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ANALYSISKnowYourCrypto #14 - September 14, 2021: Litecoin (LTC)OC (self.CryptoCurrency)

submitted by madpanda94Banned

If you are interested to the previous posts of this series, check it out here:

What is it?

Litecoin (LTC) was born in 2011. It is a P2P (peer-to-peer) cryptocurrency that is based on an open source system which shuns the control of any central authority. This is a characteristic of independence that unites all cryptocurrencies in circulation. To date Litecoin is the fifth virtual currency by market capitalization and represents a real innovation compared to Bitcoin. Its technology has allowed other cryptocurrencies to see the light thanks to the use and subsequent lightening of its codebase. Despite its innovative potential, Litecoin has lost large ground due to the Ethereum boom but still continues to have some prestige in the cryptocurrency market. Although Litecoin was built and designed on the pillars of Bitcoin, the two cryptocurrencies have some differences that could lead to one or the other. What is making Litecoin better than Bitcoin, according to its creator, are the possibilities of being able to reach a greater number of virtual wallets and the higher limit (84 million against 21 million for Bitcoin). It will therefore come as no surprise to know that Litecoin mining times are four times lower than those of Bitcoin. Litecoin takes 2.5 minutes to generate a block, while Bitcoin takes at least 10: the confirmation of the operations is obviously more immediate. In addition to the total number of units and the transaction speed, a third Bitcoin-Litecoin difference can also be found in the algorithm used by cryptocurrencies. Litecoin uses Scrypt which, being a memory-hard sequential function, requires more memory. When the inventor of Litecoin was asked why to invest in Litecoin and why to prefer it over Bitcoin, Lee replied: "because it is more abundant and lighter!"

How does it work?

Like all cryptocurrencies, Litecoin is not issued by any central authority, but comes to life thanks to mining procedures. Through this activity, the so-called miners solve complex mathematical problems in exchange for cryptocurrencies. This is another of the characteristics that Litecoin has in common with Bitcoin and other virtual currencies in circulation. The incentive for miners is 50 Litecoin for each successfully verified block. Every 2.5 minutes the network generates a so-called block that is added to the others and with them composes the blockchain, the public register of all transactions in Litecoin. Recall, however, how the number of Litecoin in circulation has already been established at the time of its creation: the limit is 84 million. Litecoin is exchangeable against different currencies including not only virtual ones, but also the euro or the US dollar, just to give examples.

Where to store it?

The best hot wallets for LTC are TrustWallet and Atomic Wallet. If you want more security, a cold storage like Ledger or Trezor is the right choice.

Pros&Cons

*DISCLAIMER* These lists are subjective, it depends from person to person

Pros

  1. Litecoin has is an open source network
  2. It is decentralized
  3. It is scalable and fast
  4. Low transaction fees
  5. Litecoin has been improving regularly since it was launched

Cons

  1. Litecoin has some branding problems
  2. Litecoin has lost its credibility over time

EDIT: Thanks for the award, I really appreciate it :)

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[–]MinnesotaNice92Minnesota weather go Brrrrr 5 points6 points  (1 child)

Interesting timing haha

[–]noduhcache 4 points5 points  (0 children)

Missing here is the biggest pro of litecoin, which is infrastructure and the reason it maintains infrastructure, use and liquidity. Litecoin's recent infrastructure additions include paypal, venmo, bitpay, verifone, newegg and AMC. Interactive Brokers recently added Litecoin to offer to its users whose average account size is ~$250k vs Robinhood's ~$5k and Grayscale is eager to convert it's longstanding and popular litecoin trust into a spot etf when the sec will allow.

Newer coins like to dismiss litecoin's infrastructure as "it's old, or legacy", but that's a special kind of ignorance. Tons of old coins died because they couldn't produce liquidity, because they weren't used. Litecoin's ability to support practically all the crypto infrastructure that exists at once is the biggest more important sign of use. Anyone who's lived through even one bear market has seen tons of coins delisted for failure to support a tiny tiny bit of infrastructure. Litecoin weathered the 2014 bear market and came out a stronger network, then weathered the 2018 bear market and came out stronger network, and will thrive after the next one as well.

It is true that Litecoin's age has allowed it to build network effect gradually over time, but it is a rare survivor, many tens of thousands of coins have failed to do that over the past 10 years, and many hundreds of thousands will fail over the next 10 years and litecoin will still be there.

Extraordinary, durable and growing infrastructure should be a pro for this coin, it's far and away the biggest pro for this coin.

[–]darksideoftheeePlatinum | QC: CC 211, DOGE 33 5 points6 points  (0 children)

Ltc is great for low transaction fees

[–]Shaz170 2 points3 points  (0 children)

I actually like litecoin better after reading this. Thanks.

[–][deleted] 2 points3 points  (3 children)

Your crypto summary series is easily some of the best content on this sub. Always love reading your work.

The fake Walmart partnership has been a hard hit but I genuinely think LTC will outlive many alts around today.

Great work 👍

[–]madpanda94Banned[S] 2 points3 points  (2 children)

Thanks a lot for your kind words :) I agree with you, the Walmart site scam was a big blow for LTC, but people should always remember about the vital importance of "store of value" cryptos. Btw LTC is the silver of crypto so it can go up and down, but it's here to stay

[–]step11234 2 points3 points  (2 children)

Love your work. I feel bad for the dev team over the walmart thing but your point #2 on cons is so true. It's only still around because of it's "legacy" now imo.

[–]madpanda94Banned[S] 2 points3 points  (0 children)

Sadly Walmart scam site was a blow for LTC. But I still think its role of store of value is important for this type of market

[–]BirdSetFree 2 points3 points  (0 children)

Hopefully someone sees the potential in it and decides to use it. Would be good for all crypto

[–]madpanda94Banned[S] 1 point2 points  (3 children)

sorry for the 1h delay

[–]cacazunPlatinum | QC: CC 80 1 point2 points  (2 children)

All good

[–]rorowhat 1 point2 points  (1 child)

Did you pay him to post?

[–]BlindWillieTTin | SHIB 21 | Superstonk 164 1 point2 points  (0 children)

Good eye

[–]MrMcBertPlatinum | QC: CC 161 1 point2 points  (0 children)

Thanks for the summaty

[–]Captainwelfare2Platinum | QC: CC 846 | PoliticalHumor 84 1 point2 points  (0 children)

Nice work OP. I’ll check out your other write ups as well!

[–]scott4kevinTin | CC critic 1 point2 points  (0 children)

I used to hold LTC

[–]ShovelheaddadPlatinum | QC: CC 164, ETH 72 | SHIB 8 | TraderSubs 72 1 point2 points  (2 children)

I would like to see you cover AMP. Especially now with being an integral part of the El Salvador rollout as well as partnering with Banco Agricola for remittances. And will surely play a part in these other countries especially with how much they follow and are compliant with regulations

[–]madpanda94Banned[S] 1 point2 points  (1 child)

My plan was to make a research for every coin in top 20 and then ask you what coin would you like to see her. I'll surely do AMP :)

[–]ShovelheaddadPlatinum | QC: CC 164, ETH 72 | SHIB 8 | TraderSubs 72 1 point2 points  (0 children)

Thank you. Upvotes for you sir!!

[–]diggipiggiThe Real Nigerian Prince 1 point2 points  (2 children)

Ltc reputation has suffered after Walmart fiasco

[–]rorowhat 0 points1 point  (1 child)

Did you forget Charlie's sold all his stack as well? LTC is a gonner

[–][deleted] 0 points1 point  (0 children)

It's a shame you can't see past the FUD.

Charlie selling his fairly mined Litecoin was completely and utterly up to him. If he had kept them, then all the FUD would have been around "Charlie just wants to pump his bags to rug pull". By having no "satoshi stash", the coin is truly decentralised from it's creator.

It also means institutions are going to be more likely to invest in Litecoin as they do not need to worry about the founders stash. Can't say that about 99% of the crypto out there, including Bitcoin and ETH.

Appreciate that some people will always be closed minded about this (and will mean people discount the opportunity) - but I do truly see this as a 5D chess move.

[–]rorowhat 1 point2 points  (0 children)

LTC is a big no thanks

[–]TAPTHATASS1TIMEPlatinum | QC: CC 265 2 points3 points  (3 children)

Damn op can you be my financial advisor