For many years I have been analyzing the behavior of the agents of the crypto market, and I came to the conclusion that this market has a very serious problem of information asymmetry, because the criteria of the crypto investor criteria are varied, but there are few cases based on economic fundamentals, perhaps because many people outside the traditional market, adventurers and amateurs, thus, emotional factors, of taste, of identification, are superimposed on what really matters how; network security; technological advancements; development capacity; qualified technical staff; generation of value and market differential.
LTC unfortunately has a very limited development team! Really much! I am not referring to the technical capacity of the developers, although I only researched Charlie Lee, I am referring to what was generated of value for LTC all this time, and there was nothing! Simply nothing! This being what I will demonstrate briefly in this article, with the comparison of LTC with BCH.
You can see in the crypto market people buying Doge, out of sympathy, or NANO for ideology, are great examples of how this market is messy. LTC is yet another example, but more subtle. Charlie Lee's currency was created as an alternative to bitcoin, and its feature was to offer a lighter currency, and for that it increased the number of coins and reduced the average confirmation time of the blocks, therefore an extremely feature simplistic, without any importance. However, in the eyes of a novice investor it may seem at first to be perhaps relevant, but it is not.
What changes in the consumer's life for expect an average of 2 or 10 minutes, if currencies like LTC and BTC have RBF (Repleace By Fee) and can suffer a double expense attack on small transactions? At BCH, for example, the consumer does not need to wait for any confirmation for small transactions, being able to make trades instantly. In addition, the large amount of currencies that the LTC has makes its value possibly to be low, and that means greater volatility and consequently greater risk of investing in the asset. Which is not good for retail.
It may seem strange that LTC has the RBF feature, but that is because its team of developers has no creativity. They don't have the initiative to confront BTC technology. Everything LTC does is copy the BTC tools and vice versa, and everyone knows that LTC is almost a BTC testing platform. So how can LTC ever have a future? People are investing in a BTC Testnet, and this is bizarre!
LTC is really BTC's doormat, don't doubt it! That is why both communities get along so well, as one is the active one and the other is the submissive of this relationship, and the developers keep exchanging between them (codes obviously). BCH, this one, is hated by the BTC community, as it is a real threat and has been growing more and more, but LTC does not offer anything new, which may emerge above BTC in some quality, and for them it is good like that .
If you happen to think that I am exaggerating, I ask readers to make a simple reflection, ask yourself this way: “With more than nine years of existence, why doesn't LTC have at least a proper Android wallet that is good?” “With at least a 4 star rating?” The BCH has several! And it's not even four years old! How can you not invest in developing a good mobile wallet, if in theory the LTC would be to facilitate comparisons? In fact, it also does not want to threaten BTC in that sense and now considers itself a reserve of lesser value, like silver, and leaves BTC as the protagonist, as digital gold. This type of behavior is limiting and seriously interferes with the technological development of LTC.
So let's compare the currencies, although BCH already outperforms BTC in technology, many people still find LTC a viable alternative to confront BCH, which certainly doesn't make any sense, but still, clarifying this issue is the purpose that article.
As you can imagine the focus of a currency that has low transactions and speed should be its use in retail, which will require the use of blockchain making this asset gain real value and not just speculative value, becoming a real asset in economy, and consequently a reserve of value, which would put an end to BTC's leading role. However, as explained above, although this is the clear notion for developers, enthusiasts, and the community of both currencies, only BCH really seeks this, as LTC is subservient to BTC.
The first quality for analysis is the hashate, this is important to provide security in transactions, in this regard BCH is seven thousand times higher than LTC, and this is not way of speaking, since LTC has only 0.0003 Ehash / s against 2.383 Ehash / s of the BCH (at this point when I write). So a 51% attack on the LTC is quite easy, and this hasn't happened yet because of the algorithm, which is little used, so the attacker would need to spend on more specific machinery, but it is still very risky.
The second quality for evaluation is the fees charged. In the BCH network the rates are less than a cent, like LTC, but in a situation of tension in the network, BCH rates would not increase, unlike the LTC network, which would easily increase to absurd values, this because the BCH can process hundreds of transactions per second, while the LTC a few tens.
The third item is speed, and the fourth item is transactions without confirmation. At LTC, it is necessary to wait 2.5 minutes to validate your day-to-day shopping, but the BCH does not have an RBF, so the customer does not have to wait for the transaction to confirm on the network to make small purchases, so retail transactions at the BCH they are practically instantaneous.
The fifth quality is the use of the network, with its use we can value the importance of a cryptocurrency, because the greater the actual use of its blockchain means that more companies and people are demanding this technology for their services, and this is intrinsically linked to importance of cryptocurrency to the real economy. Being a crucial data for currencies that want to serve for retail. LTC in the first half never reached 200 thousand transactions, while BCH has advanced a lot in the last few months and is currently processing more than 322 thousand transactions in the same time period as LTC, therefore, more than triple LTC transactions.
The sixth quality is On-Chain transactions, currently BCH does not require the use of the Lightning Network (LN), which ensures greater security in transactions, as well as facilitating people and companies to create projects on top of the BCH blockchain, LTC blockchain is small and therefore not scalable, requiring the use of LN, which puts transactions at risk, as well as making it difficult for people and companies to use LTC for their needs exponentially.
The seventh item quality is the ease for adoption in retail, BCH has created a very friendly platform with several portfolios that facilitate the use of BCH for traders, there are also companies that teach and qualify people and companies to use BCH on the day day, like Satoshi Angel and Panmoni, LTC has only a POS (Point-Of-Sale) 3.9 note from the very limited in Play Store.
The eighth item is the possibility to create tokens natively in their Blockchains, after all, as the focus is retail, it is important that merchants and other companies can create digital assets to reward and attract their customers, BCH allows this with the Simple platform Ledger Protocol (SLP), but the LTC has nothing like that.
The ninth item, is another alternative for companies to be able to offer tokens to their customers, through NFT collectible tokens, the BCH blockchain already provides this service, but LTC does not.
The Tenth item is about anonymity and fungibility, because a currency needs to be fungible and also discreet, that keeps the privacy of those who use them, as a security measure, in nine years the LTC has not developed anything for anonymity, but recently they will be hitchhiking (as usual) in the Mimble Wimble (MW) protocol to try to solve this serious problem, while BCH allows anonymity and fungibility through CashFusion that can be activated with Electron Cash, your most popular Desktop wallet.
The eleventh item on the list is adherence to the DeFi protocols that serve to provide decentralized finance to users of both cryptocurrencies. LTC uses the LN protocol, which has already proved to be a failure, with very low adoption, and insecurity, not at all friendly, it is no coincidence that almost no company uses it so far, there are few attempts to use it by large companies, being present limited mode on some Exchanges. In the BCH, the DeFi protocol is still incipient, but it already has a service like Detoken that can offer retailers protection against market fluctuations, through this brilliant DeFi protocol.
The twelfth item, are wallets, because when we think of a currency for everyday life an Android wallet is essential, as this is the minimum that any cryptocurrency for retailers must offer, imagine remote and simple places, people in countries with economic weakness, needing to use cryptocurrencies for everyday purchases, well the BCH is perfect in this item because all of their wallets for Android are excellent with a lot of technology and friendly use, as the LTC only exists one and has a very low score among users besides the POS wallet, which is also very doubtful!
Each quality was evaluated with a score betwen 0 to 10, and the result you can see in the table below:
Thus, with this text it was possible to see how much better the BCH is compared to the LTC, with discrepant differences between the technological quality between the two currencies. If you've read this far you may be thinking; How can LTC be above BCH in MarketCap? The truth is that I am also surprised, but as written in the first paragraph, the conclusion is that most investors do not know this, do not make the correct analysis between the assets, just look at the charts and walk with the herd, even let her take them to a precipice. Honestly I could still write more, but I have little time for that, but this summary should be enough.
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I'm from the Brazilian BCH community and if you want me to write more texts like that, you can send me a generous tip so I can continue writing.
Leave a comment if you would like a comparison with BTC.
Until next time...