Game Theory Group

The Blockchain Brief

Why Litecoin is surging and what coins will pop next?

An attempt at simplifying blockchain concepts, companies, and coins.

I am sure many of you know that has Litecoin surged 500% in the past few weeks. Since then my friends have been incessantly asking me why and what coins will pop next.


Look, if I knew, I wouldn't be writing newsletters every morning in the freezing tundras of Boston or NYC. I'd most likely be chilling in some villa in Thailand, dictating copy to my admins as I swim in my private pool filled with Litecoin tokens. 

However, given that I am still in the states, drafting this at the crack of dawn, you can rest assured that I am still just picking coins using my spray, pray, and HODL technique. 

But I have to give you guys something given the click bait-y headline this AM, and don't you worry, I plan on delivering. The reason why I believe Litecoin ran so much in a short period of time boils down to a combination of 3 things, with the most weight on 1 and 3. 

1) More buyers than sellers
2) Asian whales buying up formula 1 race cars using Litecoin
3) The Coinbase effect. 

So 1 is pretty self explanatory (sorry nothing revolutionary there)

**Boris's Note: Well, actually it's about as revolutionary as it gets for a currency. Most currencies during most periods of time depreciate in value over time. The US dollar is worth 75% less now than it was when your parents were kids. Why? Because it's inflationary. Why? Because Uncle Sam has a green printer and uses it. You don't hear about pirates looking for buried c-notes for that exact reason. By the time they find that buried treasure, it's worth a whole lot less. Or nothing. Litecoin (my sweet, sweet Litecoin) is deflationary. Literally - it's supply is limited. New Litecoin is mined in a predictable way. Which means: if you buy it and choose to hold it as an investment, that's one less Litecoin available on the exchanges. And so, once enough of us choose to buy and hold, you'd have to really spend to pry my hands off my internet silver.**

...and 2 is kind of a joke (kinda). But 3 might actually have some legs, let me explain to you what the Coinbase effect is and what coins could potentially pop next (I know I have your attention now.) 

For those of you who don't know, Coinbase is one of the largest cryptocurrency exchanges based in the US. It has been catching headlines of growing by a 100,000 users after the CME futures announce (link to older newsletter on futures here) and even after that has been growing users by the tens of thousands on a daily basis. 

Currently on Coinbase, you can only trade Bitcoin, Ethereum and Litecoin. Even though there are over a thousand cryptocurrencies out there, a lot of them don't get as much attention since the mainstream masses are really only getting exposure to those that are listed on Coinbase. With that being said, you most likely have a lot of new & inexperienced money looking at the price of Bitcoin, thinking its too expensive, and flocking to the only other two options. Litecoin being the lowest priced out of all 3. As a result, why own .05 BTC when I can pick up a couple complete Litecoins and hope that one day it gets to the price of BTC. 

With that being said. Coinbase has the plan to add a number of additional tokens to the platform in 2018 and most likely those coins that get added will see a dramatic increase in price since Coinbase has such a large user base. So, cut to the chase Julian! 

What is Coinbase going to launch next?

Well my friends, after being glued to my portfolio tracker this morning from 5-6 AM, one of my friends from an asian crypto fund shot me over a POTENTIALLY leaked screenshot that was quietly circulating telegram. Double emphasis on the POTENTIALLY and I'll explain why later. 

Going around the Telegram channels. May be a fake. Be careful. DO YOUR OWN RESEARCH.

Going around the Telegram channels. May be a fake. Be careful. DO YOUR OWN RESEARCH.

In the screenshot, it shows 3 coins that Coinbase may launch in the near future. 

Ripple (XRP) - Enterprise blockchain solution for global payments. 
Monero (XMR) - Privacy coin
Dash (DASH) - Privacy coin with masternodes. Check out my older newsletter to learn more about masternode coins. My favorite of the 3. 

You need to take this screenshot with a BIG grain of salt. It's so easy to photoshop stuff like this now a days and get it circulating in the crypto sphere for quick pump and dumps so be cautious. However if you do your research, really believe in the power of these different blockchain technologies, decide to invest, and it happens to go on Coinbase in early 2018... wins all around. 

Now if you guys/gals make a ton of money off these trades, amazing. All I ask is you keep sharing the Blockchainbrief love with all your friends and i'll keep working towards getting you all of your daily crypto needs. 

- JJ

Disclaimer: I hold all 3 coins. None of this is trading advice. Do your homework first before making any investment. Cryptos are highly speculative and volatile and I don't want any of you coming after me. 

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Julian Jung