Charlie Lee, the creator of Litecoin [LTC] recently spoke about the Litecoin network and its usage. He also expounded upon the value of Litecoin as sound money and provided information on the security of the network.
He started off by providing statistics of the Litecoin network. On a daily basis, there are about 30,000 transactions taking place, with over $300 million worth of money being sent on the network. This brings up the transaction value to be about $10,000 with fees of only 5 cents. Lee stated:
“Litecoin is acting as a really good form of money. It’s censorship resistance, it’s immutable, irreversible, it’s counterfeit proof and no one can devalue it so that’s what we’re working towards right we’re working towards a sound money that is that can be used without anyone telling you we’re not you can use that money for whatever purpose.”
He also stated that Litecoin was private and that no party can take away another’s funds. Moreover, Lee stated that more coins cannot be minted as well, as even if someone tries to, it will be rejected by the network.
Lee also offered information on the hashrate of the network, pegging it at around 237 TeraHash/S, with around 500,000 ASIC miners. At this hashrate, Lee stated that a 51% attack on Litecoin would require the attacker to purchase $150 million worth of new hardware.
The power usage of the Litecoin network sits at around 400 megawatts, said Lee. He compared it to the city of San Francisco, which utilizes 650 megawatts, stating that the Litecoin network utilizes as much power as a large city. He went on to say:
“People may say that that’s wasteful, but you have to understand this energy usage is actually what’s protecting the network. It’s actually what’s keeping Litecoin secure. With proof of work, the more energy that is spent on securing Litecoin the harder it is for any one person, one company, or one government to attack the coin.”
Lee went on to compare the Litecoin network to Bitcoin, which is undoubtedly a bigger network. Bitcoin’s market cap is 34x that of Litecoin. However, the network only has 8x the transactions of Litecoin’s. Lee pointed this out, and then went on to speak about the hashrate of the network. He stated:
“What’s most important about this is, if you look at the mining hash rate, the total cost for the Bitcoin network in terms of total number of miners that’s protecting network is about 10 times more than Litecoin. Litecoin is about 1/10 as secure as Bitcoin in that sense right it will take someone $1.3 billion worth of mining equipment to attack Bitcoin. For Litecoin it’s about 150 million so but the price is drastically different much more than that.”
Drawing on this data, Charlie Lee compared Litecoin to be the silver to Bitcoin’s gold. He further stated that it complements the coin, and works with it and alongside it to address the “needs of sound money for the future.”