Amid the popularity of Bitcoin, Litecoin is another virtual currency that has gained the interest of global investors. With Litecoin considerably cheaper than Bitcoin, this has attracted Chinese investors.
The price of Litecoin was around $30 up until a few days ago, which is much higher than the $4.45 it was on November 7. It is important to note that Litecoin actually hit the $49.39 mark not so long ago.
From the above, we can see that the price of Litecoin has skyrocketed. Moreover, prices have climbed from 16 U.S. cents (its starting price) to its current price level. For those of you who follow the movement of virtual currencies will have noticed that the price of the ripple currency and, pricecoin and namecoin has risen in recent months.
On the other side of the euphoria, analysts state that it is not uncommon for other virtual currencies to have large price fluctuations on a regular basis. In fact, this may actually be a key reason for the speculation. With a large number of Chinese investors entering the market, the result could be a gradual increase in prices in the next 6 months.
Something which not many virtual currency enthusiasts know is that the initial number of Litecoin transactions on the China’s OkCoin platform now has more transactions than all other global platforms combined.
Now many analysts wonder if the high demand is just temporary speculation by Chinese and other global investors, or part of a longer term trend for Litecoin and other virtual currencies.
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