Topic: Time to switch on litecoin. BITCOIN IS DEAD for normal miner (Read 6405 times)

In the comming weeks I will be adding LTC as an option to buy product from www.cworld.com.au

There will be a ~2-5% exchange fee to handle the cost & volatility of LTC so that we will do daily cash outs to FIAT currency but essentially people will be able to buy Laptops Screens whatever computer equipment they want with LTC

I hope/asumme that I few people will be cracking open there LTC piggy banks.

Not gonna lie, this is how I first started. Free monies from my GPU? Lets buy some more GPUs! Over the past 16 months, I've learned quite a lot about the entire Bitcoin system. Not a lot, but some.

No crazyates, you understand perfectly well. Value going up will bring more mining, but the reverse is not true - more mining will not increase the currency's value. Trade, transactions and perceived value based on those determines the price of the currency. Far too many people in the bitcoin community are here purely because of mining and are totally detached from the concept that it's a cryptocurrency trade system we're trying to create here, and are only focused on mining profit. The best thing the miners can do to increase the value of their chosen currency is to start offering services or products with that currency to encourage trade in it instead of just concentrating on mining. As the profit margins of LTC mining whittle away the reality will eventually dawn on them, and people will switch off mining hardware for LTC as well. One could always have a belief that long term the value of their currency will eventually rise and then go on mining at a borderline loss, seeing it as some kind of long term investment. But then you could do the same with BTC too, since its price could also rise much more. Despite that, there is clear evidence that people invest in mining hardware and turn it on when price rises, and sell hardware and turn it off when price falls.

This is what I don't understand about all of the arguments for the defense of LTC: It's been established that for BTC, price drives difficulty. The more the BTC is worth, the more people want to mine it, and the more people are willing to mine. Wouldn't the same be true for LTC? So how can it be feasible to expect that the price would go up just because hundreds or thousands of GPUs decide to switch to LTC? That's actually counter-intuitive to what we've seen with BTC, yet most people still think it to be true.

The LTC price has risen, but only by a tiny amount. If more people actually considered it a valid currency, then more people would be buying, the price would go higher, and the difficulty would increase as more people made the switch. But that's not what we're seeing! Instead, we're seeing a consistently low price, and way too many miners. IMHO, that's why the LTC difficulty keeps bouncing - it's a case of WAY too much supply, and WAY too little demand. So taking this information and looking forward, I ask you again, how can adding MORE GPUs to an already fluctuating currency mean that it will suddenly become more valuable?

There will definately be a shift towards LTC as all those GPU's will only be good for LTC

Will give LTC some focus & possibly the price as well...we could assume that at least 50% of the current BTC ~22T\Hash will swap over to LTC

You forgot: if the price of BTC goes up, some people holding it might sell, many people (like me) may also keep bouncing around for many more weeks/months with their hash power while they decide what to do.

Additionally, other coins might affect the value/desirability of LTC.   

Does anyone know if ASICs will push down the profitability of LTC just purely because of the existence of a BTC to LTC exchange?  There are too many factors to do that in my head. I mean the supply of BTC will obviously remain 25/10min so from that perspective, it can't affect LTC that heavily.  ASICs shouldn't necessarily shoot the price of BTC up either.  If everyone's at 300MH/s now and then they all go to 3,000MH/s then they're all back to what they started from except the hardware cost (lol).  Then GPUs moving to LTC will make higher competition and drive the price...up?  I dunno.  What's the estimation of someone who took all things into consideration?

I've calculated LTC mining to be as high as 66% more profitable than BTC mining for short bursts since BTCs reward halving. I don't know what your power rates are,  how you're configuring your miners, or where/how you're converting cryptos, but it seems you're doing something wrong. Whether it's worth the hassle is debatable, but it's plainly more profitable to mine LTC when difficulty drops to the mid twenties.

Definitely


That's exactly what I used to do as well..but after accounting for exchange fees and energy used, I'd make just as much mining straight Bitcoins.

I tend to agree. Though I haven't completely bought into the concept of LTC mining full time, I have not nor do I intend to sell off GPU mining equipment until I see how this plays out for this very reason. I find the LTC exchange rate stability over the past few weeks since the halving to be encouraging.

i am new to BTC\LTC but with the massive amount of uncertainty that ASIC/BFL has on BTC mining, I am in the process of building 5 GPU LTC rigs and start mining on what is a guranteed $$ maker....I have 4k of orders with both bASIC & BFL but I see LTC as a stable solution for the next 12 months.

Also you will be able to buy computer equipment from my companys website in the next 3 weeks

Will use spot pricing for any sales so I dont see any risk involved

If somebody wants to use sea shells to buy product of me I am cool with it so long as i can then trade those sea shells for $$

ASIC is going to be the turbo boost for LTC as people swap focus ...get the miners/programmers/traders into LTC and its position is secure

This thread is a train wreck.

Why is it a bad idea /not good when you are a miner to mine something that is more profitable for you?  It's like somebody telling you you can't sell candy bars at a 711 for more than at a supermarket because it isn't ethical to charge people more than another store does.

Umm...you're suggesting that people are mining what's most profitable at any given time? How heinous.

I'm one of those that mines LTC when the difficulty gets re-adjusted lower, but I do not exchange them for BTC. I instead send them directly to my LTC-GLOBAL account.

Wait..people actually mine Litecoin for something other to dump it for Bitcoins?

All you have to do is look at the Litecoin difficulty over a period of a week to figure out what's going on. Difficulty goes up, people stop mining it...difficulty plummets, mining resumes to grab some coins and flip them over to BTC. Rinse and repeat.

+1

No, it's not.

Hourly coins mined by an HD5970 at stock clocks:

Bitcoin: HD5970: 660e6 (hash/sec) * 3600 (sec/hour) / (2^32 * 3370e3 (current difficulty)) * 25 (bitcoins/block) = .0041 bitcoins/hour
Litecoin: 700e3 (hash/sec) * 3600 (sec/hour) / (2^32 * 43.097 (current difficulty)) * 50 (litecoins/block) * .0059 (bitcoin/litecoin exchange rate) = .0040 bitcoins/hours

FTFY you usually use more LOLs in caps.

You don't have to use LTC dumbass.

All this talk about "economy building"...and what have you done so far for the Bitcoin Economy? Oh right nothing! lol

Almost everyone had said LTC was dead due to gpu mining earlier this year.. after a sharp 40-50% drop for a few weeks, the LTC price then began a huge bull move higher in price and hashrate. Price vs BTC now stands at over 15x the all time lows and over 7x the average price around that time before the upmove. Hashrate is currently varying between 25x and 40x what is was back then (obviously it has recently doubled to stay inline with the BTC reward halving, but even before that is was 10-15x).

People have been saying it was a pump and dump about to collapse for literally the last 6 months straight and it has held its high price the whole time. I know this as I frequent the btc-e website often and the chat is full of wannabe mccorvic's talking the same garbage every single day and being wrong. You would think after 180 days straight of being dead wrong and the price going higher and higher they would get the message, but some people never learn.

I will link my previous post about the merits of having more than one cryptocurrency because I am not going to re-write it:

https://bitcointalksearch.org/topic/m.1336428

I hate >100% PPS too. Trust no one.