Sound money (litecoin): thoughts?
As many of you who have been in this space for a long time know, btc is the OG coin created in 2009. I suspect Satoshi Nakamoto decided to remain anonymous because he/she/they realized what a threat it would be to the broken and corrupt financial system. Two years later, in 2011, litecoin was created as a copy but with a few adjustments to basically make it faster. There will never be more than 21 million btcs (lowest denomination: 1 satoshi), and never more than 84 million litecoins (lowest denomination: 1 litoshi), which gives them an interrelational 1:4 ratio.
Btc is becoming more and more of a store of value, which means that many hoard it in anticipation of increased purchasing power for every btc/sat in the future, not unlike gold, and thus do not wish to spend it for a long time.
Litecoin, on the other hand, which has never intended to compete with btc, aims to be a currency, sound money of the future used for purchases instead of the current inflationary fiats of the world.
In economics there are a few characteristics of sound money: limited quantity/scarcity, decentralized, portable, secure, divisible, durable and to work a medium of exchange. Today, all these criteria are fulfilled by btc and litecoin alike.
There is one additional trait of sound money: fungibility/interchangeability, which basically means that every coin is worth as much as any other coin, be it one dollar, one British pund, one Chinese Yuan, one Euro, or what have you. It doesn't matter where that dollar was last week, last month, or ten years ago.
With the just-released MWEB upgrade (optional fungibility) to litecoin (which will activate in 1 year, or earlier if a minimum of 75% of miners signal for it before then), fungibility will be the last piece of the puzzle to make litecoin perfect, sound money. Possibly, it might be added to btc further ahead (which is made possible because litecoin code = btc code, but faster thanks to a few tweaks as mentioned above).
What are your thoughts on btc serving as a store of value, and litecoin working as a currency/sound money – of which there never can be printed more than the hard-capped supply at 84 million litecoins. Which means no fiat printing press to devalue people's hard-earned money. Litecoin is faster than btc, and just like btc, because they share the same code, can also utilize the lightning network for basically instant transactions.
It's disheartening to see newer, centralized, glitchy, VC-inflated crypto projects (won't mention any names, not here to single out and bash specific projects, but many of you will know which ones I'm talking about) luring newbies into this space, going against everything Satoshi Nakamoto envisioned for the future financial system. Btc is a giant, and reliable. Litecoin is a slightly liter giant, and reliable (over 10 years 100% uptime and 100,000,000 transactions)
So, I know many of you may be rooting for other projects (and there's no saying they can't thrive too!), but please try and stay on the topic of btc (gold/store of value) and litecoin (sound money), and what your honest thoughts are. Litecoin tends to lure out trolls from their caves and I've heard enough of those neanderthal inputs – I'm interested in honest, intelligent discussion. Both pros and cons are welcome, just please let's try and have a thoughtful thread instead of all the shilling/hating/trolling/moon farming/nonsense that's invaded this sub in recent years.
Looking forward to hear your thoughts!
submitted by /u/allspoetry
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