Litecoin

MONDAY 25TH NOVEMBER 2013

Manchester, UK-based Alpha Technology has announced it will start developing the first purpose-built ASIC mining hardware for litecoin, signing a partnership deal with Indian designer and manufacturer Dexcel Designs

Mohammed Akram, CEO of Alpha Technology a former miner himself, noticed litecoin was a few points more profitable than bitcoin using the older GPUs. “What most miners care about is ROI and profit. Since we expect to be the earliest to market and distribute, miners will probably feel more confident purchasing our miner simply because their isn’t a huge arms race yet in litecoin ASIC, so they can be confident that until their miners arrive their won’t be a influx of hash rate from specialized hardware, so ROI is more easily predictable.”

Akram believes litecoin will become a more popular alternative to bitcoin as bitcoin becomes more valuable, referring to the (controversial) view that litecoin can be the silver to bitcoin’s gold. – Jon Southurst

 

MONDAY 2ND DECEMBER 2013

Litecoin is not interesting to me. It offers no significant benefit over Bitcoin whatsoever. It has a little value purely as a backup blockchain in case some critical flaw destroys Bitcoin’s blockchain (assuming the same flaw doesn’t affect LTC). Other then that, why should anyone care about it?

Litecoin, and the other alts, are 99.9999% speculation. Speculating on altcoins, in general, is pure greater fool theory in action, because there is no significant fundamental utility, no “improvement delta” over Bitcoin itself. People are going to get burned with them, and it’s unfortunate because Bitcoin is seeing returns of 10,000% per year and apparently that’s just not enough for some people =)

Don’t let speculative experiments at the margin distract from the most mind-blowingly awesome monetary system mankind has ever seen – Erik Voorhees

 

MONDAY 2ND DECEMBER 2013

“Waiting for the 2.5 min LTC block is only 1/4th as secure.” – Erik Voorhees

That’s actually false. There’s a long math-heavy explanation about this in Bitcoin Magazine (issue 13 I believe); essentially, if you try to actually calculate how secure N confirmations are against an attacker with X% mining power, the chance of success can be calculated to be (X / (1-X))N – the block interval shows up nowhere in the calculation. Hence, six 10-minute confirmations and six 1-minute confirmations provide essentially the same level of security

One of the major use cases of Primecoin (1 minute block time) is actually that it lets you move money between exchanges for arbitrage very quickly, as exchanges wait for 6 confirmations for security. Also, many websites (eg. SatoshiDice) wait for 1 confirmation before acknowledging a payment, so Primecoin and Litecoin win out somewhat there.

All in all, I think altcoins are fine at the relative price level they have toward BTC – Vitalik Buterin

 

MONDAY 2ND DECEMBER 2013

Most interesting aspect of LTC is scrypt. TBD whether PoW on SHA256 leads to too much concentration – Andreas Antonopoulous

 

MONDAY 6TH JANUARY 2014

Litecoin Leads Bitcoin in Dramatic Price Move

A massive leap in LTC / USD was followed shortly thereafter by a similar climb in XBT / USD. For litecoin to so visibly and dramatically lead trading is relatively unprecedented and largely unexpected.

Despite having a lower overall USD-equivalent capitalization, trading volume in litecoin actually exceeded that of bitcoin on BTC-e, the leading exchange on which they’re both traded. In particular, LTC volume was consistently greater during the period of dramatic price volatility, further adding to the notion that litecoin activity actually drove bitcoin prices.

Bitcoin maintains a total cumulative market size some 15x larger than litecoin – The Genesis Block

 

Monday 27th January 2014

Bitcoin and Litecoin Top Sources of WikiLeaks Donations. A lot of people want to see #WikiLeaks accept #Dogecoin donations https://twitter.com/search?q=wikileaks%20dogecoin

Wikileaks

 

TUESDAY 8TH APRIL 2014

Litecoin

Benz and Beamer auto dealership today announced it sold a Tesla Model SP85 to an anonymous customer for 5,447 litecoin, an equivalent of $90,000 at the time of purchase. – Amanda Coolong

 

Tuesday 27th May 2014

GENUINE BUT GENERALLY USELESS COINS.

Litecoin

The fact that I included Litecoin shows how much I had to scrape the bottom of the barrel to find another coin that’s not simply an outright scam.

It’s been around for 3 years. There’s nothing particularly useful about it, and it offers no improvement over bitcoin but at least it’s not a pump and dump scam that the instaminers are going to offload imminently and destroy your holdings. – Lee Banfield

 

MONDAY 23RD JUNE 2014

The Dominant Anonymous Coin

My thesis is that LTC slowly bleeds market-cap to whatever the dominant anon-coin ends up being over the course of 1-3yrs – Dan McArdle

 

TUESDAY 1ST JULY 2014

Litecoin

Litecoin price appears to be decoupling from bitcoin. Money rotating out of Litecoin to bitcoin and other alts? – Barry Silbert

Fallacy of “asic-resistance” now obv, plus new crop of anon coins has ppl asking why clone/tweak like LTC has value. #finally – Dan McArdle

 

Monday 14th July 2014

Litecoin

Bitcoin market cap 35x larger than litecoin, up from 18x two months ago – Coindesk

 

Monday 3rd November 2014

Shopify’s 120,000 Merchants Can now Accept Payments in Litecoin and Dogecoin

“We’re always looking for new technologies that will help our merchants run their businesses and increase sales,” Shopify’s Louis Kearns, Product Director for Integrations, said in the release. “The partnership with GoCoin provides anyone on our platform with the option to accept multiple cryptocurrencies.”

Shopify has allowed Bitcoin payments for nearly a year, but GoCoin’s integration gives merchants flexibility with different cryptocurrency payment option – Armand Tanzarian

 

Thursday 1st January 2015

Peak Altcoin Hype

“Don’t let speculative experiments at the margin distract from the most mind-blowingly awesome monetary system mankind has ever seen – Bitcoin proper” – Erik Voorhees, 2013

In 2013 a common line of thinking was that bitcoin’s value would be diluted by copy and paste altcoins (despite obvious evidence to the contrary, Peter Schiff and Warren Buffett still continue to make this claim).

2014 saw hundreds of scam coins and worthless copies come along (Dogecoin and Auroracoin are particularly memorable examples). None have come close to challenging bitcoin as a serious transactional currency with a meaningful network effect.

Litecoin was the 2nd largest digital currency in the world a year ago. Some people even speculated it would grow into a mainstream currency “the silver to bitcoin’s gold” but instead it has weakened and fizzled out. Bitcoin’s market cap is now 45x larger than Litecoin’s, up from just 18x seven months ago. – Lee Banfield

 

Sunday 22nd February 2015

Litecoin

Bitcoin Blockchain is secured by 335,000,000 GH/s of computing power vs Litecoin Blockchain by only 1,125 Gh/s thats circa 300,000X !!! – George Kikvadze

 

Wednesday 18th March 2015

Shapeshift Currency Exchange

ShapeShift’s exchange volume has been growing by 30% per month for the past six months. There is no easier or safer way to trade Bitcoin with Litecoin, Darkcoin, Ripple, NXT, Bitshares, and other leading digital assets.

There is no signup process whatsoever. You can now move between digital assets with the grace and elegance that only cryptocurrency permits – Emily, Shapeshift

 

Wednesday 6th May 2015

Buy on Amazon at Discounted Prices: Purse.io Integrates ShapeShift

Spend Tether, Dash, Litecoin, XRP, Monero, CounterParty, NXT & more at Amazon – Erik Voorhees

Supports the following countries: UK, Canada, Germany, Japan, China, France, Italy, Spain, India –ShapeShift.io

 

Saturday 2nd July 2016

Then and Now: The Big 4 Cryptocurrencies

May 27th 2014

1, Bitcoin

2, Ripple

3, Litecoin

4, Peercoin

 

July 1st 2016

1, Bitcoin

2, Ethereum

3, Ripple

4, Litecoin

—————–

The top 4 positions have remained quite stable. The only changes are that new entrant Ethereum has burst on the scene with a massive $1 billion market cap and Peercoin has collapsed.

Litecoin and Ripple have retained their top 4 positions. To have that kind of stability over 2 years is a good accomplishment in such a fast changing turbulent market.

 

2 – NOTABLE CURRENCY COINS

Litecoin

May 27th 2014: Market Cap = $315.5 mill

July 1st 2016: Market Cap = $194.6 mill

-38%

Lindy Effect

Litecoin was released in October 2011 and was launched fairly, no premine.

It seems to have nothing really going for it, no merchants, no excitement, but somehow it’s stuck around since 2011.

Litecoin has been in the game for a long time and has had a big market cap for much of its existence. Every day that litecoin survives and functions as it’s supposed to is a good day for its reputation.

 

Litecoin as a Backup Blockchain

Ideally we’d have 1 currency (to maximize the network effect) but the market might desire a level of comfort by having 2 decent sized crypto currencies (2 completely separate, well tested blockchains).

 

Merchant Adoption / General Enthusiasm

Merchant adoption hasn’t really picked up.

Purse.io integrates shapeshift so you can spend litecoin at Amazon, but there’s very little direct merchant adoption or enthusiasm about accepting it.

 

Overall

Litecoin has failed to keep out ASICS (which are now the primary method for mining). This was a misguided policy anyway so it doesn’t hurt the currency today.

In Jan 2014 bitcoin was 15x bigger than litecoin by market cap. Now it’s 55x bigger so litecoin is historically cheap. High bitcoin to litecoin multiples may be a good buying opportunity for litecoin.

Litecoin is a functioning blockchain which doesn’t suffer from catastrophic security failures or double spend incidents. It has some sort of network effect, as small as it is, and brand recognition. It’s a tradable liquid asset and the market cap has been high for years so it’s not a newcomer.

Importantly, it has a limited supply like bitcoin, so eventually the inflation rate will be zero.

 

The Dominant Anonymous Coin

Litecoin may be minimally useful as a backup blockchain, but it would make more sense for the number 2 digital currency in the world to be an anonymous coin.

A strong, dominant anonymous coin taking the number 2 spot with litecoin 3rd would seem like a sane world.

Privacy improvements in digital currencies are needed and although I’d prefer it to see it happen in bitcoin, I don’t mind seeing separate currencies working on it too.

Spending bitcoin through mixers is still the most popular way to pay for products on dark markets, but altcoins are accepted on some sites.

At the moment Dash is the most dominant anonymous coin by market cap, and Monero is the most technically advanced.

After years of hype, the anonymous coin Zcash (formerly Zerocoin and Zerocash) is scheduled to be launched on 26th September 2016 (although they have missed all of their previous milestone so further delays wouldn’t be surprising).

 

CONCLUSION FOR CURRENCY COINS

Disqualified Coins:

Dash

Bytecoin

DigitalNote

 

Legitimate Coins:

Litecoin

Monero

 

CONCLUSION: SUGGESTED PORTFOLIO ALLOCATION

A) Digital Currency Fund

Bitcoin 99%

Monero 1%

——————-

It really is all about Bitcoin. It’s just phenomenal compared to the alternatives. The opportunity cost of investing in something else is so high.

Monero is a worthy small addition as the most advanced privacy altcoin. Also, look to add a very small amount of Litecoin (smaller than Monero) when the price is historically low.

 

B) Digital Assets / Platform Fund

Counterparty 100%

——————————

This fund is completely separate to the main digital currency fund (and should be much smaller). It’s incredibly speculative and is more like a stock trading account.

 

Altcoin Buying Opportunities

  • Buy at 6 Month Lows
  • Buy at 90% Fall from Previous or All-time high
  • Buy When Bitcoin Dominance Index Strengthens to over 90%

Lee Banfield, July 2016 Report: The Most Legitimate Altcoins

 

 

Thursday 18th August 2016

Which Altcoins Might be Worth a Punt in the Long Term?

Litecoin’s best quality is that it doesn’t add features over Bitcoin.

Any extra feature is pointless for a currency & will kill it.

A big problem is attracting enough processing power to be secure. But it’s got a better chance than other coins. – Saifedean Ammous

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