Why does Litecoin suck compared to #Bitcoin?
Discussion
There is no second best.
Nice. But can you actually explain?
Is the question, why isn’t it trading in tighter correlation to bitcoin’s current YTD performance?
No I’m trying to build a rebuttal to someone who says litecoin PoW is just as valuable as Bitcoin and should have a place in one’s allocation. I don’t agree but can’t really make an argument until I understand the flaws in LT.
Digital scarcity can only be discovered once. After that, any copy is inherently not scarce and therefore doesn’t have the same properties of the original.
There are other details about Litecoin which are relevant but you can apply the above logic to 95% of shitcoins and it checks out.
LTC is a proof of work system with many orders of magnitude less hashpower than Bitcoin (673 TH/s compared to bitcoins 600 EH/s), whose sole value prob is one day being the “silver to Bitcoin’s gold”.
This is a terrible showcase of one’s historical knowledge when I hear this argument because the whole point of silver being used for medium of exchange in the past was because gold was far less divisible at small quantities of wealth.
As you probably know, bitcoin can be divided into “sats” or .00000001 BTC so there is no need for a smaller unit of wealth for medium of exchange.
They may also say “it’s faster at the base chain” but speed doesn’t matter when it doesn’t have substantial mining network backing it leaving it open for attack.
Charlie Lee and it has 4 times the supply as a fork of a better chain.
TLDR: bitcoin is the best money all else will go to zero.
Why?
It really goes to the nature of money. People want to use one money. That money was gold. They tried silver and gold but gold had better properties so the countries that used only silver or a majority of silver were laggards.
Gold had its flaws. Portability, Divisibility, Cognizablity.
So bankers realized they could hold gold and issue paper in its stead. That happened for a while. Then bankers got smart and started holding a fractional reserve. Along side governments. People got used to this and governments slowly hijacked the monetary system and removed golds backing and porced their countries to use their issuance. Making pure FIAT. So along the way people lost sight of the fact that in a free market people will commerce in one money; the money with the best characteristics of money.
Bitcoin is the best money there can be. It ranks highest on most of the characteristic scales and on the ones it doesn't it is growing leaps and bounds. Acceptability and General Acceptance.
LTC is too far behind on network effect, it is not decentralized it is not the best. Therefore like all other forms of money will go to zero against bitcoin.