Some Facts About Litecoin

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Industry insiders have stated that online virtual currencies have appeared in an endless stream. In addition to Bitcoin and Litecoin, there are also space coins, barbecue 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 soared. 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 decline in the price of bitcoin would make it impossible to restore his capital.

  On November 19, the price of bitcoin reached a record high of 8000 yuan apiece. Despite the fact that it has recently fallen to around 5,000 yuan apiece, the bullish expectations of most bitcoin holders who claim to be “bit people” have not changed. On November 26, at an online forum on the national online virtual currency, the discussion of prices was mixed with simple topics such as “I heard that an online giant bought 100,000 bitcoins…” and “he doesn’t breed pigs anymore, maybe he changed all pigs to bitcoins.” Bitcoin.

  Compared to the endless landscape of bitcoin 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/coin on November 17, 2013 to 117 yuan/coin on November 27, litecoin grew by more than 300% in just 10 days. One of the network users told reporters that Litecoin has grown even more compared to Bitcoin.

  Some industry insiders have told reporters that online virtual currencies have appeared in an endless stream. In addition to Bitcoin and Litecoin, there are also space coins, barbecue 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 soared. The rapid growth of online virtual currency highlights suspicions of “speculation”. “Hype” will free the development of virtual currencies on the Internet from virtual restrictions and lead to failures.

  “Rare quantity” 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 over 5,000 yuan per coin, but such a high price has 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, on the publications panel of a certain website, the number of publications “asking for a gift” for one thousandth or even ten thousandth of bitcoin is growing rapidly. The investor told reporters that there are currently 12 million bitcoins in circulation, and it is expected that the total number of bitcoins that can be “mined” will be 21 million. Currently, the complexity of “mining” is becoming more and more complex and cannot be proportional to investment.

  Being a virtual online currency, bitcoin is really just a chain of digital codes. Its release 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?

  An industry insider explained to reporters that increasingly positive news about legality and liquidity has led to bitcoin highlighting its monetary attributes, and limiting the amount by special algorithms has led to price increases.

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

  In an interview, some investors stated that the Litecoin algorithm is different from the Bitcoin algorithm and that the transaction process is faster. However, industry insiders 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 only have another name.

  Perhaps there are only a few people who make money

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

  The journalist learned that currently investors have two ways to get virtual currencies on the Internet: direct purchase and “mining”, and the latter, which seems to be “picked up 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 investors mentioned above disclosed this to journalists.

  According to industry insiders“ “mining machines” actually refer to computers used to obtain virtual currencies on the internet. These computers are usually equipped with professional mining chips that use graphics cards for work and consume a lot of energy. 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 of the network.

  On the domestic trading site, the quotes of the “mining machine” are probably concentrated in the range of 14,000 to 30,000 yuan. One seller told online journalists that due to the relatively cheap price, a “mining machine” with a price list 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 number 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 updated. The only way to modernize is to increase investment. Right now, investments are more like a bottomless well. Not only does it take investment to buy a “mining machine”, but it also requires high energy bills to maintain operation. Even if you sell virtual currencies online, you have to pay a commission fee of about 5% on electronic payment platforms such as trading sites, Fortune 500 or Alipay. One netizen shamelessly stated: “ordinary” people can’t make a lot of money. Those who really make money are those who provide mining tools and commercial services. ”

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

  The “carnival” niche is extremely risky

  Explaining the reason for the high price of Litecoin, some Litecoin owners jokingly called her “Chinese aunt”. However, blocking the technical threshold has obviously increased the difficulty of Chinese aunts.

  ”I can’t understand” and “I don’t know”. after the journalist 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 it became the object of attention of ordinary people only after the price soared.

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