Signs of the halfening

The digital equivalent to physical silver

LTC backed second layer

It seems Satoshi Nakamoto was thinking about adding micro-payment channels to Bitcoin BTC. These channels would only register a final transaction on the blockchain if and when wanted / needed. This was supposed to be discussed in march 2011 by email. But afterwards it might just as easy to show some (incomplete) pre-release Bitcoin software sourcecode with a gamling game setup. How convient when something like that shows up at a website of big gambling players that forked Bitcoin BTC. Such claims afterwards, that are not secured as proof on a blockchain, should be treated with a lot of scepcis, I think.

Yet, in the code that became Bitcoin BTC only a very small blocksize was used initialy. And in the public discussions Satoshi Nakamoto also explained why there was caution needed in using bigger blocks. Therefore, if the main blockchain does only keep track of large value transactions, a second layer, or more, could take care of micro-payments. This seems very likely to me, as Satoshi seemed quite conservative about raising the blocksize. And those who tried to hijack the original Bitcoin BTC took a gamble. (Which is the business they are in. And they were in a hurry, apparantly.)

What does this have to do with Litecoin? Well, Cryptos like Litecoin, Vertcoin, DigiByte and Dogecoin all are based on the original Bitcoin BTC sourcecode. (And most still follow the sourcecode of the one and only.) The Litecoin branch though is moving forward with new innovations faster than Bitcoin. That was the case with the Lightning Network {LN} for instance. Micropayment channels became a reality first on the LTC network. And it is possible to send 1 Satoshi in a jiffy. Or even create 0.01 Satoshi payments, in theory.

MimbleWimble magic

As far as I see it, I think Satoshi, or the person/ group behind it, returned somewhere in 2016. This time known under the pseudonym of Tom Elvis Jedusor. And the next level Crypto gift was known as 'MimbleWimble'. Named after a magic-spell from the fantasy book/movie series 'Harry Potter'. The spell casted will cause the other to mix up words, making incoherent sentences. This will make it impossible for the other one to make a spell. As a protocol added to blockchain technology it will make transactions possible that are invisble to others. Every block will look like one big transaction and at the same time it will seem like total gibberish.

So, fairly anonymous transactions and added as a second layer to Bitcoin, Litecoin and so on, it will be like using cold-hard-cash. Where the banking-monetary-governance system wants to end the use of cash, Cryptos will implement it. Or already has by adding a second-layer like Lightning Network. The MimbleWimble protocol is another blockchain transaction innovation, which will keep the blockchain size down. As it only keeps the data that is needed. It will grow with its user outputs, not with all inputs and outputs. It is only the current state sum of all in- and outputs that matter. They have to add up to zero. The rest is considered garbage and can be dumped. And that kind of magic comes to Litecoin before Bitcoin.

The halfening price push

Many in the Cryptos realm expect Litecoin to go up in value. Not only because it is supposed to add a MimbleWimble layer, but also because of the upcoming halfing of the block reward. This will go from 25 LTC to 12.5 LTC. Therefore miners will receive way less LTC per added new block. And this makes the LTC 'to be found' more scarse. More pressure, higher demand, more rare, creating a higher price on the market. And already it passed the 'bitcash' gamblers crypto. Where I think it should even go to spot number 2. Litecoin LTC being like the digital equivalent of silver. As Bitcoin BTC is to gold.

And I know that this would mean Litecoin has to become valued at over 400 USA Dollar. But when Bitcoin BTC could go to 28'000, then Litecoin LTC could grow even more, relatively. If BTC goes up that much a lot of other Cryptos will too. Yet, this is merely speculation. Your guess might be as good as mine. So I'm putting away my crystal ball again. And leave it at a point where it is very reasonable for LTC to move up in marketvalue due to the upcoming halfing of the block reward going from 25 downto 12.5 LTC.

Payments and more

It is perfectly possible to use Cryptos in a second layer, like Lightning Network and/ or MimbleWimble {MW}. Where the last mentioned might even become a very effective sidechain for a lot of POW {Proof Of Work} mined Cryptos. And as I have used LN BTC I can state that is is amazingly fast. It is a kind of fun to send just a few Satoshi around, at zero cost. Now I was already used in doing so, thanks to Steem. But LN BTC is more like using cold-hard-cash. With such a second layer it now is very reasonable to buy a cup of coffee. As the transaction gets settled instantly it is very usable in day to day situations.

Now, back to why Bitcoin BTC is like a digit equivalent to gold and Litecoin LTC to silver. Maybe you know about the banking-monetary-governance system its currency once being connected to gold. Of course the private banks already were legally allowed to counterfit its money stock. This devaluating methode is known to the world as 'fractional reserve banking'. It is a way, for private banks, to create new fake monopoly counterfeited money out of nothing against an interest bearing debt. This causes a phenomena that people will recognize as: "Everything is becoming more expensive, constantly." And it has a guarantee for an economical crisis build in, or it is trigger for another 'big reset', a worldwar. It is a sick, perverted and disasterous system.

The turning point

Gold and silver backed money ended in the seventies of the previous century. With the rise of the digital realm, gaining speed at the time, this seems merely like a coincidence. But look at what the banking-monetary-governance system wants to end next? Yes, the use of cold-hard-cash and that kind of money is essential to many people all over the world. As many fear this is the next step to a new world order, based on a central authoritarian control system.

With the creation of Bitcoin BTC, and all the other Cryptos, humanity now has a real chance of using a free money system. Meaning free from an intermediate ruler, claiming to be the authority over humanity. Which to me sounds like the worst thinkable scenario. Authoritarianism, as slowly created by the global banking-monetary-governance system, can be ended. And with the creation of second layer transaction solutions Cryptos are becoming the real world usage alternative fast.

LTC backed Satoshi

A Crypto payment system, added as a second layer to a main blockchain can be seen as a kind of fast value transaction method. In a way that it is exactly known that the total value in any second layer is fully backed. This could be in Litecoin LTC, or any other Crypto, like Steem. As only the value in the second layer can be used that is pre-locked by the main blockchain. That one will only move large values around in blocks. To many that might now seem like rubbish, but now imagine Litecoin being valued at one million USA Dollar? Would you still consider buying a cup of coffee using the main blockchain? (Just calculate the transaction costs in such a scenario.)

It is an replacement for the current corrupted fake monopoly counterfeited money system. And that needs an extremely expensive gold alike Crypto, like Bitcoin BTC. And a silver one like Litecoin LTC. Where all them main blockchains carry enormous value storage that will back the second layers. And all can be proven by looking at the public ledgers of all of those main blockchains. (Here is where privacy blockchains will probably lose. As they cannot be checked in backing value.)

It just needs to add up to zero, to know that no fractional reserve counterfeiting occured. This is where Cryptos could prove themselves to become a storage of value. Which backs a true solid and fast 'cold-hard-cash' alike transactions system. Yet it is so much more easy to move about than real gold and silver, or create a new gold and or silver backed money system. As that would again be a chance for an authoritarian system to take under control. My bet is on Cryptos...

Please note to only invest in Cryptos what you are willing and able to lose.