Charlie Lee, the creator of Litecoin and the managing director of Litecoin Foundation, spoke about the reason why Litecoin stood the test of time, in an interview with Vlad Costea from Crypto Insider.
On the reason why Litecoin continues to stay in power and success, Charlie stated that the first reason is that the coin is “fair”, adding that people dislike supporting coins that are “unfair”. He went on to say that the other reason is the marketing term of the coin being silver to Bitcoin gold, stating that it is “kind of a self-fulfilling prophecy”.
“So, it’s easy to understand and it helps people get in and gives them a reason why Litecoin is valuable and I think just the fact that like coin has been around the network has been very stable hasn’t had any downtime, hasn’t been attacked it’s protected by its own basic mining machine.”
Lee added that there was no reason for the miners to attack the cryptocurrency or kill the coin which is profitable for them, because of the nakamoto consensus. He stated the Litecoin is “well-protected” by the right incentives – game theory, same as that of Bitcoin. The creator also pointed out that another reason for the coin’s success is that it is currently listed on all the major exchanges across the globe, creating the pathway for high-liquidity.
This was followed by the managing director speaking about the origin of the idea of making the coin the digital silver, like the way Bitcoin is digital gold. He said:
“I thought of it like pretty much the day I’d thought of Litecoin. So, I’ve seen like society has gold and silver as money. And I saw a potential need for a silver to Bitcoin’s gold because I saw Bitcoin as digital gold. So the idea for for like one to be silver is that it would have cheaper fees […] so I see a need for an alternative coin that would work alongside Bitcoin to fulfil the transactional needs of of everyone.”
Following this, Costea pointed out Lee’s statement that people do not prefer coins that are unfair and are pre-mined is contrary to several projects in the market. This includes Ethereum [ETH], the third largest cryptocurrency by market cap, had a huge pre-mine and one of the most successful projects in the space, and XRP, wherein the creators have control of over 70% of the supply.
“I think some of these coins do provide value, right. So people see value in Ethereum, not so sure about XRP but I mean people do see value of a coin working closely with banks so that’s why they would buy or use XRP.”
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