Community Gathers to Defend Litecoin

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Community Gathers to Defend Litecoin

ForexMinute.com – Litecoin, known as the silver to the gold Bitcoin, is constantly losing its shine, at least in terms of market cap and price. Like we have mentioned it earlier, the arrival of ASICs has somewhat made it impossible for miners to make enough returns off their investments. Moreover, Litecoin is getting continuously attacked by the member of other coins’ communities, with most of them already calling it “dead”.

In the wake of such concerns, the Litecoin community is joining together to ultimately repel the FUD supposedly created by the Bitcoin followers. One of the Redditors named FreeJack2k2 openly accused the Bitcoin community of spreading unnecessary tensions within the Litecoin circle, so as to proclaim their seniority over the coin. “It’s so interesting,” he comments, “that every time there’s a big price move (up or down) the readership of this sub increases 3-4x its normal amount…and half of them are the “peanut gallery” coming from the Bitcoin sub or other altcoins with one tenth of Litecoin’s capitalization and daily trade volume, declaring it dead.”

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He further asks people to consider Litecoin as an alternative to painfully slow Bitcoin and highly-speculative range of altcoins, while leaving its market cap and prices aside. He, and many other Litecoiners, believe that their coin is the only one entity that has come close to challenging Bitcoin in terms of speed, daily volumes, and economics. They further criticizes the army of speculative, feature-rich coins for being useless and pointless to a common man. Litecoin, as per them, tries to stay from being speculative and is largely focusing on merchant adaption.

“Even though the mining imbalance due to ASICs has had a negative influence on price, that is not going to last. The protocol is secure. Litecoin has had almost no issues. It is so strong that any other Scrypt alt that wants to survive has to [merge] mine with it, or switch algorithms,” says FreeJack2k2.

However, it is the miners that make, or break, a cryptocurrency from roots. With the very core of Litecoin being unsatisfied with its income, there is a huge chance that most of them will prefer to move to other profitable coins. Some moral boosting posts might stop them for a while, but eventually what they are waiting for is good returns from their investments in expensive ASICs. One cannot ignore the ongoing dumping in the Litecoin market, which is itself alone to demoralize the entire Litecoin community.

But still, there is not a single coin out there which hasn’t seen this phase. Bitcoin itself once dropped over 80% somewhere in 2011, but soon emerged back with growing adaption rate. Litecoin still has the benefit for being the second-most adapted cryptocurrencies. All they need to focus on is their farmers for now.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com

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  • FreeJack2k2

    Appreciate the quotes…however the one aspect of your article that is factually incorrect is that Litecoin miners have the option of abandoning it to mine something “more profitable.” There is no other Scrypt coin with the market liquidity to support large scale miner migration. Mid to large scale miners are basically now forced to mine Litecoin, they do not have a choice. Scrypt ASICs will only hash the Scrypt algorithm, with the parameters that are implemented in Litecoin.

    The result of this “trapped hashrate” is creating an effect identical to what happened in SHA-256, when those ASICs were released. Bitcoin became the only SHA coin worth mining and everything else had to either merged mine, or attract whatever minor hashrate it could from enthusiast supporters and hope nobody bothered to attack them with superior hashrate.

    Litecoin’s network is growing at such a ridiculously rapid pace, with another giant expansion set for fall when the next generation of hardware hits, it is a virtual certainty that the economics of mining will assert themselves, in the absence of any other Scrypt coin worth mining.