A few weeks ago, Starbucks hinted that it would be adopting a crypto, but it won’t be bitcoin. Amazon too is rumored to be in the process of adopting cryptocurrency. The question on the minds of many is, which one will it be? If you critically analyze the crypto market as it is right now, it is not hard to see that Litecoin (LTC) will be the one, and that’s because of Litepay. You just need to understand the fundamentals of Litepay, as well as the motivating factors for these companies, then you will understand why LTC is the one.
Firstly, if these two companies were to adopt cryptocurrencies, chances are they would go for a stable crypto. It won’t make sense for them to accept a crypto that experiences wild price fluctuations. The risk just won’t be worth it. That’s where Litecoin’s Litepay comes into the picture. In its very nature, Litepay is designed to tame the wild volatility that is usually experienced in the crypto market. That’s because any payments made via Litepay can be settled instantaneously for fiat currency.
That’s the kind of stability that companies like Amazon and Starbucks would be looking for. It wouldn’t make sense for these companies to for cryptocurrencies that they can’t easily convert into fiat, with all the risks that come with holding fiat for long. Case in point is Steam which adopted bitcoin last year, then dropped it a few months later, citing excessive price volatility.
The second reason why these two companies are likely to adopt Litepay in 2018 is the issue of cost. Transaction costs have been one of the major hindrances to the adoption of cryptocurrencies. No corporation, at least not major corporations like Starbucks and Amazon, would add a cryptocurrency that only increases its cost of doing business. That’s why Litecoin (LTC) and its Litepay merchant system again emerge as top contenders. That’s because transactions done through Litepay are free.
In essence, by accepting Litepay, these companies would not only be giving clients an efficient way to pay for products, it would also cut down on the costs that such companies incur in settling customer transactions. That would be a plus to these corporations in two ways. First, it would endear them more to crypto diehards, and there is a growing number of them, which would translate to higher sales. The companies would also attract an even higher level of loyalty from existing customers since purchasing products would be a lot easier.
Thirdly, these two companies will use Litepay in 2018 because there is just no other crypto that fits the bill when compared to Litecoin. You are probably thinking, but bitcoin is way bigger, and better-known. Well, it is bigger and more recognized than Litecoin, but the transaction costs are just too high for it to be used as currency. Its transaction speeds don’t make things any easier. This automatically disqualifies bitcoin as a contender for adoption by any of these two corporate behemoths.
Ethereum too faces similar challenges. The rest of the cryptos just don’t have the clout for them to be adopted by a company like Amazon. For instance, it would be unlikely for Amazon to pick a random crypto, yet it has the capability to develop its own. If they were to choose a coin from the existing ones, chances are that they would go for Litecoin. Litecoin is in many ways similar to bitcoin, but beats is on issues such as costs and transaction speeds. On top of that, Litecoin (LTC) has the brand presence that many other cryptos in the market just don’t have. This makes it the most likely coin to be adopted by both Amazon and Starbucks, and with that, the adoption of Litepay in their platforms.
Now that is clear that Litecoin’s Litepay is set for adoption by Amazon and Starbucks, what does this mean to you as an investor? Well, as a Litecoin investor, this is the kind of news that should put a smile on your face. If Litepay were to be adopted by any of the two, the value of transactions going through the Litecoin platform would rise significantly, and with that the value of Litecoin too. That’s because the future value of Litecoin lies in the levels and value of transactions.
After all, it is positioning itself as the go-to digital currency, and therefore, transaction volumes are a critical value anchor. With that in mind, an adoption by these two companies, that have some of the highest transaction volumes on the planet, would easily push the value of LTC to the moon. The valuation of Litecoin could easily shoot to over $1000 a coin. Litecoin (LTC) fundamentals already support such a price rise. As such this adoption would just be a welcome catalyst.