Let's talk lighting with Bitcoin and altcoins.
This is the year 2019 about 2 years have pass or more since LN was launch, a lot has happened since then, I will be talking about LN from a user prospective and I will not be so technical about it.
A lot of apps have launch mobile wallets some custodial some are not, that is in the Bitcoin side, in the Litecoin side I know that you can easily change some parameters on the application that run LN but that to my knowledge only works in a computer version of the software that makes LN work, example of that is LND, in the mobile side I think that Litecoin is not having any luck because I couldn't find any app that runs Litecoin on my android device, so I guess we need to launch some apps for Litecoin LN but unfortunately I am not a developer only a user so I guess I will have to wait for someone to drop a bone to the Litecoin LN mobile.
Litecoin is a cryptocurrency that is very old, I think it was launch on 2011, a quick search will give you the exact date, since than expectation have been put in the little brother of Bitcoin, but now let's switch to the present because the pass is not important to us now, what actually matters is the present and the future, from the pass we can only learn and fix it for the future but we can't change anything that has been already done.
Litecoin and Bitcoin since they are so similar in the way they were created and the way they actually work, what makes both tick is almost the same so they can both run almost what you write on bitcoin you can implement on both, with a few adjustments that is, what pretty much they both look the same, in the sense that both can run almost from the same perspective software implementations, you get my point.
Now in 2019, the halving of Litecoin was hyped and now we have a 50% since the new ATH this year of $144, now LTC is sitting right above $65, since the hyped was so anticipated than the price pump and then right after the halving it drop to current levels, this could be a lesson for any Bitcoin holder hoping to get a high return by when BTC halving comes and goes, take the experience that LTC thought us and plan accordingly.
Price matters because after all cryptocurrencies are financial instruments so they need to have monetary value to work otherwise humans will not put so much work and attention to it, plain and simple price, price, price. IF we don't have an economic incentive pretty much will drop any project like a hot potato in your hands and move on to another project that could give you some profits, The search for profits is a great way to search for innovations, not the perfect way but it gets things done. And cryptocurrency projects are no different in this regard, so I will always bring price to the equation because of this fact.
And let's actually talk LN, I tried by using Litecoin. At first I was using eclair because it was a graphical interface, so I decided to use eclair on my windows machine, I learn to create a node fund it and used up the funds, than I went to another graphical interface I believe it was lightning peach with that program I had an issue where my node didn't sent funds but the other side reflected it so I was punish by it because from a node to node prospective it looked like I was trying to cheat and steal money, I got my funds back after I explain my situation to my other side, than I realize that those graphical interfaces where easy to use but they still have some issues and bugs to fix and that was not what every other node operator was using, so I decided to use LND, well I got the hand of it by running zap wallet software on top of it. I used the Litecoin LN with LND and ZAP, to learn how to open, close, use and refill my channels, that experience is there somewhere in my brain and now I feel confident that I can run a Bitcoin LND node with ZAP on top of it to make easy to manage but I could also use the command line to do everything. To gain this knowledge I used Litecoin because that coins is cheaper and I didn't want to risk too much money into my learning process. so here we have a very simple use of the Litecoin LN, you can learn with it and implement your new knowledge into a bigger game BTC. I also noticed that in LTC a lot of nodes will open channels to you (inbound) and you don't have to ask for it they will just open one the moment you connect to their channels or nodes in BTC you have to either know somebody that is running a node, beg, or pay for it. In Litecoin they open channels to you and you don't have to ask they open the channels on their own, you don't have to ask, bed or pay. That was my experience when running the Litecoin LN node. I guess they can afford to do that because Litecoin is so cheap right now and because they also want to grow their network, I guess BTC LN was the same when the whole thing started. I would like to say thank to those that operate and run Litecoin LN nodes to me it was a better experience than when I run the BTC node.
I am not saying that Bitcoin LN sucks, it is just that since is more valuable in terms of dollars, that you don't see what Litecoin is doing which is being nice to new users, in BTC you have to have a reason to use LN for example you open a channels, use it and close it or leave it open, but if you want to have a well-connected channels you better be very prepare to foot the bill because opening and closing and maintaining channels will cost you a pretty penny, my experience with Litecoin is that almost everything was like a game the monetary part was not that important because Litecoin is so cheap to operate, but I guess that will change with time once Litecoin becomes more expensive this experience will go away.
The Litecoin and Bitcoin LN from my point of view could coexist, I rather use Litecoin than bitcoin cash, or a lot of people will like you to either use Litecoin for faster tx than Bitcoin Cash. They are trying to take on Bitcoin and Litecoin. I have used BCH in the past, at some point I looked at it and even bought, as well as Decred. BCH they have large blocks if they start to get more tx eventually normal people won't be able to run their nodes, have a pretty basic computer with only 1tb of hdd not even a ssd, I heard ETH will be using BCH chain, for god's sake let them use the BCH chain, you see the moment BCH starts to get tx their blocks will start to get bigger and bigger once they used up the 32mb for block a lot of users and people that run the Bitcoin ABC nodes will start to close up shop because their day to day computers won't have enough capacity to run such node and pretty soon only big computers and data center will run the Bitcoin ABC node, closing the big blocks debates, so please go to twitter and actually say to ETH and BCH community to please use the chain so that we can get over with it fast, this way their centralized nodes will come to light, I have a ThinkPad computer with only 1tb hdd, not a lot of people have a $3000 computer just to run large nodes like BCH because if ETH starts to use BCH that chain will use up the 32mb very quickly and at 32mb that will mean my computer won't be able to run the ABC node after about 1 year. So, for god's sake please Vitalik use Bitcoin Cash so that we can't get over with Bitcoin Cash faster.
Decred locking coins to gain more coins well sounds good but is not because if the price drops than you will be holding a lost and while to stake that is it your portfolio will get smaller and you could never recover from such loses, so my advice to you is if you don't need your money and if you think you won't need your crypto money within the next year by all means knock yourself out and buy every staking coin there is. To me staking coins are not worth it because the market in crypto is too young and prices move too quickly so staking is out of the question for me, especially because you never know for sure if you won't need your money with in the staking period essentially you never know, you think you don't need your money but truth is you never know until one day you realize you have an emergency and you need your money and the staking coin is not letting you withdraw than you will realize you actually did a bad investment. But if you are rich and don't have any emergency or if you have emergency money aside go for staking.
Now that Litecoin has drop 550 I think the price could recover from $63 to $100 again maybe all the hype is over and we can go to a stable price, at $0.10 for kilowatt hour the actual price of Litecoin could be a lot higher than today price, if we count in cost to produce.
Litecoin and Bitcoin will continue to go together they are the 2 old coins that I know, both coins are older than most other altcoins, Litecoin is 8 years old or about that much, I don't think that Litecoin will disappear just because Bitcoin is gold, if bitcoin is any proof of it than you will be right to think that if Bitcoin has survive 10 years already than Litecoin can go another 8 more.
There is no a real reason why Litecoin and Bitcoin won't coexist together unless you count in the Fud that a lot of people say about it, if you want to invest in altcoins than Litecoin because of its time it will be a very good candidate. A lot of people will say that if Bitcoin does it than why would you need another coins that does the same, those my friends are just fudsters, because even when Litecoin and Bitcoin can do the same stuff they both have very different parameters, Bitcoin will continue to be number one and it will continue to be the gold of store of value, but Litecoin has the potential to be the silver of store of value, because it follows on Bitcoin steps and because at some points both complement each other, we could say that Litecoin is the perfect second layer solution to Bitcoins first layer, that is what LN was thought me so far that with LN Litecoin has the potential to become the second layer blockchain solution to bitcoin keeping both decentralized and out of governments hands, I think you already know that but let me explain.
You see both chains are in fact different currencies but at the same time they almost the same currency, you see for Bitcoin to run on very computer you need small blocks so that the blockchain doesn't use a lot of space in hard drives, but also when a new block is fund the miner node needs to propagate such block with large blocks you will need faster and faster internet speeds to propagate such blocks like for example a 8mg block you will need 8x more bandwidth in your internet provider, let say you run on a 3g connection because you live in the third world or your speed is only 1mbps than your node will always be begin the network when it comes for you to sync with the whole network but at 1mb your connection will be enough. Because of this problem space and bandwidth than you will have to compromise and charge more on Bitcoin tx to keep small blocks, but then your tx will be more expensive and you will need second layer solution to make tx cheap, here it comes LN, and LN will combine both networks but they will still be separate chains, let say Bitcoin is worth $1,000,000 and let's say the current Bitcoin tx is 1 sat, that will mean you will need to pay $1.5 for tx, and now let's say Litecoin is worth about $5000 that will put LTC at 0.005 BTC, so you send your LTC to a atomic exchange from a fiat exchange and you pay 0.5% tx fee to the exchange than convert that to LN BTC your total cost will be $1 if you want to send $100 worth of Bitcoin, you will pay 0.0001 ltc for sending from LTC to swap exchange and $0.5 for exchanges fees which is about %0.5, with this setup you will only be paying $1 but if you send it directly with Bitcoin a the lowest price you will pay only about $1.5, but once Bitcoin reaches $1m I don’t think fees will be 1 sat, the higher the price goes for Bitcoin the more people will have to pay in fess so Litecoin will complement Bitcoin. specially if you want to hold your funds in the first layer than your funds will be saved in the Litecoin blockchain to later be converted into BTC LN and vice versa, in the future holding bitcoin in the first layer will be a luxury reserved only for early adapters or those willing to pay for extra security, if you bought Bitcoin after the price hits $1m than you will have to convert those btc into Litecoin to be saved into the Litecoin chain specially if your amount is little, let say you buy $100 worth of bitcoin when the price is $1m than you will either have to save that money in your exchange, wait until the BTC tx get lower or use the LN to convert into a cheaper first layer solution like Litecoin. At this point the Litecoin chain will be more secure than today and maybe a little more expensive than today’s
It is a fact that Bitcoin fees will only get higher and higher and that is a good thing for Litecoin and any other altcoin that implements LN solution because those coins could become the second layer blockchain solutions.
LIGHTING NETWORK IS THE SECOND LAYER SOLUTION BUT SOME ALTCOINS WILL BECOME THE SECOND LAYER BLOCKCHAIN SOLUTIONS ALL GLUE TOGETHER WITH LN.