Quote from: cAPSLOCK on June 23, 2017, 03:38:29 PM

Quote from: JGoRed on June 23, 2017, 01:41:54 PM

Quote from: pönde on June 22, 2017, 06:24:25 PM

It would be great if XBT 1 august hassle would make some investors to find XMR as a safe coin.

I do think there's a good chance that that will happen, as it seems that Litecoin and Monero are both stable and at a decent price; so they'd make a good hedge against volatility.

I agree with this. A few weeks ago I took out (to my surprise) my first real position in Litecoin as I see it as having a new potential for use cases it did not have for years.

I did not, however reduce my tiny XMR position.

When it comes to Litecoin I cannot agree. Over the short term yes Litecoin could do very well if Bitcoin seizes up even more due to the 1 MB blocksize limit; however from the long term fundamental point of view Litecoin has the same issue as Bitcoin. Think Bitcoin with a 4 MB blocksize limit. This only kicks the can down the road.

At the heart of Bitcoin's scaling issue lies the 21,000,000 Bitcoin limit and the falling block reward. This creates the need of a "fee market" to replace the block rewards as a means of providing a mining incentive to secure the proof of work. This is fundamentally incompatible with scaling the blocksize. A good way to understand this is to look at how Monero scales the blocksize. Monero imposes a penalty on the miner which is proportional to the block reward. A rational miner will require that this penalty be compensated by the transaction fees paid by the transactions in the block. This effectively makes the total amount of fees paid per block proportional to the block reward. Monero's fees per KB are proportional blockreward/(effective median blocksize) for this reason. The net result is that if the block reward falls to zero so will the total amount of fees per block, leaving the coin vulnerable to a 51% attack. Monero addresses this issue by not allowing the blockreward to fall to zero with a minimum 0.6 XMR block reward per block, the "tail emission".

If one considers proposals to scale Bitcoin such as Bitcoin unlimited for example they impose much less severe penalties to increase the blocksize than what Monero does. The net result is that fees will to zero even faster than the block reward so the problem becomes even worse.

So where does this leave Litecoin? Unless the Litecoin community is prepared to increase the 84,000,000 Litecoin limit I fail to see how Litecoin will solve Bitcoin's problems over the long term.

Edit: Dash has the same fundamental issue here on top of a host of other issues, so does ZCash. Dogecoin does not since it has a permanent blockreward.