The cryptic fund Multicoin Capital has published an in-depth analysis of why it believes that the arguments in favor of the movements of the bull market of Litecoin are weak and do not stand the test.
The paper began by revealing that the company is shortly Litecoin and has declared "Litecoin is a relic of the cryptographic ecosystem with a pre-smart contract platform" and is in decline. The document listed many reasons that included market maturation, negative catalysts such as Segwit and Lightning Network, reducing the need for Litecoin, the lack of funding for the Litecoin Foundation and the disinvestment of Charlie Lee from Litecoin. The document then goes on to discuss these and other attributes in more detail and diminishes the common arguments used to support Litecoin due to inaccuracies or insufficient evidence.
The article also drew attention to the original Litecoin foundation as "an altcoin optimized for CPU mining" since "advances in GPU mining have made the mining BTC with CPU not profitable ". Charlie Lee saw this as a "departure from equity and decentralization" and motivated the changes to create Litecoin. However, the paper added that today the "initial vision of fairness and decentralization of Charlie through the barriers to mining entry has become obsolete" due to improvements in the GPU extraction for Litecoin and Bitmain which releases ASIC Litecoin .
One theme on all paper was the lack of consumer demand behind Litecoin and the way in which Litecoin's structural developments are not doing much to support that consumer demand. The document touched The Litecoin Foundation and their ability to remain financed as they only have $ 322.003.51 USD in funds, of which 81.65% in Litecoin and only 1.2% in cash. The author discussed how this hinders their long-term growth strategy and thus also weakens consumer confidence. The paper also discussed the sale pressure of Litecoin miners as they extract 14,400 new LTCs each day and miners often need a fiat to cover maintenance and electricity costs.
The article also denied the common thesis that Litecoin is "the silver for Bitcoin gold" since Bitcoin is now considered a valuable store, while Litecoin is more oriented towards a means of exchange. The author stressed that the analogy of precious metals concerns the "value of the relationship between silver and gold based on the idea of the price / weight ratio" and the fact that "the lower price / weight ratio makes payments for cheaper purchases". However, the author clarified that "digital goods have no weight and therefore it is not possible to do the same analysis". Furthermore, the increase in the adoption of Bitcoin Segwit and the Lightning network is intended to make transactions more accessible, which makes Litecoin argue "silver" as an obsolete medium of exchange.
The document then went on to discuss "a founder who sells their entire properties is a massive red flag" and that "despite its intentions, there is now a misalignment of incentives that diminishes its motivation to continue development and to add value to the protocol ". The author would have preferred Charlie to "close his holdings in good time or use them to fund further LTC developments".
These concerns, among other things, are those that the paper uses as evidence to suggest that Litecoin has a disturbing future since it does not differ from other coins like Bitcoin which now does most of what Litecoin does, but better. Then other cryptocurrencies, like Dash, provide even more solutions to the problems reported in the document.
Dash offers solutions in which others fail
In contrast, Dash is able to finance its development through the DAO Treasury, a 10% share of the Dash mining awards each month, compared to The Litecoin Foundation which funds funds on donations and mining prizes. The Dash Core Group, responsible for most of the Dash code and involvement development, was able to submit proposals to the DAO Treasury and receive approval of the funding through the voting mechanism. In addition, many other Dash projects have been able to receive funding from Treasury, DashBoost or DashDonates. So the next Dash Ventures provides a potentially unlimited source of funding as it will act as a VC fund investing in projects and ensuring returns to the Dash network. Because of this financial success, Dash has been able to achieve adoption in the real world, over 3,000 traders worldwide and countless cases of use, which create pressure on Dash for counteract the sales pressure of the miners. Dash also has a system of Masternodes, which receive returns on the 1000 Dash they represent to protect the network and decide which proposals to finance through the Treasury. This system further encourages the detention of Dash, in contrast to the sales incentives seen with Litecoin.
Further expansion on the use of the real world of Dash, Dash has achieved real, everyday, real-world usability, which makes the whole "Bitcoin digital gold &" # 39; and the argument & # 39; Litecoin is digital silver & # 39; it is a point of silence. Dash is Digital Cash that allows consumers to make economic remittances or make a myriad of purchases from online gift card providers, street vendors, restaurants gas stations, travel reservations, science fiction games and much more. The use of Dash is in stark contrast to Litecoin, which the analysis highlighted does not have significant adoption by traders except through POS systems that integrate large areas of cryptocurrencies at a time. Dash also distinguishes its usability from Bitcoin Lightning Network as the LN is intended to solve transaction costs and Bitcoin confirmation times, but currently lacks chain liquidity, while Dash already offers low rates and extremely fast confirmations to all users of Dash.  In addition, Dash sends consumers a stronger sign of confidence than Litecoin and Charlie Lee since Dash's founder Evan Duffield turned off his masternodes and moved away from the Dash Core Group, but he dedicated his funds and time at Dash Labs in the pursuit of making Dash "future-proof". All these features allow Dash to provide consumers with better and better services to have a decentralized, economic, peer-to-peer, cheap, fast and reliable digital currency that makes Dash stand out in the crowded cryptocurrency space.