The Flappening: Litecoin Overcokes Bitcoin Cash

December 15, 2018 Others

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From the emergence of Bitcoin Cash on August 1, 2017, there was a continuing rivalry between the big block version of Bitcoin and the already established digital silver, Litecoin. In many ways, the two coins are very similar: they have larger blocks than Bitcoin, have a Keynesian perspective of purpose and utility and allow instant confirmations for the convenience of commercial use.

Therefore, it makes great sense to see the two competing projects for their merchant-friendly market segment. Although BCH has had a significant advantage in terms of market capital and branding due to the significant resources of Bitmain, Bitcom.com and big block supporters, Litecoin supporters have been asking "The Flappening" for a long time.

Since Charlie Lee is often nicknamed "Chikun", a chicken flap, and an important overtaking of the market is called "exaggeration" (as the expectation that Ethereum becomes more precious than Bitcoin), it makes sense to refer to Litecoin wins on Bitcoin Cash as "the flapping". The term became so popular that Satoshi Lite himself tweeted it on February 25, 2018 to make a bold prediction: the ETH flippening will not happen, but LTC will become more valuable by the end of the year.

Charlie Lee is known for making many accurate predictions when it comes to the cryptocurrency market, and he defined the end of the phenomenal run of 2017 with an extraordinarily accurate price estimate for Litecoin (he predicted the fall to $ 20). Well, this time it's about the way it was manifested and how it was actually done two weeks before the end of the year. So on December 15, 2018, Mr. Lee tweeted his victory with that kind of bravado that we had not seen for a while.

Look at Flappening

Litecoin fans took the prediction of their winged leader very seriously and went so far as to create Flappening.watch: a website that analyzes all the metrics with which LTC must overcome BTC. The criteria are the market capital, the price, the number of active addresses, the number of daily transactions, the daily trading value, the daily mining premium and the average block time.

With some metrics, Litecoin had always been ahead of Bitcoin Cash: it managed more transactions and higher volumes, constantly discovering new blocks 4 times faster (which is a feature of the design). In this regard, LTC has never lost its supremacy for the most liquid and convenient currency for transactions and payments (although the repeated blockade of BCH has lowered rates in favor of Roger Ver's Bitcoin version).

However, the most important benchmark that interests the eyes of most is market capital – and consequently the ranking on CoinMarketCap.com.

In this regard, it seems that the hash wars, the rift and all the internal struggles of the Bitcoin Cash community have really brought down the price to the point where Litecoin did not even have to be pumped: it simply maintained its best value during this market cycle.

Bitcoin trader and member of Magical Crypto Friends Whale Panda was among the first influencers of cryptography to testify the phenomenon and write on Twitter.

Litecoin vs Bitcoin Cash: similarities and differences

As stated earlier, Litecoin and Bitcoin Cash have the same purpose of providing a fast and liquid form of digital currency, whose value reserve performs a secondary function. Both coins cover lower fees and commissions, faster confirmation times, while also providing a layer of security that maintains the qualities of the early years of Bitcoin. Functions such as zero confirmation help traders save time, while the smallest amount of decentralization enables rapid improvements.

Despite these philosophical and technical similarities, Litecoin and Bitcoin Cash have different fundamentals and are marketed in an antithetic way. For example, Litecoin is considered the help Bitcoin needs, both financially and technically. In 2017, Charlie Lee negotiated with the miners to enable SegWit and demonstrate its capabilities before the more conservative Bitcoin community adopted the correction of block malleability. More recently, the creator of Litecoin is also planning to experiment with opt-in reserved transactions, as mentioned in episode 13 of Magical Crypto Friends. Some people call Litecoin as a "testnet" for Bitcoin, even if its liquidity and security for chain transactions also brings value.

Conversely, Bitcoin Cash does not present itself as a complementary version of Bitcoin; claims to be the original bitcoin presented in the white paper. The division of the community has also led to a situation where Bitcoin.com, the r / BTC Reddit thread and many other hubs called Bitcoin actually support Bitcoin Cash, and the whole marketing campaign has sought a state of confusion and ambiguity of the brand.

Technically speaking, BCH is closer to BTC and has only a few changes to facilitate commercial use. The fact that the division has been 9 years in the life of Bitcoin also means that the fundamentals are shared. On the other hand, Litecoin is a fork of the Bitcoin genesis block and was executed independently and separately from day one. It has four times the size of the block and the maximum coin supply, uses a different Proof of Work mining algorithm to avoid the canibalization of Bitcoin mining and generates blocks four times faster.

Having a community that has been built over 7 years of existence and grow organically from nothing to a serious competitor to constantly escape the "shitcoin" label definitely helps the project. And the fact that all currencies have been extracted through an energy-intensive process PoW also means that holders are more likely not to empty their currencies during difficult times (unlike most Bitcoin Cash advocates, who have their free coins on 1 to 1 parity according to the BTC they held).

Litecoin that surpasses Bitcoin Cash (The Flappening) makes sense

Although sometimes Bitcoin Cash poses a serious threat to the status quo of BTC and its propaganda has constantly dismissed updates like SegWit, Schnorr and the Lightning network, it has failed to meet its expectations. The fact that it has been used in commerce is largely due to Roger Ver's connection with BitPay (whose creation was co-funded by the Bitcoin evangelist), and its mining efficiency was supported by Jihan Wu's involvement with Bitmain . These advantages were fragile in front of the greedy vultures who did not see the time to divide the community and bring down the price, and perhaps none of this would have happened (at least not so soon) if it had not been for the time being. influence of Craig S. Wright.

Litecoin recorded steady growth that allowed the project and the community to take every step towards legitimizing the market. Being listed in exchanges, maintaining good relations with Bitcoin developers, keeping low rates to compete with Bitcoin Cash and offering faster transaction confirmations are all clear advantages that compromise commercial friendship and blockchain soundness. Furthermore, building a reputation based on long-standing efforts and not trying to win a consolidated brand is always a long-term strategy. In this case, it just happened to show its results much faster than expected, just to consolidate Charlie Lee's mysterious ability to make accurate predictions.

Is this the end of Bitcoin Cash? Surely not. But this is a serious blow that the project has accomplished in terms of becoming a legitimate means of exchange and reserve of value. Having lower daily trading volumes is already an indicator that members of your community are not SPEDN, but HODL. But when the HODL paradigm stops, you may want to reconsider your position and your approach.

Oh, and let's not forget the bet between Charlie Lee and Roger Ver. It took place a couple of months ago, but "Bitcoin Jesus" will have to reconsider his clothes.

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