on the other hand are mineable with any GPU and the difficulty is relatively easy compared to bitcoin. That means more litecoins are sold to the highest bidder. Once scrypt asics come in the form of heavy artillery from knc and other such manufacturers, litecoins too will get rarer and more difficult to mine, making the price go up and should eventually (theoretically) stabilize at 1/4th - 1/5th of bitcoins prices. Gridseed farms are getting popular now and its only a batter of time before the tanks roll out. If you're thinking long term, litecoins are an excellent buy right now.

[Stevenrm87]

Because the top 100 LTC addresses possess over 50% of all available coins in circulation.

[kelsey]

Because the top 100 LTC addresses possess over 50% of all available coins in circulation.

Maybe because alot of them address are exchanges and similar holding many peoples coins.

[Stevenrm87]

Because the top 100 LTC addresses possess over 50% of all available coins in circulation.

Maybe because alot of them address are exchanges and similar holding many peoples coins.

Which is a problem don't you think?

[kelsey]

Because the top 100 LTC addresses possess over 50% of all available coins in circulation.

Maybe because alot of them address are exchanges and similar holding many peoples coins.

Which is a problem don't you think?

Sorry lost, why would it be?

Also its impossible to map the distribution based on address' a) for the reason I mentioned early b) also for almost the opposite reason; large holders also spread the coins across address' for security (or they are idiots)........so either way any examination of the address' is no more accurate then a random guess.  

[kooke]

Maybe it's not that litecoins are cheap, but rather, that bitcoin is overpriced

[bcd]

Because the top 100 LTC addresses possess over 50% of all available coins in circulation.

Can you provide link to top 100 addresses?

[Stevenrm87]

Because the top 100 LTC addresses possess over 50% of all available coins in circulation.

Can you provide link to top 100 addresses?

Sure,

http://bitinfocharts.com/top-100-richest-litecoin-addresses.html

[tuneman1980]

Maybe it's not that litecoins are cheap, but rather, that bitcoin is overpriced

Sorry, but I believe that both Bitcoin and Litecoin are underpriced currently. 

[johnmatrix]

Litecoin price is about 1/40 of bitcoin and it has been historically at least 1/30 so yeah litecoin can be underpriced

[tuneman1980]

Maybe it's not that litecoins are cheap, but rather, that bitcoin is overpriced

Sorry, but I believe that both Bitcoin and Litecoin are underpriced currently. 

I meant to include this link showing the trend lines.

http://www.cryptocoinstats.com/priceforecaster.php

[freedomno1]

Litecoin price is about 1/40 of bitcoin and it has been historically at least 1/30 so yeah litecoin can be underpriced

True their are fluctuations in the rate that does make it seem like a deal at certain times

[Stevenrm87]

Litecoin price is about 1/40 of bitcoin and it has been historically at least 1/30 so yeah litecoin can be underpriced

And Feathercoin was generally 1/20th of what Litecoin was. Just sayin

[Hannah faeos]

There are supposed to be four times more litecoins (84 million) than bitcoins (21 million) so with everything else being equal, Litecoin should cost 1/4 that of Bitcoin. But Litecoin is currently trading at about 10 dollars each while Bitcoin is trading at around 400-500 dollars each which makes it undervalued by a factor of 10.

Has it got something to do with the distribution curve (ie. more litecoins are produced in the first few years compared to Bitcoin)?

Production and circulation are you using to evaluate the value is obviously unreasonable.

Can determine the value of the only requirement

[Amph]

because asic are dumping like crazy

[El Dude]

Ok everybody calm down , El dude is here to put the trolls in their place.

because asic are dumping like crazy

yes , because bitcoin asics "dumped like crazy" and the bitcoin price went down when asics came out , you fool. The opposite happened bitcoin went to $1200 when asics came out.

Litecoin price is about 1/40 of bitcoin and it has been historically at least 1/30 so yeah litecoin can be underpriced

And Feathercoin was generally 1/20th of what Litecoin was. Just sayin

Feathercoin lol , that coin is so dead and once btc-e delisted it , it will die just like chinacoin.

Because the top 100 LTC addresses possess over 50% of all available coins in circulation.

go look at peercoin and dogecoin and pretty much every other coin. see here http://bitinfocharts.com/litecoin/

most of these top holders are cold storage for exchanges like btc-e.

[Amph]

Ok everybody calm down , El dude is here to put the trolls in their place.

because asic are dumping like crazy

yes , because bitcoin asics "dumped like crazy" and the bitcoin price went down when asics came out , you fool. The opposite happened bitcoin went to $1200 when asics came out.

ehm no btc went to 1200 because of china, not because of asic, when KNC miner are dumping 1k btc a day

tell me why people should buy litecoin, when there are 300mh/s coming that will rape it so hard(the first one will rape it for sure)

not to mention that now litecoin is even more useless because there is no more difference between scrypt and sha256, both are centralized shit

[El Dude]

Ok everybody calm down , El dude is here to put the trolls in their place.

because asic are dumping like crazy

yes , because bitcoin asics "dumped like crazy" and the bitcoin price went down when asics came out , you fool. The opposite happened bitcoin went to $1200 when asics came out.

ehm no btc went to 1200 because of china, not because of asic, when KNC miner are dumpic 1k btc a day

tell me why people should buy litecoin, when there are 300mh/s coming that will rape it so hard(the first one will rape it for sure)

not to mention that now litecoin is even more useless because there is no more difference between scrypt and sha256, both are centralized shit

so your telling me ASICs making BTC harder to get had nothing to do with the rise to $1200 ? lol

Litecoin was never designed to be asics proof and no coin really is , unless you have a low marketcap and no one cares enough to develop a asics for it. You think gpu weren't centralized ?  like the two 7950s you had in your basement made a difference to the 10 000 gpu farms out there.