The risk of Leyte currency

1. Lightcoin, foreign name is litecoin, referred to as LTC. In fact, this is another kind of virtual digital currency after the emergence of bitcoin. Lightcoin is a kind of "peer-to-peer" internet currency, which can help users pay to anyone in the world

in technology, lightcoin has almost the same implementation principle as bitcoin. It is based on an open source encryption protocol in the process of creation and transfer. Like bitcoin, lightcoin is also not managed by the central authorities

as we all know, bitcoin is proced through mining machine. The Leyte coin is also proced by "mining". In the whole mining process of Leyte coin, the computer graphics card will carry out the relevant hash operation. When our "miner" calculates the "burst value", you can get 50 Leyte coins. However, with the continuous growth of the computing power of Wright coin, it is not possible to use a few "mining machines" to dig Wright coin. Therefore, it can only be added to the "ore pool", so that all the calculation power can be collected, and the "ore burst value" can be calculated more easily

the expected total number of online currencies for lightcoin is 84 million, which is four times the amount of online currencies issued by bitcoin. We can use Leyte currency to exchange legal currency and bitcoin. In general, it is through online trading platform. Since the transaction of Leyte coin is irreversible, the revocable transaction cannot be carried out, because it will bring the risk of refund.

2. Lightcoin is legal in China, but if you use lightcoin for illegal activities, it is illegal

bitcoin, lightcoin and other virtual cryptocurrencies are defined by the central bank as a kind of special Internet goods in China. Citizens can buy and sell freely at their own risk, which denies their monetary attribute. Central bank governor Zhou Xiaochuan once said that bitcoin is more like a tradable asset, similar to stamps. Since it's a commodity or asset, it's legal. Citizens' property is sacred and inviolable. Bitcoin house also published the full text of the joint notice on bitcoin risk issued by the central bank and other five ministries and commissions in 2013. You can see it from the emotional point of view

most of the major countries in the world also adopt a cold attitude towards bitcoin, because bitcoin may be used for money laundering, drug trading and other illegal activities.

3. Lightcoin itself is not a fraud, but there are a lot of people under the guise of lightcoin to carry out pyramid schemes. At present, lightcoin is second only to bitcoin in popularity and recognition, and has higher recognition in China. In addition to Wright coin, there are Ruitai coin, vitality coin, dog coin, ether coin and other excellent currencies.

4. Compared with struggling repeatedly in the 2000-3000 range in April, the current price is more than 3000, but the popularity seems to be even colder. Compared with the price at that time, the lightcoin has fallen by half instead of rising, and the LTC / BTC exchange rate has dropped by 1%
however, once it reaches the bottom of the market, it will start to warm up. Don't forget, last year was a big bull market after LTC / BTC fell below 1%

will LTC return to zero
I don't think so. I'm not saying that LTC will not fall any more. I'm just saying that if BTC has a bull market in the future, LTC will certainly have a bull market. The essence of LTC's current decline is that the niche coincides with BTC, which has no characteristics and application. The myth that scrypt algorithm can resist mining machine has been shattered

but what about other counterfeit coins
e to the strategy of fast halving, the computing power of dog coin is far from enough to compete with LTC. In theory, other algorithms such as X11 and x13, which are known to be able to resist mining machines, will be cracked sooner or later. In fact, coins such as mark and black, which are characterized by anonymity, are not very competitive. Anonymity is just a small demand, Can you imagine that money will be completely anonymous in the future? Anonymity is always just a small demand
I saw a "dark forest theory of cryptography currency" before, and I really forgot who put forward it in the circle. What I said was that under the premise of mining machinery, the currency of sha256 algorithm is easy to be killed by Avalon, so it doesn't grow very long; Now scrypt algorithm mining machine comes out, who is the master of this algorithm field? It can only be LTC. After a lot of currencies fall to a certain extent, they are in danger without the support of computing power. They speed up the capital flight, then speed up the escape of computing power, and enter the dead cycle. It's very difficult to get out and finally die slowly
dog coin is now in such a cycle. Coupled with the fact that it has been halved too fast, the escape of computing power is more obvious. Without computing power, the pow coin is a joke. The system is weak, and the big money can only go out, but the price has been falling, so can computing power. In addition, dog is just a fad culture, just like Jiangnan style, Who else is singing in the street now? Therefore, the prospect of dog coin is very bad. The dog coin is like this, and other scrypt coins are not worth mentioning. It seems that LTC dominates scrypt algorithm
BTC applications are colorful and LTC applications are scarce, which can't be compared. However, other currencies don't seem to have any applications either. All kinds of second-generation coins are too busy to worry about. Therefore, it's not a problem. When BTC rises sharply, it's expected that LTC will rise more than BTC
of course, I'm not encouraging you to buy the bottom. I haven't entered the LTC since 60
References: http://zl.yibite.com/point/2014/0814/13553.shtml

5. LTC has a wide range of applications, and many commodities support BTC and LTC payment. For example, Epay is the key. You think the risk of BTC is great. If you are optimistic about BTC, LTC is real silver, which is more reliable than any other counterfeit money
personally, I am optimistic about BTC, so I don't think LTC has any risks. If you want to die together, he'll be fine and the other one will be fine.

6.

model risk

virtual money is not real money, there is no central bank behind the total control and macro-control, its value depends entirely on its supply. For example, according to Nakamoto's algorithm, the final supply of bitcoin is 21 million, which will not be increased. However, if its model is found to be defective, resulting in a massive increase in money supply, the current trading platform and investors will lose their money

many algorithm enthusiasts have carried out repeated dection, and so far have not found the existence of model defects

risk possibility: 1

risk impact degree: 5

market depth risk

at present, the value chain of virtual currency is mainly composed of miners and traders, with less money supply and fewer market participants. Compared with other mature markets, bitcoin trading is not active and vulnerable to the impact of large capital inflow and outflow, resulting in sharp rise and fall. In addition, market depth risk will also lead to market manipulation risk and liquidity risk

platform risk

at present, many virtual currency platforms need to deposit funds into the platform to buy or sell. In order to attract investors, some platforms often offer free service charge. However, some free platforms are risky. For example, in October 2013, a bitcoin trading platform registered in Hong Kong suddenly ran away on the pretext of "being attacked by hackers", and all its executives disappeared. Later, it was estimated that the incident took away about 30 million yuan

should
Strategy: 1. After determining whether to invest in virtual currency and what kind of virtual currency to invest in, investors should investigate and screen the platform, not be affected by the small profits of handling charges, and choose a strong and reputable platform for trading behavior; 2. Investors should pay attention to all kinds of information of their investment platform and observe their reputation changes; 3. Regulators should bring the trading platform of virtual currency into the scope of supervision and require it to
pay reserve and margin to prevent such moral hazard

risk possibility: 1

risk influence degree: 4

circulation risk

goods
one of the basic functions of currency is to continuously use it as a means of purchase in the process of commodity circulation to realize the price of goods. So far, only a few businesses accept virtual currency as a means of payment for circulation. Or
in other words, most of the participants in the current virtual currency investment are for the purpose of earning the price difference, while only a small part of them are for the purpose of early storage as the future currency

coping strategies: the existing participants of virtual currency should actively recommend this category to the government and the public, and increase the number of businesses willing to accept virtual currency as a means of payment in the market

risk possibility: 4

risk impact degree: 3

legal subject risk

on December 5, 2013, the people's Bank of China, together with the Ministry of instry and information technology, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission, issued the notice on prevention of bitcoin risk, claiming that bitcoin should be a specific virtual business proct in nature, It does not have the same legal status as currency and cannot and should not be used as currency in the market. According to Circular No. 21 of 2014 issued by the IRS, bitcoin and other virtual currencies will be regarded as property rather than a currency. In a word, there is still a long way to go to establish the legal subject status of virtual currency

coping strategies: the existing participants of virtual currency should actively influence the government and regulatory authorities to establish the legal subject status of virtual currency as soon as possible

risk possibility: 5

risk impact degree: 3

7. There are risks. This currency is not recognized by the state. And then you have to take the risk of personal information leakage. And if the operator loses money, will it be dected from your card?

8. Try to avoid using QQ and QQ password to log in to other applications. There is a lot of risk. As for lightcoin, the risk should be greater, or to get a new account.