Detailed explanation of LTC-20 agreement: development status, advantages and potential risks
Original title: "Litecoin LTC 20 protocol, the next speculative market that will be born hundreds of times and thousands of times?" "
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1. New Encryption Narrative——New Paradigm Investment Opportunities
In the past two weeks, the brc market has exploded, creating many myths of getting rich. You must have seen similar remarks: "If you spent 300 US dollars to inscribe the ordi inscription on BRC 20 in March, based on the cost of 3 US dollars per 1,000 pieces, it is now worth 1.5 million US dollars."
The occurrence of each round of wealth creation movement in the currency circle is essentially "the evolution of the Token distribution method", which is also the best pipeline for producing encrypted rich people in each cycle.
16 years of POW computing power to produce coins, 17 years of ICO (ETH exchange project Token), 18 years of IEO (trading platform currency exchange project Token), Fcoin transaction mining (mainstream currency exchange platform currency), VDS resonance mode, 20 Years of DeFi (provide liquidity in exchange for Token), swiping airdrops (gas fee gambling project Token), 21 years of play to earn...
Then to the recent BRC 20, deploying, minting and transferring inscriptions on Bitcoin. It is a more decentralized and fairer Token distribution method.
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2. Reproducible successful model - time machine investment rule
The most difficult thing in investment is timing, followed by price selection. It is difficult to grasp whether and when a new track will break out. In the process of 0-1, it may take a lot of time and capital cost on the countless 0s before the 1 appears.
Therefore, whenever a new paradigm opportunity appears in the market, it is a relatively simple and high-odds way to find and bet on the track dragon two. For example, when hyping the oracle track in 20 years, I missed the leading $link (9 times in 130 days), and I can also invest in $band (16 times in 35 days); when DeFi Summer was hot, I missed the leading uni, and later there was the bsc chain cake (the second-level highest increase is nearly 100 times); if you miss crypto punk, there will be boring apes, Azuki, etc.
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Advantages of Ltc 20
The various xRC 20 protocols that have sprung up like mushrooms are a concrete manifestation of the market fomo, and users are eagerly looking for the next opportunity that will multiply by a thousand times.
On May 2, the Litecoin community launched a forked version of the BRC 20 standard, called "LTC 20".
Compared with brc 20:Litecoin produces a block every 2.5 minutes (Bitcoin 10 minutes), which can obtain faster transaction confirmation, and at the same time the gas fee is extremely low (less than 0.1 u per transaction, ranging from a few u to hundreds of u per transaction in Bitcoin), It has more advantages in terms of block generation speed, flexibility, transaction fees, etc.
Compared with drc 20:The drc 20 protocol launched by the dogecoin community currently has no official leadership, and the parties are divided and scattered. And ltc 20 is an inscription market with official organizations and platforms. Secondly, Dogecoin has a higher gas fee per transaction, about 3 times that of Litecoin.
Compared with orc 20:orc 20 is a supplement to the brc 20 ecology. The form of currency issuance is more flexible, Token can be issued additionally, and the namespace is unlimited. Orc 20 is more like an Ethereum erc 20 representation on Bitcoin. To some extent, it deviates from the basic disk of the inscription hype. One of the questions it brings is, if Bitcoin is erc 20, why don't we use Ethereum's erc 20 directly?
The rise of brc 20 has been publicized as a movement against centralization and wealth whales. The essence behind it is that retail investors hope to turn themselves into serfs and sing, and let institutions, main forces, and trading platforms take everyone's orders.
There are only retail investors, and the market without the participation of main funds is like a pan of loose sand.
The core advantage of LTC 20 compared to other xRC protocols is that, with the halving narrative of Litecoin in August, market funds and flows will focus on Litecoin. LTC 20 is driven by the wealth-creating effect of BRC 20 before, and there will be a halving narrative later With the support of the company, it will become a reservoir for capital overflow. There are more opportunities to attract main players, institutions, and trading platforms to enter the market.
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ltc 20 development status
The upward momentum of LTC in the past two days has led to a surge in speculative interest in the token. The current notional value of LTC's open interest (OI) soared to $435 million, the highest level since the 2021 bull market phase.
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Source: Coinglass
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Source: Santiment
Unlike Bitcoin and Ethereum, which recorded transaction fee spikes during periods of network congestion, Litecoin users did not experience transaction fee spikes.
LTC 20 Inscription concept at a glance:
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Market development space for LTC 20
The entry threshold for LTC 20 is extremely low, and you can enter the Litecoin inscription market with as little as a few dollars.
Users are less sensitive to prices, and only need a small price to have the opportunity to earn high profits, and they will be addicted to it and ignore their own costs. If there is an uninterrupted wealth creation effect, LTC 20 has the opportunity to become the largest speculative market and flow pool for inscriptions.
Brc 20 and ltc 20 are not in an opposing competitive relationship, but interdependent and develop together.
What Litecoin has to do is to make the inscription market, which was originally played by only 1% of people, go to 5%, 10% or even higher through a lower threshold and smoother user experience, so that users will become more civilians in the future.
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4. Halving is the biggest narrative of Litecoin
The halving of Litecoin is one of the next biggest narratives in the currency circle. The funds and attention of the entire market will be focused on Litecoin. The halving is expected to be on August 3. If the interest groups behind Litecoin want to make trouble, Now is the best time.
The market always moves in the direction of least resistance. We can try to jump out of the fixed thinking mode and transfer the bet on whether Litecoin will be halved from the price of $LTC itself to LTC 20.
Take the inscription $HALF of the Litecoin halving concept as an example, the total amount is 21 million, and the cost of each mint (1000 coins) is 1 u. Suppose the main force uses tens of millions of dollars to push the market value of $HALF to 100 million U.S. dollars, $half increased by about 5,000 times, and ltc 20 gave birth to a new wealth myth, which will eventually form a flywheel effect.
Halved inscription half wealth creation effect—fomo funds poured into ltc 20—increased use cases of ltc, driving up the price of ltc currency—Litecoin miners make money/exchanges get traffic—inscription Summer—industry positive externalities (web2 traffic influx)
Perhaps the bulls of the market have not formed a strong Schelling point enough to push the Litecoin market cap to a new high, but this consensus Schelling point is enough to detonate the Ltc 20.
5. Speculative games under the positive sum game
Gambling is a zero-sum game, either you die or I die. The essence of speculation is a "positive sum game". The result of a positive sum game can be that most of the participants are winners. This is the charm of speculation.
The general trend of LTC 20 is positive sum game, incremental market.
If the market is regarded as a chess game, use "panoramic thinking" to analyze the core interests and goals of all market participants.
Litecoin official and the organization behind it:The core interests are currency price and ecology. As a veteran mining currency, if there is no response to the halving every four years, Litecoin will be eliminated by the market and gradually disappear in the long history of encryption. The emergence of LTC 20 has increased the usage scenarios and frequency of Litecoin. The dual narrative of halving + LTC 20, using tens of millions to hundreds of millions of dollars to market the Litecoin inscription market, creates a network effect and marketing value that is far greater than Pulling Litecoin directly is far more useful in itself.
litecoin miner: The popularity of BRC 20 has made Bitcoin miners the biggest beneficiary, and the leader has played a demonstration role, which will make Litecoin miners and mining machine manufacturers more intuitively feel the benefits of promoting the development of LTC 20.
Trading platform:The essence of an exchange is a traffic business, and the core KPIs are users and traffic. For projects that can create hot topics and attract users to trade, they are willing to contribute to the flames. Whoever can become the core trading market of LTC 20 Token first will have the opportunity to become the next big traffic pool.
media:The core appeal of the media is to pursue hot spots and create topics. Litecoin halving, as one of the biggest crypto narratives in the coming months, is a topic that all media cannot avoid. How to make the halving attractive and in-depth, LTC 20 is a good material. This announcement will in turn boost the development of LTC 20.
retail investors:Fomo psychology, missing brc 20 to get rich, and the funds are desperately looking for the next exit.
To the entire crypto industry:The user portraits behind blind boxes, digital collections, cards, trendy games, etc. are mainly young people of Generation Z. Low investment, scarcity, curiosity, and experiential consumption are the core reasons that attract them. As an aborigine in the digital age, he is keen on exploring novel things and agrees that everything can be fried. LTC 20 has similar properties and soil, and has the opportunity to become the next Web3 traffic entrance.
LTC 20 is currently still a blank market, and it is an opportunity to bet on multi-party market games with super high odds. The cost of inscriptions only needs to range from tens to thousands of dollars, and you can win a chance to earn hundreds of times and thousands of times.
The chart below shows the potential upside for LTC 20 if the Inscription trend continues. This is a blue ocean with a high probability of rapidly growing from 0 to hundreds of millions to billions of dollars in market value.
Predictive analysis of the development of things is important, but if the risk exposure is not calculated, it becomes a kind of obsession with self-brainwashing.
A single spark can start a prairie fire, but only if there is a source of that spark. The current risk point of Ltc 20 is that the infrastructure is not perfect. For example, the trading market of Ltc 20 has not been launched, and the 0-1 process cannot be carried out. Or when the market was launched, it coincided with the brc 20 or $ltc market being cold, these are uncontrollable factors.
The market is a piece of grass, where the money is blown and poured. Before time gives the final answer, any affirmative or negative remarks such as "the Litecoin halving market is long gone" and "LTC 20 will definitely develop" are nonsense with no reference value.
The real DYOR is to make a forward-looking prediction of the development direction of things, and at the same time do a good job of risk control, confirm the maximum risk tolerance, calculate the winning rate and odds, and finally decide whether to enter the game.
