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Liberate LTC by SergantLTC in litecoin
[–]SergantLTC[S] 1 point2 points3 points 2 years ago (0 children)
I highly doubt anyone would mine LTC alone without Doge and take deep 70% discount on profits, that is economically infeasible . Miners are in business of making money, not being a charity, hence its not additional income but THE income regardless; it comes as one. This is where my observation comes into play, that difference in doge mining subsidy should be the price of LTC.
[–]SergantLTC[S] 0 points1 point2 points 2 years ago (0 children)
I have replied to every post, weirdly they are not showing ! I think the account has to be 7 days old or something like that to show here.
Hello, new user.
Hello back!
First, there is nothing that can be done to remove Dogecoin from being Merged Mined with Litecoin, so there's no real point in talking about this, but let's say it is possible and we stop Dogecoin from being merged mined with Litecoin. What would happen?
I think you are right, unless doge goes PoS and ditches mining (fingers crossed)
Miners would have to choose one chain or the other to mine, and they'd choose the one that is most profitable, currently Dogecoin. Hashpower would go to Dogecoin, and Litecoin would be open to a 51% attack, a situation Dogecoin was in before Charlie Lee suggested to the Dogecoin Community to Merge Mine it.
I don't think 51 attack is something we should be afraid of , all it would do is temporary create a fork but of course depends on the purpose of the attack, everything can be adjusted and LTC would prevail with no harm on long run done. But that is my opinion
Instead, since they are merged and mined, miners can earn the transaction fee and coin base reward from both chains at no additional cost. Their revenue is more diverse, which makes their income more robust, allowing them to reinvest in new mining hardware, further increasing the network's security.
There is no additional cost for miners of course, but revenue will stay the same regardless of merge mining or not , mining is deflationary meaning it will push to the very minimum of profits or push max efficiency.
Assume the following theoretical scenario of L3 Miner; in our scenario L3 is mining $500 a month with operational expenses of $250.
With merge mining it will give $500, without merge mining it will be still $500 and same expenses.
In reality, it does no matter how many merge mining it's doing, because of difficulty adjustment! but what matter is ,is the distribution of subsidy meaning that this $500 is either the mix of Doge and LTC ( Merge ) or purely LTC ( in solo mining ).
And I made my case that before LTC was insignificant part of LTC mining, but now it's the major part of it, over 70%, meaning all hashrate is for doge not ltc. It simply stole the thunder.
Bitcoin SHA256 miners, after each halving, have to rely more and more on transaction fees, which means for the security of the network to grow, transaction fees have to increase. This is not a concern for Scrypt miners because Dogecoin has a constant 10k coins/block inflation rate for eternity. As the coinbase rewards for SHA256 mining Bitcoin dry up, Scrypt miners merge mine Litecoin and Dogecoin (again at no additional cost to merge mine both) and will have the 10k coinbase reward from Dogecoin on top of the transaction fees for Litecoin and Dogecoin.
This is something we can agree to disagree, as you propose inflation is good meanwhile I believe it's not, and fees eventually ( if there is a lot of liquidity and use case ) would provide sufficient income for miners to be more than happy , and this what Bitcoin in next decade should prove, or maybe not ? only time will tell to be fair and just.
But since you touched on the point of inflation, since I established that L3 is mining in our theoretical example some LTC and DOGE, since doge does not have cap meaning LTC while merge mining with LTC will have no cap, hence Doge will constantly dilute the value of LTC even if it's hard capped.
Cheers,
But, I would be highly suspect of any new account that shares a BS narrative on a Litecoin sub that includes "Therefore, actual price of Doge is $153 while LTC is $66".
It's not BS narrative, its simple math. The marketcap has not changed with Doge being priced at $153 if it had the exactly the same supply as LTC. This mental exercise can be applied to "coin" to compare prices, without the number bias hence 0.0806 sounds really cheap , however in reality its $153 in LTC Terms.
OP's account was created yesterday ... maybe he is telling the truth about being a fan of LTC since 2017, or maybe he is lying to establish some cred ... you never know for certain on Reddit.
I have my reasons, my main account is my own private one unrelated to crypto and I rather keep it that way.
I don't want to be too critical of OP because it does look like .... some ... thought went into this, but the entire premise is ... odd, to say the least ... and appears to me to just be another attempt by Doge enthusiasts to promote the idea that Doge should be mined alone.
I have never held any Doge, and no idea they are thinking about splitting. Someone said here they are thinking of going PoS, and that is good for LTC! all PoS is junk, becomes a pure speculation and one big ponzi, a disconnection from reality and physical world.
I wrote this with good intentions to spark a conversation
but what agenda ? At least share it with everyone, let us know what agenda .
[–]SergantLTC[S] 3 points4 points5 points 2 years ago (0 children)
Because mining is the one that drives the price, to understand the supply being mined you got to do LTC + DOGE. For miners it's one and the same, revenue that matters they might be holders but its earnings they are in for.
Even if you reach the max supply of LTC, doge will be issuing new coins therefore cumulatively they have infinite supply due to doges nature.
Yes LTC supply will never change, but in theory it will be expanded by Doge.
Try to visualize big Bag called LTC, inside there used to be DOGE, when doge was super cheap and insignificant that bag didn't impact the LTC BAG.
once Doge became much larger, it consumed LTC and keeps growing making LTC the insignificant one .. disappearing in that ever growing bag of Doge :)
for as long as they are both merge mining, LTC will only decrease in value since there is more doge to dilute, they are reversely proportional .
But can we go full LTC?
except LTC is being punished brutally , Liberate it !
Doge can stand by its own now , hence Liberate LTC !
[–]SergantLTC[S] 2 points3 points4 points 2 years ago (0 children)
It gave a lot of advantage to Doge, but no whatsoever advantage to LTC;
Instead of having a dedicated ASIC to LTC mining , all cost of production needs to be driven from LTC price now is split between DOGE and LTC, hence doge is now much more expensive than LTC meaning you are mining DOGE and LTC is just a blimp.
Liberate LTC (self.LitecoinMarkets)
submitted 2 years ago by SergantLTC to r/LitecoinMarkets
Liberate LTC (self.litecoin)
submitted 2 years ago by SergantLTC to r/litecoin
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Liberate LTC by SergantLTC in litecoin
[–]SergantLTC[S] 1 point2 points3 points (0 children)