Summary:

• Morgan Stanley doubts Bitcoin’s (BTCUSD on xStation5) appeal
• Litecoin (LTCUSD) could be the best performing among remaining cryptocurrencies
• South Korea is already poised to legalize BTC international transfers

The global cryptocurrencies market has decreased of late, however it appears that Litecoin could be the most valuable digital currency, at least according to Charlie Lee, the creator of Litecoin, who thinks that his virtual currency could exceed Ethereum’s price. On the face of it, it sounds ludicrously that LTC could overtake Ethereum (ETHUSD) in the market capitalization. On the other hand, a lot of people feel that the latter is way overvalued.

Lee explains that Litecoin actually has some things which Ethereum does not. It can scale which Ethereum is clearly struggling with. There is guesswork that the so-called lightning network is coming which may be released even before the Ethereum’s Raiden. Let us explain that both Lightning Network as well as Raiden are payment channels which allow payments to be securely routed across multiple peer-to-peer payment channels.

Furthermore, Morgan Stanley’s analysts downplayed potential of BTC as a legitimate currency. They noted that the number of online merchants accepting Bitcoin has dropped to just three, from five a year earlier. During the same period, the value of the cryptocurrency has soared more than 250%. MS added that the disparity between virtually no merchant acceptance and bitcoin’s rapid appreciation is striking.

Moreover, it’s worth mentioning North Korea is already poised to legalize Bitcoin’s international transfers as soon as next week. At the end let’s add that there is a tremendous risk for BTC which could emerge after July 31st when a deadline for moving to the new system is set. We’ll write more about it on Monday.

Litecoin remains below two important moving averages hence further gains could be limited. Source: xStation5