Could Litecoin be the next big thing?

Could Litecoin be the next big thing?

Gooood day lions I hope you're all enjoying your weekend, the market is quite flat and alt coins seem to be taking a pounding. One of those Altcoins that are taking an absolute battering is Atom which is rapidly dropping and has had a lot of people unstake it recently.

Most of the movement has been caused due to the ongoing classifications or position of the Securities and Exchange Commission (SEC) who has deemed Atom the native token to the Cosmos ecosystem a Security.

Now, there is still a lot of hearings that need to occur between now and then to finalise that position but it has been enough to spook investors out of the Cosmos ecosystem which was already suffering since the TerraForm Labs collapse. As much of the Cosmos ecosystem did utilise USDT which undertook a death spiral.

The Blockchain survived but has been struggling to make movement and regain it's position ever since. This latest court hearings has continued to spook investors who appear to be making a b-line for the door before the token is deemed a security. What it means for people who already purchased the token is unknown but future purchases might be harder to achieve.

What is Litecoin?

Not long after Bitcoin launched we saw Litecoin launch and it was one of the early projects that gained some great traction and a lot of investment at it's start up. It was also one of the first blockchains to address some of Bitcoin's weaknesses and offer an alternative.

Unlike Bitcoin which uses SHA-256 for it's Proof-Of-Work Litecoin uses Scrypt which unlike Bitcoin does create a more harder token to mine as it requires a lot more computing power. This was done to ensure no one could take over the network in a 51% attack which has been a long fear of Bitcoin.

Litecoin also has a faster block confirmation speed in comparison to Bitcoin which takes 10 minutes, Litecoin only requires 2.5 minutes to confirm a block transaction. This itself means Litecoin has a better system for mainstream adoption.

Although unlike Bitcoin which only has 21 Million tokens Litecoin will have a total supply of 84 Million which does make it a lot more abundant than Bitcoin and why I guess we haven't seen Litecoin climb to the heights of Bitcoin. But there is still much hope for the digital asset especially in the current legal settings.

Litecoin can't be a security

So this is pretty big news and one that sets a good scene for Litecoin and it's future success and we touched on it briefly yesterday and it is something everyone should be watching given the SEC has provided a semi position on what is and isn't a security.

So far, we know the SEC deems Atom as a security so that means tokens that provide services or tasks like Atom will most likely fall under this category. This may also mean everyone's favorite Ethereum, which many banks are basing CBDC's on.

We know this because Coinbase CEO has flagged the SEC sought all digital assets to be removed except Bitcoin, which included Ethereum. Now that doesn't mean Ethereum is going anywhere and like mentioned above, how it will play out with tokens already sold and circulated is anyones guess. But it will probably mean the SEC will want some money from Vitalik for his operations.

Proof-Of-Work Gold

It will also likely mean, if we apply the system that potentially the SEC has come to being Proof-Of-Work concepts that require tokens to be mined rather than purchased as the reasoning behind not being a security.

Than we can take a punt and say this application will need to be applied to Litecoin and potentially any other digital assets that are proof-of-work and come into circulation through mining only. Selling assets on exchanges doesn't make the count as securities as that is people just trading fiat for something they believe to be of value. The same is done with Quartz crystals at a weekend market, just a lot cheaper. But those things were expensive in the 90s. My mum loved them..... rocks.... hmmm

Of course there are still a lot of what if's like what if the SEC loses and is unable to sustain it's position, what if it changes it's views, what if a lot of things. It will be in court for a very long time over the years and if it does take on Vitalik who has managed to create significant wealth and could sustain legal battles. The SEC will be in court burning tax money for years to come, so we could be here for a while.

Either way, I think there is some good news to have come out of what has already occurred and some ideas to stay away from certain projects.

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