Litecoin Creator Proposes Miners Voluntarily Donate 1% for Development


Litecoin (LTC) founder Charlie Lee proposed mining pool donations as a new funding method for cryptocurrency development.  

“I think a better way to fund development is mining pools voluntarily donate a portion of the block reward,” Lee said in a tweet on Jan. 24, adding:

“How about Litecoin pools donate 1% (0.125 LTC) of block rewards to the @LTCFoundation? If every miner/pool does this, it amounts to about $1.5MM donation per year!”

With 1% donated on a consistent basis, Lee’s suggested solution would provide enough funding for Litecoin permanently going forward, Lee confirmed to Cointelegraph.

He explained:

“At current LTC price, 1% of block rewards is about 7x Litecoin Foundation’s yearly expenses. Even if a small percent of miners are generous enough to donate, the foundation would be able to put it to good use by funding developers to work on Litecoin Core, Mimble Wimble, LiteWallet, LN wallet, hosting the yearly Litecoin Summit, and pushing for adoption of Litecoin by merchants and users.”

Lee also confirmed such donations are voluntary, adding, “It wouldn’t be right if it wasn’t voluntary.” 

Funding issues

Garnering enough capital to run and operate a business can be difficult. The situation becomes more complicated when the business or project aims for decentralization. 

Rumors circulated in late 2019 regarding the Litecoin Foundation’s potential bankruptcy, which Lee denied in an Oct. 13 tweet. “Don’t listen to stupid fud and lies,” Lee said. “We have enough money to last 2 years.”

Lee’s 1% voluntary donation proposal comes after Bitcoin Cash (BCH) proponents Roger Ver and Jihan Wu suggested an “infrastructure funding plan,” requiring miners to pay 12.5% of block rewards to an operation in Hong Kong, Cointelegraph reported on Jan. 24. 

New concepts

In response to 51% attack concerns, Dogecoin merged its mining with Litecoin in 2014, enabling simultaneous mining of the two assets. Notably, this joint Litecoin and Dogecoin mining impacts Lee’s new mining pool donation concept. 

“Currently with merged mining of Dogecoin and other Scrypt coins, miners make 105%+ of block rewards,” Lee noted in a second tweet. “So 1% is a reasonably small amount to give back towards funding a public good.” 

Finally, Lee also toyed with the idea of miners choosing which Litecoin project their funds will go toward, asking the community for their opinions on his ideas as a whole.

“It’s important that miners can choose to support other Litecoin organizations as well,” he told Cointelegraph. “Miners should donate to the organizations that want to help out.”





Source Cointelegraph

Price Analysis Jan 24: BTC, ETH, XRP, BCH, BSV, LTC, EOS, BNB, XLM, ADA



Price Analysis Jan 24: BTC, ETH, XRP, BCH, BSV, LTC, EOS, BNB, XLM, ADA



Source Cointelegraph

Litecoin ‘Digital Silver’ Narrative Is Proven Wrong, New Data Shows


The start of 2020 has seen considerable gains in the cryptocurrency market as a whole. Recently, Bitcoin (BTC) price reached a 2-month record high crossing above the $9,000 mark as well as other cryptocurrencies such as Litecoin (LTC) reaching $62.80 which is the highest price seen since mid-November 2018.

Cryptocurrency market weekly overview. Source: Coin360

Cryptocurrency market weekly overview. Source: Coin360

Cryptocurrencies’ volatile behavior is one of the main concerns raised by researchers and it complicates the argument that Bitcoin should be classified as a traditional investment asset and that it is a reliable store of value.

Amid those discussions, Bitcoin has been closely compared to gold, while Litecoin has been associated with being “the silver to Bitcoin’s gold.”

As reported by Cointelegraph, new data suggests that the actual correlation between Bitcoin and gold is not significant, as well as gold’s explanatory power of Bitcoin returns. Nevertheless, Bitcoin is still frequently compared to gold, particularly as a potential safe-haven asset.

Since October 2019, silver prices have approached new record-highs. But does the latest data support the argument that Litecoin is the silver of cryptocurrencies? Could Bitcoin instead of Litecoin be closer to silver than to gold?

Silver prices since October 2019. Source: BullionVault

Silver prices since October 2019. Source: BullionVault

Is Bitcoin or Litecoin price action closer to silver?

Our data — from May 2013 until December 2019 — shows that Bitcoin and Litecoin returns are very positively correlated (0.67) with 1 implying a strong positive correlation and 0 meaning that the assets are not correlated. A reading of -1 shows that the assets are completely inversely correlated.

Meanwhile, the correlation between silver and Litecoin returns is close to zero (0.026), which is similar to Bitcoin’s correlation with silver (0.0025).

We further analyzed the correlation between the lagged silver returns and the two assets. In other words, the correlation between yesterday’s silver returns and today’s Litecoin and Bitcoin returns were compared.

However, the results are even more discouraging, since both show negative correlations with the lagged silver returns. Bitcoin’s correlation was -0.03 while Litecoin’s was -0.05.

April 2013-December 2019 correlation between silver, Bitcoin and Litecoin returns and silver’s lagged returns

April 2013-December 2019 correlation between silver, Bitcoin and Litecoin returns and silver’s lagged returns

Analyzing the rolling correlations provides a wider view and each data point in the diagram above refers to the correlation of silver and Bitcoin returns (BTC/silver), and between silver and Litecoin returns (LTC/silver) over the last 30 days.

One can see that the correlation between Bitcoin and silver, and Litecoin and silver, is very similar across time during both negative and positive periods.

Rolling correlations between Bitcoin/silver, and Litecoin/silver from May 2013-December 2019

Rolling correlations between Bitcoin/silver, and Litecoin/silver from May 2013-December 2019

Hence, both Bitcoin and Litecoin have a small correlation and similar relationship with silver. Thus, the Litecoin as “digital silver” narrative is challenged by these very low correlation values. Moreover, it’s no surprise that Bitcoin has surpassed both Litecoin and silver as the best investment option over the past ten years.

Cumulative Bitcoin, Litecoin and silver returns from investments made between May 2013 and January 2020

Cumulative Bitcoin, Litecoin and silver returns from investments made between May 2013 and January 2020

The relationship between digital assets and commodities from 2018 and 2019

For investors, a closer look at these relationships over the short-term can help draw better insights for future investment strategies. In 2018, the correlation between silver for both assets is slightly higher than the first results from May 2013 to December 2019, albeit still very low. Bitcoin is correlated at 0.05 with silver and Litecoin is correlated at 0.09.

Whereas in 2019, Bitcoin and Litecoin had opposite correlations to silver with Bitcoin and silver correlation being 0.03 and the Litecoin and silver correlation being negative at -0.02. Even the correlation between Bitcoin and Litecoin returns is lower than in other samples (0.74).

Nonetheless, both results are very close to 0, which leads us to believe that the correlation between these assets is not representative enough to draw reliable strategies for investors.

Correlation in 2019 between Silver returns, BTC returns, and Litecoin returns 

Correlation in 2019 between Silver returns, BTC returns, and Litecoin returns 

Is silver a useful predictor of Litecoin and Bitcoin returns?

The data, however, suggests that silver returns may work as a predictor for future Litecoin returns. From the model employed, if silver’s return rose by 1% yesterday, we can expect that Litecoin returns may decrease by -0.232% today. This statistically significant result can lead investors to assume that silver returns may work as a predictor for future Litecoin returns in a negative way. Similar outcomes were not found in the case of Bitcoin, however.

The ability to predict prices has been the holy grail of financial markets, hence the importance of this relationship between returns. Even though both crypto assets show a very low correlation with silver, the results for the lagged returns shed some light on the relationship between silver and future Litecoin returns.

Looking forward, investors may want to look at silver returns to draw strategies when buying/selling Litecoin based on this past silver return’s analysis. However, any strategy has to consider the fast-changing crypto market environment and careful analysis over different time periods, which can cause different conclusions.

Nevertheless, these findings can help us to conclude that Litecoin as the digital equivalent of silver is far-fetched due to the low correlations. However, we do highlight the value of investigating the digital silver narrative by establishing a new connection between returns, which is crucial for investors.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.





Source Cointelegraph

Price Analysis Jan 17: BTC, ETH, XRP, BCH, BSV, LTC, EOS, BNB, ETC, TRX



Price Analysis Jan 17: BTC, ETH, XRP, BCH, BSV, LTC, EOS, BNB, ETC, TRX



Source Cointelegraph

Price Analysis Jan 13: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XMR, TRX



Price Analysis Jan 13: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XMR, TRX



Source Cointelegraph

Top-5 Cryptos This Week (Jan 12): BSV, DASH, LINK, BCH, LTC



Top-5 Cryptos This Week (Jan 12): BSV, DASH, LINK, BCH, LTC



Source Cointelegraph

Trading Platform Offers Long-Term Crypto Portfolio for First-Time Users


A trading platform says it gives those new to cryptocurrency an opportunity to gain diversified exposure to the market with ease.

The company, eToro, says there is a huge buzz surrounding cryptocurrencies, but many consumers are unsure whether they should get involved — or indeed, how to.

The platform says it offers a simple, smart solution easy onboarding. All new users need to do is sign up and verify their account.

According to eToro, its goal is to open up the crypto markets — and provide access to major currencies such as Bitcoin and Ether — without requiring new users to perform in-depth research into specific coins.

The CryptoPortfolio consists of 14 coins that are weighted by market capitalization. As a result, eToro says that the bigger cryptocurrencies in the industry — Bitcoin, Ether and Litecoin among them — represent a large share of the portfolio. Its methodology places an emphasis on coins that have a market cap that exceeds $1 billion, as well as daily trading volumes of more than $20 million.

How CryptoPortfolio works

Dedicated specialists are responsible for rebalancing eToro’s CryptoPortfolio once every year — and in the event of extreme market scenarios delivering unexpected levels of volatility, a special committee is on hand to make adjustments on an ad hoc basis.

CryptoPortfolio users are not charged management fees, irrespective of how long their holding lasts, and they can liquidate their holding at any time with ease. However, eToro’s spreads are applicable when underlying financial transactions are initiated.

Emphasis on transparency

To help first-time crypto traders navigate the portfolio, detailed statistics are provided that deliver an insight into its performance.

A breakdown of asset allocation is provided so users can see the proportion of their holdings dedicated to different coins. At the time of writing, Bitcoin held a 50% share of the fund, with Ethe and Litecoin on relatively even footing at 5.8%. Bitcoin Cash, Neo and other coins and tokens made up the remaining 25%.

Users can also assess how the portfolio has performed in the past. A bar chart provides an at-a-glance look at whether the CryptoPortfolio made gains or losses over the past 12 months. To help eToro’s community make informed decisions, the trading platform also provides a risk score for the CryptoPortfolio. Prospective users can see the average and maximum risk scores for each month over the past year.

Secure and trusted

In business since 2007, eToro says it has gained the trust of thousands of users over this 12-year period. All funds held through CryptoPortfolio are secured and kept in a segregated account. The company says that privacy is one of its top priorities, and as a result, confidential information pertaining to holdings is never shared without a user’s permission.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.





Source Cointelegraph

Litecoin ‘Largest Miner Capitulation’ Great News for Bitcoin — Analyst


Bitcoin (BTC) could have its bull market induced by Litecoin (LTC) as the latter enters a bullish renaissance, noted statistician Willy Woo has forecast.

In a series of tweets on Jan. 6, Woo, well known in crypto circles as the creator of data resource Woobull, highlighted an upturn in Litecoin’s fortunes in recent weeks.

Woo: Litecoin difficulty “in recovery”

Specifically, it is the altcoin’s mining difficulty that has begun rising once more after more than six months of decline.

The difficulty is a measure of how much computing effort is required to process transactions on a cryptocurrency’s blockchain. A drop in price can make miners retire due to low profitability, which triggers a drop in difficulty. This, in turn, has implications for network security.

Litecoin difficulty vs. price, 2011-present. Source: Woobull

Litecoin difficulty vs. price, 2011-present. Source: Woobull

Woo said the second half of 2019 was “the largest miner capitulation LTC has ever faced.” Data from Woobull confirms difficulty dropping from over 16 million last July to just 4.7 million in mid-December.

Since then, the difficulty has begun improving, currently standing at 5.1 million. This, Woo says, could not only produce a bull run for Litecoin but spill over to fuel the already bubbling Bitcoin market.

“Litecoin Difficulty Ribbon now in recovery,” he wrote in further comments, adding:

“Should set up a bullish breakout of the bearish channel. I wouldn’t be surprised if LTC leads a bullish breakout of BTC.”

LTC major gains yet to appear

Litecoin launched in 2011 as a hard fork of the Bitcoin Core client and is currently the sixth-largest cryptocurrency by market cap.

Despite losing considerably in the altcoin collapse of 2018, the coin’s performance improved in 2019. As Cointelegraph reported, LTC/USD jumped from $32 to $141 in the first half of the year — frontrunning Bitcoin’s own leg-up that began on Apr. 1.

In November, Cointelegraph contributor Keith Wareing forecast “significant” incoming gains for LTC holders. In the event, markets hit $61 before declining to $37 before Christmas. At press time, Litecoin traded at $45 on 1.3% daily gains, modest compared to Bitcoin’s 5.5%.





Source Cointelegraph

Best Performing Cryptos of 2019 Not Named Bitcoin


Since the start of 2019, the crypto market has been on the receiving end of an insane amount of financial volatility. 

For example, in January, the total market capitalization of this burgeoning sector was around $130 billion. However, by July, the market at large had witnessed an influx of bullish momentum that pushed the total capitalization value of this space to a whopping $373 billion. Following this period, the aforementioned bull run proceeded to subside quite a bit, with the market now hovering a tad under the $200 billion threshold. 

A few cryptocurrencies maintained a strong financial standing all year long and were able to stave off the various economic slumps that were observed throughout 2019. Here are the standout cryptos not named Bitcoin. 

ChainLink 

While a fair few people may be surprised to see ChainLink (LINK) in the list of the best-performing cryptocurrencies of 2019. The platform essentially seeks to bridge the gap that exists between blockchain-based smart contracts and real-world applications.

From an economic standpoint, LINK started the year relatively slow — with the price of a single token rising from $0.31 to just over $0.45 over a five-month period. However, by the first week of July, the currency reached its financial apex, with a single LINK token being traded for as high as $3.74. And while the currency has lost a bit of its insane financial momentum over the last couple of months, LINK is still trading slightly above the $1.90 mark. 

All in all, the LINK/USD trading pair has surged by over 500% since the start of the year, and the LINK/BTC pair has also gained more than 300% over the same time period — which is quite an impressive feat, to say the least. 

Binance Coin 

Released onto the market back in mid-2017, Binance Coin (BNB) is a token that can be used for trading purposes as well as for the facilitation of various fee-related payments within the Binance exchange platform. Not only that, but Binance also provides BNB holders with various incentives and discounts for making use of the digital currency for internal transactions.

In regard to BNB’s performance, the currency started the year at a price point of around $6. However, by the final week of May, the price of a single BNB token rose to $35.20 — thereby signaling a growth of more than 450%. During the third quarter of 2019, BNB’s value slid from $33.10 to $15.79, thus showcasing a drastic reversal in the currency’s fortunes. However, over the last couple of months, BNB’s value has remained relatively stable, with the asset’s average value in December currently floating just below the $14 mark.

Since the start of the year, the overall value of the BNB/USD pair has increased by over 140%.

Tezos 

Tezos (XTZ) is a decentralized computing platform that makes use of a formal verification protocol as well as a proof-of-stake consensus module for its internal governance-related matters. In regard to how the system works, XTZ holders who stake their tokens are eligible to receive additional tokens as an incentive for creating and verifying blocks.

From a financial performance standpoint, XTZ started off the year at a price point of $0.47. However, by the end of the first quarter of 2019, the value of a single token had scaled up to an impressive $1.06. XTZ’s performance continued to surge between April and June, with the currency touching its annual high of $1.88 on May 19. During this year’s third quarter, XTZ’s value continued to hover around the $1–$1.20 region. However, since the start of December, the crypto asset has once again picked up momentum, with a single token currently trading for $1.51.

Over the course of 2019, the value of the XTZ/USD trading pair has increased by over 190%.

Synthetix Network Token

The Synthetix Network Token (SNX) is an ERC-20 token that is meant to facilitate all of the native transactions associated with the Synthetix exchange. Additionally, SNX tokens are traded using a peer-to-contract model and are also used as collateral to back SNX synthetic assets, called Synths, that are employed within the Synthetix Network to track the market value of any basic asset.

Between January and April, the price of a single SNX token touched a maximum of $0.07. However, since May, the digital currency has continued to soar in value — with the only major slip coming on Nov. 26, a time when the crypto market at large experienced a major financial pullback.

Overall, since the start of 2019, SNX’s value has increased by over 200%, with the currency currently trading for $1.33.

Bitcoin Cash 

Currently one of the market’s top 10 cryptocurrencies, Bitcoin Cash (BCH) is basically a hard fork of Bitcoin.

From a financial perspective, one BCH was trading for $135 during the second week of January. However, by the beginning of April, the currency had soared to over the $300 threshold. The currency reached its annual monetary apex on June 26, when the asset was trading for $479.96. During the third quarter of 2019, BCH’s value remained relatively stable — hovering around the $300 mark — but since the start of November, the currency has been continually slipping in value, with a single coin currently trading just over $195.

All in all, over the course of the last 12 months, the value of the BCH/USD trading pair has risen by over 30%.

Cosmos 

Cosmos (ATOM) is a decentralized network comprising of various blockchains that are independent, scalable and interoperable. The platform has gained a lot of attention over the course of 2019, especially since cryptocurrency associated with the network, ATOM, surged dramatically during the month of May. To put things into perspective, it bears mentioning that on Jan. 1, ATOM was trading for a price of $0.001. 

As things stand, the currency is selling well over $4.20.

Litecoin

Litecoin (LTC) is a top 10 cryptocurrency that was created by Charlie Lee to serve as a more resource-friendly version of Bitcoin. 

LTC was trading for $32 during the first week of January. But by June 22, the altcoin had risen to an impressive price point of $141.73. Since then, LTC’s performance has continued to decline, with the currency trading for an average price of around $43 throughout December.

All in all, the value of the LTC/USD trading pair has increased by around 40% since the start of the year.

Basic Attention Token

Basic Attention Token (BAT) is a digital currency used in the Brave internet browser. Brave is a blockchain-based internet browser that incentivizes its users’ internet habits by rewarding them with BAT tokens for watching ads, spending a certain amount of time on a particular website, etc. From a technical standpoint, the browser’s native framework is quite similar to that of Chromium — a project that was created by Brendan Eich, the man behind JavaScript and the co-founder of the Mozilla project. 

BAT started off the year trading at around $0.13. However, by the second half of April, the currency had already scaled up to its annual high of $0.44. Following this period, the top 50 asset continued to slide in value until September, after which it once again began a financial ascent, reaching a relative high of $0.27 on Nov 17. Since the start of December, BAT’s value has remained relatively stable around the $1.70 region. 

Over the course of 2019, BAT’s value has increased by around 35%.

Ether

Ether (ETH) is a top 10 crypto asset that is widely recognized as being the second most popular digital asset (i.e., after Bitcoin) on the market today. Ethereum developers envisioned the platform as a “world computer” for smart contracts — a digital protocol that helps facilitate, verify and enforce a contract whose terms have been predetermined. Not only that, but the Ethereum ecosystem also allows for the issuance of ERC-20 tokens.

On Jan. 13, Ether was trading for $116. However, over the course of the following six months, the value of the second-biggest cryptocurrency continued to increase, finally scaling up to its annual high of $334.66 on June 26. Following this period of bullish momentum, Ether once again continued to slide before finally settling down around a price range of $150–$180, except for a brief period in September when the currency surged above the $210 mark. 

Since late November, Ether has been trading steadily between $130 and $150, thereby showcasing an overall value increase of around 20% since the start of the year.

EOS 

EOS is a cryptocurrency platform that can be used by developers to devise a number of novel decentralized applications. In this regard, the EOS token is used to facilitate the eponymous system’s native transactions as well as its internal processes. Additionally, the EOS blockchain has been designed to be highly scalable and leaves a lot of room for customization — which is one of the main reasons why the project is so popular in the first place.

In terms of EOS’s financial performance, the digital currency was trading for $2.23 during the second week of January. Between the months of February and May, the asset surged quite dramatically, with the value of a single token reaching a price point of $8.54 on May 31. Over roughly the next five months, the currency’s value continued to float between $3–$3.80. However, since the last week of November, EOS has remained quite stable, currently trading around the $2.55 mark. 

Presently, the EOS/USD trading pair has gained around a 10% value since the start of the year.





Source Cointelegraph

Bitcoin Wealth Inequality Drops in 2019 Unlike Ether, Litecoin: Report


Bitcoin (BTC) whales may have made headlines this month, but its wealth is more evenly distributed in 2019 — the opposite of major altcoins.

That was among the findings of research by Clovr, which analyzed wallets and transactions from various cryptocurrencies in November.

Bitcoin majority ownership requirement still top

The results showed that Bitcoin’s wealth distribution has improved versus 2018, but among the top altcoins by market cap, whales are controlling more and more of the supply. 

According to Clovr, which excluded wallets known or suspected to be attached to exchanges, Bitcoin’s Gini coefficient — a measure of wealth distribution — fell from 0.66 to 0.64 this year. 

By contrast, Bitcoin Cash (BCH) increased its Gini rating from 0.73 to 0.75, while largest altcoin Ether (ETH) went from 0.69 to 0.78.

Cryptocurrency wealth inequality

Cryptocurrency wealth inequality. Source: BitInfoCharts, Clovr

Combined with the lower number of accounts needed for whales to theoretically conspire to control the blockchain, altcoins show themselves to be much more vulnerable than Bitcoin.

For whales to group together and control more than half the supply, the minimum number of controlled wallets for Bitcoin is 4,545.

Contrast that with Ether, where requires just 322, and Bitcoin Cash’s 1,109. Litecoin (LTC), another major altcoin, could be cornered from just 189 wallets.

Clovr used the top 10,000 wallet addresses from each cryptocurrency, excluding exchange wallets.

Researchers: Avoid cryptos with sub-$100M market cap

Beyond the big players, the research also found wealth inequality to be much more severe among major tokens on the Ethereum blockchain, or ERC-20 tokens.

Chief among these were Huobi Pool Token (HPT), the native currency of exchange Huobi’s mining pool, which had a Gini coefficient of 0.99 where 70% of the tokens are owned by a single address.

Across ERC-20, the smaller the token’s market cap, the bigger the wealth inequality problem becomes. 

“If centralized wealth worries you as a cryptocurrency investor, then it may help to avoid buying tokens with a market capitalization of less than $100 million,” researchers recommend.

As Cointelegraph reported, major transactions continue to catch the attention of analysts, particularly those whose origin or destination is unknown.

In September, a 94,000 BTC transaction saw its recipient wallet become what appeared to be the richest not belonging to an exchange.

Whale movements can also impact the market, as was allegedly the case last week when one of Bitfinex’s biggest traders appeared to “prop up” BTC/USD with a transaction worth 800 BTC (at the time $5.7 million).





Source Cointelegraph