Bitcoin-Litecoin ratio returns to historic norm, Peercoin climbs 200%
to record highs, reaching as high as $1,141 on Bitstamp, it is joined in
growth by a number of alternative digital currencies. The most visible
has been litecoin, which has returned to what might be considered a
normal trading range relative to bitcoin. Litecoin is not alone in its
gains, with others like Peercoin and Namecoin making similar gains.
over the past week, surprising many with its meteoric gains and
crossing of one billion dollars of market capitalization. Yet, the
dynamics in which it is actually traded are often overlooked,
particularly its relationship to bitcoin. On BTC-e, the leading litecoin
exchange by volume, the bitcoin-litecoin currency pair is traded with
as much or more volume as litecoin-dollar. It also regularly dictates
movement as visible through a series of technical factors.
litecoin and bitcoin are beginning to show signs of trading in a manner
similar to gold and silver. In particular, maintenance of a banded
price ratio is a dynamic well known to the precious metals and once
again proving its potential applicability to digital currencies. While
the original research on the matter explains in more detail, those
watching the ratio may well consider the latest litecoin-dollar gains to
be an expected correction. Having fallen out of range amid bitcoin’s
800% climb in the past month, it has since normalized.
alternative mining implementation based not only on bitcoin’s
proof-of-work scheme, but also a proof-of-stake. The proof-of-stake
system distributes new coins based on holdings rather than just finding
correct hashes. While PPC / BTC remains the dominant currency pair for
the altcoin so far, PPC / USD was recently added on BTC-e, leading to a
massive jump in its exchange rate.
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There are dozens of digital currencies that are all going insane right now
We just told you why another cryptocurrency, Litecoin, has been able to ride Bitcoin’s digital coattails to a 400% gain over the same period. But Litecoin is not alone.
According to that site, Peercoin, which now has the third-largest
market cap among digital currencies, is up 22% in the past 24 hours.
Peercoin‘s main feature is that it’s based on a protocol which, though
different from Litecoin‘s, achieves the same effect of preempting mining
cartels from forming and gaining too much control over prices.
Namecoin, with the fourth-largest market cap, is up 70% in the past
24 hours. Its principal attribute is that it exists outside the regular
Internet and therefore beyond control of The Internet Corporation for Assigned Names and Numbers (ICANN), the Internet’s regulatory body.
Open your free digital wallet here to store your cryptocurrencies in a safe place.