What is the problem with Litecoin?

Litecoin, a popular cryptocurrency, faces potential challenges in maintaining its position as a viable alternative to Bitcoin. One significant weakness lies in the eventual resolution of Bitcoin's scaling issues.

Should Bitcoin successfully address its scalability concerns, Litecoin's key selling point as a faster and more affordable option may diminish. This could lead to a decline in Litecoin's appeal and, consequently, its value proposition.

Another threat to Litecoin's dominance comes from the proliferation of stablecoin projects. These digital assets aim to provide a stable and predictable store of value, directly competing with Litecoin's use case as a reliable medium of exchange.

As the stablecoin market continues to grow, it may erode the demand for Litecoin as a means of transaction, especially among those seeking stability and predictability in their investments.

Moreover, Litecoin suffers from a higher degree of wealth centralization compared to Bitcoin or Bitcoin Cash. This concentration of wealth in the hands of a few could limit the cryptocurrency's potential for widespread adoption and decentralization.