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Litecoin will eventually survive and become a secondary currency besides Bitcoin

Posted by: Yoyokuo 2021-05-26 Comments Off on Litecoin will eventually survive and become a secondary currency besides Bitcoin

The current view on Litecoin is that it will eventually survive and become an auxiliary currency in addition to Bitcoin.

There is a famous slogan on the Litecoin website: “Bitcoin is gold, and Litecoin is silver.”

Another view argues from a logical point of view that Litecoin and other altcoins cannot succeed: if altcoins succeed, more altcoins will appear, and the proliferation of altcoins will lead to the collapse of value, and people will eventually find that Bitcoin is still maintaining its value; If the altcoin is unsuccessful, there will be no imitators, and the failed altcoin will eventually disappear.

The author tends to believe that cryptocurrency will eventually become an important member of the world’s mainstream currencies, and Bitcoin is not necessarily the only one among them, just like the coexistence of the US dollar, the euro, the yen, and the renminbi in real life. There will not be only one type of cryptocurrency, but there will not be countless types co-existing in the world. In the end, only Bitcoin and other 2~3 altcoins will survive. In fact, the key to the survival of an open source currency is the public’s confidence in it, and confidence comes from long-term and stable use.

In the two years from its invention to the present, Litecoin is gradually building public confidence in it. Whether this confidence can be maintained, there are still many unstable factors, one of which is that Litecoin is more vulnerable to 51% attacks than Bitcoin. Previously, FTC (feather coin), which uses the same algorithm as Litecoin, has been attacked by 51% and caused the collapse of public confidence. In fact, FTC is gradually withdrawing from the stage of history. Whether it can withstand 51% attacks and survive is a problem that Litecoin must solve.

As for the question of whether Litecoin can replace Bitcoin, perhaps one should go further: Is there an altcoin that can eventually replace Bitcoin? The answer is simple: no. There may be multiple cryptocurrencies in the world in the future, but no altcoin can replace the mainstream status of Bitcoin, no matter how excellent its algorithm is compared with Bitcoin. We must admit that compared with many altcoins, Bitcoin is not perfect. Its confirmation time is as long as 10 minutes, which is indeed time-consuming for transactions; the 51% attack on the sword of Damocles has been hanging overhead; from the perspective of environmental protection, the energy consumed by mining is almost wasted .

Therefore, many new altcoins claim that their advantage lies in making up for the shortcomings of Bitcoin. However, some of the flaws of Bitcoin itself are not really flaws. In other words, these deficiencies were deliberately preserved by the inventor after weighing the pros and cons. For example, the root of the 51% attack lies in the distributed mining characteristics of Bitcoin, the P2P currency itself.

Ripple’s XRP currency does not have to worry about 51% attacks, nor does it need to consume a lot of energy for mining, but its model of relying on trust gateways for transactions and centralized currency issuance means that it is easily controlled by government agencies. In addition, even if the design of some altcoins is indeed more ingenious, we must understand the fact that a product, no matter how good its indicators in all aspects, cannot guarantee that it can beat its competitors and achieve success.