On an earnings conference call that took place Thursday, the Chief Executive Officer of Starbucks hinted that the global coffee chain giant is considering accepting cryptocurrency payments at its brick-and-mortar store. While that was pretty subtle, he was very direct in saying that Bitcoin (BTC) wasn’t “going to be a currency today or in the future.” With BTC out of the picture, we have a few solid reasons that lead us to believe Litecoin (LTC) is a serious contender.
Why Litecoin could come out on top:
Mr. Schultz clearly isn’t on board with Bitcoin (BTC), but he did say: “I personally believe that there is going to be one or a few legitimate, trusted digital currencies off of the blockchain technology.”
The CEO also said that he believes “we are heading into a new age, in which blockchain technology is going to provide a significant level of a digital currency that is going to have a consumer application.”
He added that these trusted coins will need to be “legitimatized by a brand in a brick-and-mortar environment, where the consumer has trust and confidence in the company that is providing the transaction.” I think a lot of people can read between the lines here: a trustworthy cryptocurrency is on its way to Starbucks, but it’s not Bitcoin (BTC).
So that leaves us with a number of altcoin options, including Ripple (XRP), Ethereum (ETH) or maybe even an up-and-comer like RaiBlocks (XRB).
But we believe that Litecoin (LTC) has a slight edge over all these options in the short-term.
Because Litecoin (LTC) is More Accessible than Ripple (XRP)
It may have slipped to being the 7th most valuable crypto coin on the market (after being surpassed by Stellar (XLM) and Cardano (ADA), but LTC remains a very established and reliable online payment option. It may have lost a pretty big chunk of its market value in the past few months, but then again so did Ripple (XRP).
This currency is one of the only four that is accessible on Coinbase, for example. That’s the world’s largest cryptocurrency trading platform, and XRP is nowhere to be found. If Starbucks wants to be able to help the masses with this payment option, a Coinbase-accepted currency would be the best place to start.
It May be Tradable for Free on Robinhood Soon too
Free stock market trading app Robinhood, that’s known for being super popular with millennials, recently announced that it will start running free cryptocurrency trades beginning next month.
Introducing Robinhood Crypto. Invest in Bitcoin and other cryptocurrencies commission-free on the Robinhood platform, 24/7. #DontSleep. Get early access https://t.co/28TamoX4rO pic.twitter.com/MiQ9xnsoaq
— Robinhood (@RobinhoodApp) January 25, 2018
We still don’t know which coins will be traded on the platform, exactly, but at least LTC is currently featured on the crypto watchlist you can make. We take that as a good sign that Litecoin (LTC) will end up on Robinhood, especially since it’s already on Coinbase.
Unfortunately, however, the founder of Litecoin is being especially desperate on Twitter in an attempt to convince Robinhood to choose his coin:
Hopefully that doesn’t turn Robinhood off too much.
LTC is Cheaper and More Scalable than Ethereum (ETH) and Bitcoin (BTC)
We are all aware of (and most of us are tired of) the prices involved with ETH and BTC transactions. Our frustration is made worse when we know that there are coins that charge muss lower transaction fees – even a lot that charge no fees.
And Ethereum and Bitcoin transactions can also move at a glacial speed – often getting clogged up and lagging beyond what is tolerable.
Litecoin (LTC), on the other hand, is four times faster than Bitcoin (BTC). On top of that, the median Bitcoin transaction fee is $3.45, while LTC transaction fees are just a couple pennies.
Why on Earth would Starbucks go with Bitcoin?
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.