There is very complex chemistry going on in the current digital currency market. A week before we heard the Dogecoins community raised $30,000 and $6,500 to send to the Jamaican Bobsleigh Team and Indian athletes to the 2014 winter Olympics. We also heard how BitInstant CEO Charlie Shrem got arrested on the charges of money laundering. These are two distant news from the same community of digital currencies.
However, the only currency which has seemed to clear its way between the good and the bad is Litecoin. The currency, which has been termed as the silver to the Bitcoins, has really acted like its sidekick. One can notice when the news of Shem’s arrest was made public, the only currencies that faced its impact is Bitcoins, followed by Litecoins. Although, the value of Dogecoins also fell, but only by a marginal amount.
The reason why Litecoin’s value was heavily affected upon Shrem’s arrest is the digital currency’s habit of relying on Bitcoin’s popularity. Ever since its launch, the marketing propaganda of Litecoin for being the next best digital currency after Bitcoins is clear visible. The currency is probably trying to drive on the road constructed by its boss. An easy way, indeed! But little does it know that the fall is the same as success, proves the recent influence after Shrem’s arrest news went viral.
But does it mean Litecoin will fall if Bitcoin does? Or will it be the only best thing left? The answer lies in more news released two weeks before, mentioning Litecoin raising funds for jobless in Madagascar – a hint which the currency took from Dogecoin’s donations we just mentioned above.
So does it mean Litecoin is looking for a safe by being a profitable investment and a humanitarian currency at the same time? Even the Bitcoin community has donated a lot of money to WikiLeaks, but their reason seemed more like reverting back to government trying to resist them from growing. Meanwhile, a spokesperson for WikiLeaks also revealed the Litecoin community supporting the website.
We don’t know which way Litecoin is going, i.e. to make investors rich like Bitcoin has done, or to help society standing on its own like Dogecoin’s intentions. All one can say is, that it’s a safe way with an easy exit. Litecoin is indeed the currency to watch out for in 2014.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org