Topic: What Litecoin means for Bitcoin (and crypto in general) once it's on Mt.Gox - page 6. (Read 8600 times)
June 21, 2013, 06:16:13 PM
^ LTC threatens MtGox's entire business. It will absolutely destroy investor confidence in Bitcoin, and by extension, all cryptocurrencies derived from Bitcoin. Only those looking to pump their litecoins can't see that.
June 21, 2013, 06:14:52 PM
its like the 4th time they talked about LTC, wether you are a LTC advocate or not it doesn't matter, they lose all their reputation if they dont follow thru
You mean those who are heavily or maybe completely into LTC now will stop using Gox? They will revolt and cause massive BTC price drops by
dumping BTC they don't have anymore? They will deposit or withdraw nothing and thus destroy Gox or something?
It has nothing to do with the reveng eof the litecoiners. If a company that is the size and has the media attention like gox does they will follow thru with it. Especially in a line of business where there are always problems and people got to trust you and that you are doing the best that can be done, its not wise to promise something and not do it. Besides that they didnt need to promise it. Mtgox is losing its first mover advantage. A good way to counteract that is by being the first mover elsewhere. without litecoin mtgox doesnt have much going for it ATM besides liquidity. And in the BTC world its easy to switch exchanges
June 21, 2013, 06:07:56 PM
no to brag but it feels pretty cool to be responsible for Ł being the litecoin symbol, I hope gox implements it's use.
what was your responsibility with it ?
June 21, 2013, 05:58:14 PM
no to brag but it feels pretty cool to be responsible for Ł being the litecoin symbol, I hope gox implements it's use.
June 21, 2013, 05:54:08 PM
The only effect of adding coins from a network that is near duplicate of Bitcoin (and Litecoin is a near duplicate of Bitcoin) ...
Litecoin may be similar to Bitcoin, but it's not Bitcoin. That's actually the reason I began promoting its adoption.
Right, it's not Bitcoin. It's a near duplicate of Bitcoin, with 99.99% of the same code, and three superficial innovations through two changed parameters.
... to an exchange is increasing the supply of coins.
Let's put things in perspective shall we? Bitcoin and other cryptocurrencies thus far limit their total supply to some number of millions, Bitcoin's being 21 million and Litecoin 84 million, for example. There is a world population exceeding 7 billion and growing. Meanwhile, there are dollars (alone) with monetary unit supply in the several trillions. Does that help?
You don't get it. 21 million bitcoins isn't less than 7 billion. A bitcoin is equal to 100,000,000 Satoshis. Going from 21 million to 106 million coins (21 million bitcoins + 84 million litecoins) would mean inflating the money supply by 400%. That is all that matters.
And you really think litecoin will be the last cryptocurrency with an enthusiastic group of early adopters claiming it's a necessary 'silver to Bitcoin's gold'? No of course not. There will be others, and they will be push until MtGox puts them on the exchange too.
At this rate, cryptocurrency will have an inflation rate far above any fiat currency. This is already the criticism that Bitcoin's harshest critics are making against it, and now we see that it potentially has some merit, with late-comers to Bitcoin pushing for the addition of 84 million coins, on their Bitcoin 2 network, to the currency supply.
Instead of diluting the Bitcoin market with a copycat blockchain ...
The point of being a different coin is that it's not the same blockchain.
It is almost exactly the same as Bitcoin, and will be used in almost exactly the same roles. More coins = each coin has less value. Supply and demand is an iron-clad economic law.
... with 84 million additional coins, MtGox should redenominate BTC to mBTC so that people looking for 'cheap' coins can get them.
That doesn't mean cheap coins. Google's stock price is currently $880 per share. If I say I'll sell you .001 of a Google share for .88 cents each do you really think you've gotten "cheap" Google stock?
Yet people always claim Bitcoin-alts are cheaper than Bitcoin, for no other reason than the price they see on an exchange is lower.
June 21, 2013, 05:33:31 PM
The addition of Litecoin or any other number of altcoins to the exchanges won't make any difference to combating arbitrage. That's because the arbitrage arises from friction caused by moving fiat around and not bitcoins.
For instance you can buy a bitcoin on Bitstamp for $101 and sell it on Gox $110 at the moment. A perfect arbitrage opportunity you might think but withdrawing USD from Gox is difficult and that's the reason behind the price gap. Adding altcoins into the mix won't change that.
For instance you can buy a bitcoin on Bitstamp for $101 and sell it on Gox $110 at the moment. A perfect arbitrage opportunity you might think but withdrawing USD from Gox is difficult and that's the reason behind the price gap. Adding altcoins into the mix won't change that.
June 21, 2013, 05:10:35 PM
The only effect of adding coins from a network that is near duplicate of Bitcoin (and Litecoin is a near duplicate of Bitcoin) ...
Litecoin may be similar to Bitcoin, but it's not Bitcoin. That's actually the reason I began promoting its adoption. Even if there was another coin called Bitcoin with the exact same settings, but with a different imprint of coin owners and development team it wouldn't be Bitcoin (the one we call Bitcoin on MtGox).
In fact Litecoin does have other key differences. One is its hashing algorithm, which provides an in place backup if Bitcoin's ever breaks (or vice versa). Another is its blocks being 4x faster. Anyone on this forum a significant length of time will recall multiple threads complaining about not receiving even 1 confirmation, even when paying fees, sometimes for hours. Time is a factor in payments. To think it's not I think is frankly unrealistic.
... to an exchange is increasing the supply of coins.
Let's put things in perspective shall we? Bitcoin and other cryptocurrencies thus far limit their total supply to some number of millions, Bitcoin's being 21 million and Litecoin 84 million, for example. There is a world population exceeding 7 billion and growing. Meanwhile, there are dollars (alone) with monetary unit supply in the several trillions. Does that help?
Instead of diluting the Bitcoin market with a copycat blockchain ...
The point of being a different coin is that it's not the same blockchain. Also, since when is there a "Bitcoin" market? Isn't there only a free global market?
... with 84 million additional coins, MtGox should redenominate BTC to mBTC so that people looking for 'cheap' coins can get them.
That doesn't mean cheap coins. Google's stock price is currently $880 per share. If I say I'll sell you .001 of a Google share for .88 cents each do you really think you've gotten "cheap" Google stock?
June 21, 2013, 04:35:47 PM
Massive buy order for first three week. 0.039BTC/LTC
And, then massive sell: 0.021BTC/LTC.
And, then massive sell: 0.021BTC/LTC.
June 21, 2013, 04:34:23 PM
The only effect of adding coins from a network that is near duplicate of Bitcoin (and Litecoin is a near duplicate of Bitcoin) to an exchange is increasing the supply of coins.
Instead of diluting the Bitcoin market with a copycat blockchain with 84 million additional coins, MtGox should redenominate BTC to mBTC so that people looking for 'cheap' coins can get them.
Instead of diluting the Bitcoin market with a copycat blockchain with 84 million additional coins, MtGox should redenominate BTC to mBTC so that people looking for 'cheap' coins can get them.
June 21, 2013, 04:09:10 PM
I thinkt that LTC is kinda like silver for gold BTC
there will be usefull
there will be usefull
June 21, 2013, 03:57:11 PM
You know this brings up a good point I hadn't thought of. People around Bitcoin for a good length of time know it quickly becomes clear how superior Bitcoin is to other currencies when trying to move value, for example, when news comes out about an exchange or some other factor affecting Bitcoin significantly.
Suddenly people appreciate that Bitcoin can flow anywhere on the system, exchanges, merchants, private wallets etc. People with cash/USD etc. are stuck unless they can convert to Bitcoin to move value to more desirable places. Mt.Gox adding Litecoin (which may also spur others) will expand that ability giving people more options, which is always a good thing.
Suddenly people appreciate that Bitcoin can flow anywhere on the system, exchanges, merchants, private wallets etc. People with cash/USD etc. are stuck unless they can convert to Bitcoin to move value to more desirable places. Mt.Gox adding Litecoin (which may also spur others) will expand that ability giving people more options, which is always a good thing.
June 21, 2013, 03:37:34 PM
Gox has made it official that they will be adding Litecoin support once the new trading engine has been rolled out.
That is not true. What they said is this:
"As risky as it is to invoke the name of Litecoin (LTC???), we must apologize for not keeping everyone up to date. The fact is that the current
situation means a continued delay, but for good reasons. We’re looking at July right now, though that depends on a few things. Mainly, we
want to do things correctly from the beginning."
I interpret them as just being cautious about promising a specific day. I don't think with statements like this they don't intend to follow through.
June 21, 2013, 03:07:01 PM
Gox has made it official that they will be adding Litecoin support once the new trading engine has been rolled out.
That is not true. What they said is this:
"As risky as it is to invoke the name of Litecoin (LTC???), we must apologize for not keeping everyone up to date. The fact is that the current
situation means a continued delay, but for good reasons. We’re looking at July right now, though that depends on a few things. Mainly, we
want to do things correctly from the beginning."
I interpret them as just being cautious about promising a specific day. I don't think with statements like this they don't intend to follow through.
June 21, 2013, 02:47:42 PM
Good post. The only thing that will change arbitrage wise it the gap between BTC-E and Mtgox will close IMHO. That sucks for those making money off that ATM, but I dont see how that effects the global crypto ecosystem
June 21, 2013, 02:00:55 PM
Mods: this is about Bitcoin- even though Litecoin is in the title.
Gox has made it official that they will be adding Litecoin support once the new trading engine has been rolled out. Regardless of what people may think of Litecoin, this is a big step forward towards building a mostly-crypto world.
Currently arbitrage opportunities abound between exchanges for those with very large pockets who can afford to get, and leave large amounts of fiat on each exchange that they trade on. It's nearly impossible to move non-btc currencies between exchanges in anything resembling an efficient manner.
What Litecoin is going to open up is a more efficient arbitrage system between exchanges. It wont solve the issue of getting Fiat into/out of the exchanges, but it will allow traders to move more capital quickly between exchanges for profit.
What this means though is that long term our market system will become much more efficient. It will help decentralize exchanges and it will help stabilise prices. It will also give crypto an order of magnitude more privacy (which might be another regulation issue) as it effectively gives users a chance to break the privacy issue of the block chain. Moving from one coin to another will effectively erase the link between the origin and destination of your bitcoin (with some caveats) as your bitcoin can leave to Litecoin at one place in the blockchain and return from Litecoin is a completely different place. It won't be foolproof (Exchanges will be able to keep track of you and services) but it will help.
Interesting times ahead.
Gox has made it official that they will be adding Litecoin support once the new trading engine has been rolled out. Regardless of what people may think of Litecoin, this is a big step forward towards building a mostly-crypto world.
Currently arbitrage opportunities abound between exchanges for those with very large pockets who can afford to get, and leave large amounts of fiat on each exchange that they trade on. It's nearly impossible to move non-btc currencies between exchanges in anything resembling an efficient manner.
What Litecoin is going to open up is a more efficient arbitrage system between exchanges. It wont solve the issue of getting Fiat into/out of the exchanges, but it will allow traders to move more capital quickly between exchanges for profit.
What this means though is that long term our market system will become much more efficient. It will help decentralize exchanges and it will help stabilise prices. It will also give crypto an order of magnitude more privacy (which might be another regulation issue) as it effectively gives users a chance to break the privacy issue of the block chain. Moving from one coin to another will effectively erase the link between the origin and destination of your bitcoin (with some caveats) as your bitcoin can leave to Litecoin at one place in the blockchain and return from Litecoin is a completely different place. It won't be foolproof (Exchanges will be able to keep track of you and services) but it will help.
Interesting times ahead.