Some facts about Litecoin

Some facts about Litecoin

Industry experts have stated that online virtual currencies have appeared in an endless stream. In addition to bitcoin and Litecoin, there are also space coins, BBQ coins, diamond coins, nebula coins and more. Driven by the sharp rise in bitcoin prices, the prices of other online virtual currencies such as Litecoin have also skyrocketed. The rapid growth of online virtual currency highlights suspicions of “speculation.” And the “hype” will free the development of virtual currencies on the Internet from virtual restrictions and lead to failures.

 

The rapid rise in bitcoin prices has exceeded many people’s expectations, “unexpectedly,” one bitcoin owner told reporters. Just six months ago, he feared that the continued fall in bitcoin prices would make it impossible to restore his capital.

On Nov. 19, the price of bitcoin hit a record high of 8,000 yuan each. Although it has recently fallen to around 5000 yuan each, the bullish expectations of most bitcoin holders who claim to be “little people” have not changed. On Nov. 26, in an online forum on the domestic online virtual currency, price discussion was mixed with simple topics such as “I heard that an online giant bought 100,000 bitcoins…” and “he doesn’t raise pigs anymore, maybe he changed all the pigs to bitcoins.” Bitcoin.

Compared to the endless bitcoin landscape in recent years, another online virtual currency, Litecoin, is relatively unknown, but its recent successes have been even more surprising. The reporter found that from 27 yuan per coin on Nov. 17, 2013 to 117 yuan per coin on Nov. 27, litecoin grew by more than 300% in just 10 days. One of the network’s users told reporters that litecoin has grown even more compared to bitcoin.

Some industry experts have told reporters that online virtual currencies have appeared in an endless stream. In addition to Bitcoin and Litecoin, there are also space coins, BBQ coins, diamond coins, nebula coins and more. Driven by the sharp rise in bitcoin prices, the prices of other online virtual currencies such as Litecoin have also skyrocketed. The rapid growth of online virtual currency highlights suspicions of “hype.” “Hype” will free the development of virtual currencies on the Internet from virtual restrictions and lead to failures.

 

“Rare amount” becomes a sign.

According to the data provided on the website, it can be seen that after several days of price fluctuations, the price of bitcoin remained at more than 5000 yuan per coin, but such a high price always blocked some customers who planned to invest. One investor told reporters that the price is too high and the investment risk is high. At the same time, in the posting panel of a certain website, the number of postings “asking for a gift” for one thousandth or even one ten-thousandth of bitcoin is growing rapidly. The investor told reporters that there are currently 12 million bitcoins in circulation, and the total amount of bitcoins that can be “mined” is expected to be 21 million. Currently, the complexity of “mining” is increasingly complex and cannot be proportional to the investment.

Being an online virtual currency, bitcoin is really just a string of digital codes. Its launch does not depend on any institution. It is based solely on a set of publicly available algorithms that no one can change. So why can digital codes be measured by price and show an uptrend?

One industry insider explained to reporters that increasingly positive news about legality and liquidity has led Bitcoin to highlight its monetary attributes, and that limiting quantity through special algorithms has led to price increases.

It also made online virtual currency developers realize that, in the context of “quantitative easing,” as long as an online virtual currency is “rare,” it will attract investors and will be firmly convinced that a fixed total amount will stimulate price growth.

In an interview, some investors claimed that Litecoin’s algorithm is different from Bitcoin’s algorithm and that the transaction process is faster. However, industry experts have stated that, in fact, Litecoin is no different from bitcoin, except that the developers have set the total amount of Litecoin at 84 million. He also said that many online virtual currencies that have appeared so far probably just have another name.

Maybe there are only a few people making money.

 

” Litecoin is crazy today , but I expect everyone else to remain rational. ” The investor turned to the website. The investor told reporters that only a few people actually make money.

The journalist learned that investors currently have two ways to get virtual coins on the Internet: direct purchase and “mining”, and the latter, which seems to be “collected for nothing”, is more respected by investors. “Buying a mining machine costs less than a few thousand yuan and more than tens of thousands of yuan. “The aforementioned investors revealed this to reporters.

According to industry experts, “mining machines” actually refer to computers that are used to obtain virtual currencies on the Internet. These computers are usually equipped with professional mining chips that use graphics cards to work and consume a lot of power. Users use a personal computer to download software and then run a certain algorithm, and after communicating with a remote server, they can receive the corresponding virtual currency from the network.

On the domestic trading site, the quotes of the “mining machine” are likely to be concentrated in the range of 14,000 to 30,000 yuan. One seller told online reporters that due to the relatively low price, a “mining machine” with a list price of 14,000 yuan is in short supply and can only be shipped a week after the buyer pays. Transaction records show that in just 30 days, the quantity of “mining machines” was sold by more than 100 units.

As the complexity of “mining” virtual currencies on the Internet increases, “mining machines” must continue to be upgraded. The only way to modernize is to increase investment. Right now, investments are more like a bottomless pit. Not only does it take an investment to buy a “mining machine”, but it also requires high energy bills to maintain the operation. Even if you sell virtual currencies online, you have to pay a commission of around 5% on electronic payment platforms, such as trading sites, Fortune 500 or Alipay. One internet user blatantly stated: “normal” people can’t make much money. Those who really make money are those who provide mining tools and trading services. ”

It really is. Recently, some media reported that a company called Bitquan Information Technology has accumulated great wealth by selling “mining machines” in just six months: in less than a year, its market value exceeded US$130 million.

 

The “carnival” niche is extremely risky.

In explaining the reason for Litecoin’s high price, some Litecoin owners jokingly called it a “Chinese auntie.” However, blocking the technical threshold has obviously increased the difficulty of Chinese aunties.

“I can’t understand” and “I don’t know.” after the reporter showed the principle of bitcoin generation to several random ordinary citizens, the answers were basically the same. In fact, Bitcoin was recognized in the circle of “geeks” with high computer skills only in the early days, and became the object of attention of ordinary people only after the price skyrocketed.

At the same time, extremely serious risks will deter investors. Recently, an 18-year-old bitcoin “banker” announced that the bitcoin bank he ran had been hacked and 4,100 bitcoins worth US$11.3 million had been stolen. The bitcoin price affected by the theft dropped from 350 rubles per coin on November 7 to less than 200 rubles per coin. In addition, against the backdrop of a sharp rise in virtual currency prices on the Internet, trading platforms have been hacked repeatedly. One investor told reporters that the system of online trading and storage of virtual currencies is very fragile and could eventually be destroyed by hackers.

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