Charlie Lee, the creator of Litecoin [LTC] recently spoke about the Litecoin network and its usage. He also expounded upon the value of Litecoin as sound money and provided information on the security of the network.
He started off by providing statistics of the Litecoin network. On a daily basis, there are about 30,000 transactions taking place, with over $300 million worth of money being sent on the network. This brings up the transaction value to be about $10,000 with fees of only 5 cents. Lee stated:
“Litecoin is acting as a really good form of money. It’s censorship resistance, it’s immutable, irreversible, it’s counterfeit proof and no one can devalue it so that’s what we’re working towards right we’re working towards a sound money that is that can be used without anyone telling you we’re not you can use that money for whatever purpose.”
He also stated that Litecoin was private and that no party can take away another’s funds. Moreover, Lee stated that more coins cannot be minted as well, as even if someone tries to, it will be rejected by the network.
Lee also offered information on the hashrate of the network, pegging it at around 237 TeraHash/S, with around 500,000 ASIC miners. At this hashrate, Lee stated that a 51% attack on Litecoin would require the attacker to purchase $150 million worth of new hardware.
The power usage of the Litecoin network sits at around 400 megawatts, said Lee. He compared it to the city of San Francisco, which utilizes 650 megawatts, stating that the Litecoin network utilizes as much power as a large city. He went on to say:
“People may say that that’s wasteful, but you have to understand this energy usage is actually what’s protecting the network. It’s actually what’s keeping Litecoin secure. With proof of work, the more energy that is spent on securing Litecoin the harder it is for any one person, one company, or one government to attack the coin.”
Lee went on to compare the Litecoin network to Bitcoin, which is undoubtedly a bigger network. Bitcoin’s market cap is 34x that of Litecoin. However, the network only has 8x the transactions of Litecoin’s. Lee pointed this out, and then went on to speak about the hashrate of the network. He stated:
“What’s most important about this is, if you look at the mining hash rate, the total cost for the Bitcoin network in terms of total number of miners that’s protecting network is about 10 times more than Litecoin. Litecoin is about 1/10 as secure as Bitcoin in that sense right it will take someone $1.3 billion worth of mining equipment to attack Bitcoin. For Litecoin it’s about 150 million so but the price is drastically different much more than that.”
Drawing on this data, Charlie Lee compared Litecoin to be the silver to Bitcoin’s gold. He further stated that it complements the coin, and works with it and alongside it to address the “needs of sound money for the future.”
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Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market
The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.
At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.
At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.
A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.
At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.
Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.
According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.
A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.
However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.
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