Charlie Lee tweetstorm explains Litecoin's value proposition


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The crucial point could be that, despite a small rational economic value, the big PR is a tangible force.

"Recently there has been a concerted effort to suppress Litecoin's price from the people / funds that are yielding LTC and from groups that see Litecoin as a hreat." I will clarify this FUD and show why Litecoin has a huge value, "said the founder of Litecoin Charlie Lee, introducing a relatively concise wave of 10 parts on Twitter.

The move comes after Lee found himself in his hair for completely undressing his LTC holdings, even after selling most of his Litecoin properties at the highest levels, it was an unusual move for the crypto standards, in which project owners love to show to followers who have some skin in the game. The followers of Litecoin could be a testimony of his Twitter charisma, if nothing else.

The tweetstorm presents a unique opportunity to examine Litecoin's value proposition directly from the mouth of pollo . Recently, there has been a concerted effort to suppress Litecoin's price from people / funds that are short-circuiting LTC and from groups that see Litecoin as a threat. I will clarify this FUD and show why Li tecoin has tremendous value.

– Charlie Lee [LTC⚡] (@SatoshiLite) 20 September 2018

Points and counterpoints

  • "FUD: Litecoin has lost its margin and can not be differentiated from hundreds of other altcoins." [19659010] "TRUTH & # 39 ;: Litecoin has one of the safest networks on all plateaus, Litecoin has over $ 150MM of ASIC hardware that protects it … Litecoin dominates Scrypt mining by far …. Miners have no incentives to attack the network because they will destroy the value of their ASIC hardware. Litecoin has a lot of liquidity, which is important for people getting in and out of LTC.It's pretty much about every fiat and crypto exchange (soon Gemini), even more than ; ETH. "

Well and true, but all these points are just Litecoin which recites the same identical value proposition of bitcoin. Unless you have a strange personal preference for coins with Scrypt instead of SHA-256, this is just another way of saying buy bitcoins rather than Litecoin.

Litecoin needs a value proposition that goes beyond the simple "bitcoin".

As Lee says, it is not correct to say that Litecoin can not differentiate itself from other alternative circuits, but a much more pressing problem for Litecoin is to distinguish itself from bitcoin with more than just commissions.

"Litecoin is supported by more than 9 payment processors: Aliant Payment, BTCPay, Coinbase, CoinGate, CoinPayments, Globee, GoCoin LTCPay and TravelbyBit.This makes it extremely easy for traders to accept LTC.There are too many LTC traders to count ! "

But again, these advantages continue to place Litecoin as a worse version of bitcoin: if you want more payment processors, more hashing power or a more reliable and proven bitcoin network.

In addition, payment options are a way for people to have holdings of Litecoin, delivering LTC to traders who then immediately proceed to convert to fiat. Every new payment processor is a new way of pushing Litecoin prices down. It is also a rather irrelevant value proposition: merchants who accept Litecoin will also accept the fiat, and people will not buy cryptocurrency for the opportunity to buy a cup of coffee with it, they do it mainly because they hope it will increase in value [19659005] Almost every reason to buy Litecoin is an even better reason to buy bitcoins, the only exception being Litecoin's transaction fees and cheaper transactions.

  • "FUD: Litecoin is no longer needed now that Bitcoin can scale with LN [1 9659011]" TRUTH: Many LN clients and apps also support LTC because they see the value of Litecoin. With atomic swaps, LTC interacts with BTC on the Lightning network. "

" Litecoin will always be the cheapest and fastest on the ramp to the Lightning network. And with solutions like submarine swaps, you can use on the LTC chain to pay a flash BTC bill! We will also have decentralized exchanges using atomic swaps. The possibilities are endless. "

The Lightning Network is about to bring down the transaction costs of bitcoin, Litecoin and other currencies considerably Think of a high-speed highway where coins can move much more quickly and economically – the point where coins are moved on or off the Lightning network, which involved the payment of the entire transaction fee.The atomic swaps are a way to smoothly convert the coins.

Lee's vision is that once it is easier to exchange bitcoins and Litecoin, people I prefer to use Litecoin as a cheaper way to get on and off the Lightning network Objectively, Litecoin will continue to be cheaper and faster.

However, it still poses some questions.

First, means the future value of Litecoin is extremely dependent on the success of the launch of the Lightning network, which does not guarantee the expected operation within a reasonable of time.

Secondly, there may be little reason to believe that people will prefer or use Litecoin once the Lightning Network has ended. It is hard to say which way it will go, but from a corner it seems more likely that this will further strengthen the superiority of bitcoin, rather than strengthening Litecoin.

For practical purposes, the Lightning network bridges the gap between bitcoin and Litecoin. So far, people who purchase Litecoin do so on the expectation that reduced fares and transfer times are more likely to be related to their future value. But so far, it is obvious that more people simply prefer bitcoins, higher taxes and everything.

It is not clear why the Lightning network would necessarily change this dynamic, rather than giving people another reason to limit themselves to bitcoins.

the same assumptions that dictate that Litecoin will take off on the Lightning network also impose that Litecoin must already take off with respect to bitcoin. But this is not the case. Regardless of tariffs and transfer times, bitcoin is simply the most popular choice, it currently handles about 10 times the number of Litecoin transactions per day.

The Lightning network will bring obvious benefits to Litecoin compared to bitcoin. But on the basis of the previous story it seems even more probable that it is the ruin of Litecoin than its savior.

  • "FUD: Litecoin as Bitcoin testnet is not worth $ 3B."
  • "TRUTH: Even if the only use case of Litecoin is a testnet It is not possible to give an absolute value to this, it is necessary to look at it in relation to Bitcoin.The Litecoin marketcap is only 3 % of the Bitcoin marketcap, which is not very big! "

 juicy cryptographic words

3% of the bitcoin market capitalization is huge. Huge enough, in fact, to put Litecoin as the seventh highest currency in the market.

Litecoin had a tendency to become the silver of bitcoin gold, to attract buyers with the idea that its price is somehow naturally related to bitcoin. But reality does not really care about marketing maneuvers. Lee's point that 3% of bitcoin market capitalization is too low for Litecoin is based on a potentially false premise.

  • "FUD: Litecoin has no development in the last 6 months."
  • "TRUTH: We do not work on the main branch, where people look. This is generally a good practice Git! Demonstration: we released 0.16.2 last week and just released 0.16.3 today, which solved the recent bug critic of the DoS. "

True, that. [19659019] "FUD: Charlie left Litecoin and he does not care anymore."

  • "TRUTH: I am working full time in Litecoin and I focused on the use of Litecoin Demonstration: The fact that he spent time writing these 11 tweets! Litecoin also has the strongest cryptic community. # LitecoinFam "
  • A community of cryptocurrencies is a valuable resource, and Litecoin is sufficient for some experts to evaluate Litecoin as a likely candidate for future price growth. Furthermore, cryptocurrency markets are often more emotionally than rationed ones. The "bitcoin silver" brand of Litecoin is an advantage that may interest some buyers, especially new and inexperienced cryptography fans who are looking for something that is "like bitcoin but better" and with a much lower price, and its passionate community could help to promote it

    Lee's breakdown of Litecoin's value proposition may not inspire much confidence in those seeking a rational reason to expect future growth, but it is undoubtedly a great example of community and PR management, which has always been one of Litecoin's strengths.

    Disclosure: At the time of writing the author there are ETH, IOTA, ICX, VET, XLM, BTC, ADA

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