The Litecoin has doubled five times in half a year, halving the countdown. Is the community a "magic bullet" for 8 years?

In 2019, the most surprising thing is the Litecoin, which has almost doubled in half a year.

Previously, Li Xiaolai had nothing to do with the bombing of Litecoin in the recording door incident. It was just a good story. The slogan "Bit Gold, Wright Silver" nailed its value to everyone's mind like a nail.

This is also true. Since 2013, Liteco has always occupied the top ten market value of single currency, and currently ranks sixth with US$6.5 billion. In comparison, bit stocks, dog money have been left behind, domain names, unlimited coins, etc. are even more short-lived.

So, as a "high imitation version" of bitcoin, how does Liteco survive?

Upgrade, Liteco's transformation from "little brother" to bitcoin "test field"

The Litecoin was born on October 8, 2011. According to founder Charlie Lee, he “re-engraved” the Litecoin on the basis of the bitcoin code, but the mining algorithm changed to a memory-focused Scrypt, and the total amount was adjusted to 84 million. The block time is reduced to 2.5 minutes. But halving the time, like Bitcoin, is four years.

The term "Bit Gold, Wright Silver" is not entirely PR, which is also related to Li Qiwei's original intention. "Lite currency is fast in transaction and low in handling fee. It is more suitable for small payment." In the era of no lightning network, Litecoin Define yourself as a cryptocurrency that is complementary to Bitcoin.

In 2017, bitcoin congestion, which was the “paying big deal”, was inefficient, and high fees became the focus of the community. However, the community block (advocating segregated witness + lightning network) and regional fast (proposed expansion to 2M) debated. In the end, the two sides parted ways and BCH was born.

At that time, Litecoin also sparked a big discussion of segregation testimony and lightning network. The community opinions were extremely uncoordinated and there was a possibility of splitting at any time. According to PZ, the core figure of the Litecoin community, he spent half a year in the past, organizing exchanges, chip dealers, mining machines, and miners to set up the Global Roundtable Forum of Litecoin to coordinate the interests of all parties. In May 2017, the Wright main network successfully activated the isolation testimony. In November, Lightning Network completed the main network activation. Since August, the Bitcoin network has activated the isolation testimony and launched the lightning network in March 2018.

In 2019, Grin fired, and Li Qiwei announced plans to introduce the MimbleWimble privacy protocol in the Litecoin upgrade. This is the same as Segregation Witness, which is a technology for Bitcoin to improve scalability and privacy. But because Bitcoin involves too many people's interests, these feature upgrades have far-reaching implications, and developers and communities appear cautious and cautious. This background, combined with the similarity between the Litecoin source code and Bitcoin, has successfully risen from the "little brother" to the technical test field.

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▲ Litecoin half-year price chart (Source: QKL123)

Living, the consensus of leek can also be consensus

2018 is the cruelest year for Litecoin.

At the end of 2017, Litecoin rose to a high of $369 with the broader market, and then all the way down to $22 at the end of the year. The legend is that the founder Li Qiwei cleared the Litecoin three times at the peak of the peak, and he won the title of “King of the King of Escape”.

What followed was a year-long question: Litecoin was slow to develop and the frequency of code updates was low. Bitcoin is on the line to isolate the Witness and Lightning Network, and various altcoins are born, and the actual demand for Litecoin is reduced.

The transfer took place in 2019. Including the halving and the introduction of the MimbleWimble privacy agreement, the price of the Wright currency has risen from 22 US dollars, the highest touched the high of 122 US dollars, and currently stays at 106 US dollars, an increase of about 5 times, leading the mainstream currency, staged A great counterattack in the Jedi has become the focus of public attention. This also reflects the lack of cash flow and physical industry support for cryptocurrency, the value is not clear, and the speculative nature is strong. Price has become a core factor in attracting public attention.

On June 1, 2019, the Leipzig Blockchain Technology Seminar was held in Wuhan, including early players such as Wu Jihan, Jiang Zhuorer, PZ, and Super Jun. Xu Kun, vice president of OK strategy, said that this round of rising, said that in 2018, Litecoin fell 94%, bitcoin only 80%, its oversold in the mainstream currency, plus the industry cycle and production cycle have the final result.

The Secretary-General of the Litecoin Roundtable Forum, PZ, said that Wright's features are not outstanding, but after eight years of testing, the security is very good. In fact, projects without communities are not easy to develop, and rising is a manifestation of greater consensus. The consensus can be decomposed into technology, security, stability, and demand. In contrast, the PPC that created the POS disappeared, largely because of the lack of cohesion in the community. The COINBIG exchange CEO's integration pointed out: "There is a high degree of consensus and wide acceptance, then it is valuable."

Li Xiaolai revealed the secret in the recording door: "The consensus of leeks is also a consensus." In the early days of cryptocurrency development, for a cryptocurrency, the price and community would affect it to some extent through the bulls and bears, in essence, The wealth effect determines whether the cryptocurrency has a “consensus”.

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▲On June 1st, Wrightcoin Technology discussed the Wuhan Summit, and on-site lottery, one user won 10 Litecoin Awards.

Halved, the beginning of a new story?

According to the setting of Litecoin, the first halving in August 2015, around August 7th, 2019 (block height 244220), the mining output will change from 25 to 12.5. By then, its annual inflation rate will fall from 8.6% to 4.3%.

At present, many people concerned have expressed their views on the impact of the halving of Litecoin. The mainstream views are as follows.

First, the reduction in production will change the market supply of Litecoin. Assuming that the growth rate of demand will remain the same, market speculation and FOM sentiment will increase demand. Once the growth rate of supply declines, the price will rise theoretically.

Second, the positive has been cashed in advance. Looking at the halving in 2015, the market broke out three months ahead of schedule, and the unit price rose from $1.3 to a maximum of $8.96. Then the price fell, and the unit price fell back to $2.95 on the day of production cut. At present, since 2019, its increase has reached five times, and the good fortune is bad.

Third, in 2015, the market is in a bear market and the market is more pessimistic. Four years later, public cognition and technological development have been completely different. The cryptocurrency has also ushered in the Mavericks, halving expectations and the future is expected.

Fourth, how to get the Litecoin still depends on the bitcoin "face". The correlation of digital currencies is getting stronger and stronger.

Huang Niu, CEO of the company, believes that do not make predictions on the short-term market, and there are many factors affecting the short-term market. Only two kinds of people can make money, one is reverse thinking, the other is long-term holding, and they are all anti-human. It is precisely the trader who will harvest according to his emotions.

"The next round of bitcoin halving is a good story to operate the market, so I think there will still be a reshuffle period, and a bull market will start in the first half of Bitcoin's real halving."

This sentence is about Bitcoin, and to some extent, it is also suitable for Litecoin.