What is Litecoin?
Bitcoin has often been described as "Digital Gold", so would that make Litecoin "Digital Silver"? If so, what does that really mean for us in the crypto currency ...
So, the question I want you to ask me, I'm gonna introduce myself and then I'm gonna ask, what is litecoin? Litecoin? No, I'm gonna have you ask me, "What is litecoin?" Litecoin? Yes. Okay. What is litecoin? Okay, we're gonna do that in just about a second. I'm gonna introduce myself, and then I'll ask you. And then do you want to keep running video and have her walk off or what? She can do whatever. Whatever you want.
You want to be goofy in the background, be goofy. Whatever. What's up, party people? This is Chris Derose. I'm the Community Director of the Counterparty Foundation, and here today, I found a really cool warehouse in downtown Fort Lauderdale and I 'm here with...
Case Armstrong. And tell them, what do you do in this warehouse? You are at the Shade Post, and we're located at First and First, 16 Northwest 1st Street in Fort Lauderdale. The Shade Post houses fashion, art and music and tonight, we are actually having music. So, come on down. We just ..
. Good enough, I love it. And you have a question that was submitted to me by one of my fans, and that question is? What is litecoin? What is litecoin? So, litecoin is all in the news right now. It's in the news because the price is high. It's in the news because I think a lot of people are looking to find alternatives to bitcoin that they find interesting. And so, I really wanted to address what it actually is.
So, let's get started. Litecoin came around in about 2012, I wanna say. I think it was Charles Lee who started the project and it was mostly a fork of the bitcoin source code. The litecoin had a couple of different changes to it. It was, I think, a maximum number of 84 million coins. I believe, in addition to that, there was a script based mining algorithm, which is a memory hard problem and not just a computationally hard problem.
So, the script based support, the memory and a few other minor, oh yes, two and a half-minute confirmation times. All those changes kinda came together to make litecoin, and I don't know what the big goal of litecoin was exactly, so much as it was marketed as the silver to bitcoin's gold or some such thing. And these changes were very minute at first. They still are fairly minute and they've never been a major differentiator to bitcoin. But I think, because it was the first all coin of any prominence whatsoever, that it got some investment. And it got investment based on this thinking that like silver was a precious metal to gold, which is a precious metal, which was the analogy to the bitcoin that we all use.
Now, I don't actually believe in that analogy at all. I think that bitcoin is a really useful commodity, but I don't actually believe that there's room for as secondary commodity in the same sense that a precious metal would offer, particularly in the sense of, well, those minor changes, are they really what's gonna set it aside? I don't know. So, I'm very skeptical. Nonetheless, we have a lot of people invested into this system and a number of people who invested, not only in the form of money, but also in the form of mining infrastructure. So, you see a lot of momentum going forward and then, right now, here we are, just before having today, I think it's in another month at the time of this recording and people are really getting excited because they believe that, when the having day comes, the price is gonna go up. I've been really bearish about this.
I haven't seen a lot of good work in litecoin. Charles Lee himself is working for Coinbase now. He's working on bitcoin and I don't think there's a lot of innovation in that field. I think that namecoin was a coin that was merged onto the litecoin chain and then I think the dogecoin was also a coin that was merged onto the litecoin chain. And, in both those senses, that might be something but we don't see a lot of support, in terms of payment processing. We don't see a lot of support in terms of what are people are actually making with this software.
They would designate it as having a utility that is any different than bitcoin and you look at the price, for example. You say, well, maybe there's room for a cheaper priced coin or some such thing, but even in that sense, relative to the immutability that you're gonna have with bitcoin, the amount of energy that's been burned to sustain the litecoin chain, that price difference isn't very, very much. It's actually kinda not that good a deal, if you ask me. Maybe the amount of energy being burned in litecoin is 100th or 1,000th of the price of bitcoin or 100,00th of the price of the bitcoin, but the bitcoin price is, what, still like six times greater, ten times I don't know what the number is. If you do the numbers that line up, but, yeah, I mean, we'll see what happens come having day. I think there's a lot to the calculation that people don't understand.
Sure, the output coming out of the miners is half of what it was prior, but it doesn't necessarily mean that the coin will perform well. Because what could very easily end up happening is that, because the miners are making less money, they are also less incentivized to mining. We'll see the mining power go down, we've been seeing that happen all year. All year, it's been going down at a very fast rate. Miners are really not putting much time into litecoin. So, we'll see if, after this having day, it continues.
I don't know. I'm a little skeptical that litecoins got much of a future, but I'm sure a lot of people disagree. I know a couple of people who've told me we need a Visa to the MasterCard that is bitcoin. Maybe that's true but, hey, we didn't need an internet two to the internet that was the internet. I don't know. It depends with how you look at these things, but I'm really bearish about it.
We'll see what happens. I'm really looking forward to it. There's never a dull moment in crypto and, hey, I don't know, maybe I skipped something and you feel otherwise. In fact, I probably did, so why don't you leave a comment in the video below and tell me what you think? I always love hearing from you guys, and I love getting your suggestions, comments, questions, you name it, and if you like this video, subscribe to the channel. I'd love to have you around. Later, party people.
Later! Shade Post.