Litecoin (LTC) is the 6th largest cryptocurrency by market capitalization. In crypto circles, it is often seen as the coin that best offers an alternative to Bitcoin (BTC). As such, as far as BTC’s shortcomings are concerned, it’s one coin that could potentially fit the bill of a replacement. Debate abounds as to whether that’s still the case with so many coins now touting similar qualities.
Amazon (AMZN) is an online global retail giant with a robust business ecosystem. In terms of what it can bring to the table, one need only look at its vast network. We’ll look at that shortly.
The big question right now regards chances of a rumored partnership happening. Who, between the two, would benefit most from it? Is it the flailing Litecoin, or the sprawling Amazon?
Litecoin’s prices have fallen to new lows, going way back to levels seen last in December 2017. The coin slid into free fall territory following last weekend’s price crashes. It now trades at $96.34, which is 3.45% down on its value in the last 24 hours. The current price represents declines of about 75% since it reached an all-time high price of $379 on December 19, 2017.
What’s more worrying to the LTC community and investors is that things can still get worse. Going below $90 would open up room for further decline and make any recovery efforts the more daunting.
Does Litecoin need Amazon?
Litecoin, in its present state, could be said to be the one likely to be in greatest need of Amazon. Any hint of it happening would be a trigger for exponential price growth due to high expectations. And that would prepare it for further growth, especially if it has to recover from the current price massacre.
As far as cryptocurrencies are concerned, one factor is seen as being paramount to future adoption: partnerships. To that end, LTC has been active, partnering a plethora of companies, merchant sites and vendors around the world.
Its initiative of driving adoption by asking its community to spearhead acceptability as a payment method seems to be paying off. However, the crypto lacks that killer partnership- that one global brand that would make its traction relentless. And that’s something that Amazon would provide.
Litecoin has advantages, mainly its scalability, security, and cheaper faster transactions compared to the more recognized Bitcoin. It would suit the e-commerce giant’s checklist for a cryptocurrency partner. Litecoin would also be a great coin for Amazon due to the marketplace’s emphasis on user experience. So the above advantages make LTC cater for consumer metrics like speed, cost, and security.
What Amazon brings
In November 2017, Amazon registered a number of cryptocurrency-related domain names. At the time, speculation was that the company was in the process of delving into crypto coins. The possibility is still there, and a company with Amazon’s pedigree as well as resources could easily launch their own crypto asset. However, it appears more like the company may be in the process of developing crypto exchanges.
It hasn’t happened yet, and there remains the feeling that Amazon may opt to leverage one of the cryptos, even though its own Amazon coin exists. What would Litecoin get if it partnered Amazon?
For starters, the online behemoth has over 300 million customer accounts from users all over the world. To put it in other words, its reach is almost equal to the size of the US population. What would LTC do with exposure to about 300 million users? Its value would explode, but more importantly, it would provide a path to global adoption no other partnership can achieve.
Another aspect is the sheer volume of sales that are completed on the Amazon platform. With over 100,000 sellers on its numerous platforms, the site records millions of sales in items every other day. Again, this provides exposure to thousands of possible points of adoption, with millions of transactions.
Amazon may need to partner a cryptocurrency to leverage the pros blockchain delivers. It could as well be that the company will gain more. However, contrasting the two at the moment, one can see that Litecoin will be the biggest beneficiary should a partnership be mooted.