Remarkable things are happening in the cryptocurrency world. Bitcoin sets a new all-time high this week, despite glaring technological issues. The Ethereum blockchain got clogged up due to virtual kittens. Litecoin reaches a new all-time high and holds its own. In fact, it seems some Bitcoin supports prefer to use LTC due to lower fees, proper scaling, and no transaction delays. This is an interesting development, especially when it comes to moving funds between exchanges and services.
Using Bitcoin as a currency is pretty much impossible right now. More specifically, it is impossible if you want to use it as a replacement for other tools. Bitcoin is ridiculously expensive to spend right now and the network can’t handle any serious transaction queue. While the mempool is finally shrinking again, there is still a long way to go. Everyone knows Bitcoin has scaling issues, yet they seemingly cannot be resolved in a timely manner whatsoever. Even sending Bitcoin between exchanges has become far too cumbersome.
Litecoin Trumps Bitcoin for Peer-to-peer Payment Functionality
To counter this problem, more and more traders convert Bitcoin to altcoins. It seems Litecoin is of great interest in this regard. It is a liquid currency supported on many exchanges and online platforms. Moreover, Litecoin has far cheaper fees compared to Bitcoin. It is evident this is the new go-to solution to move money between online services. It isn’t necessarily responsible for the recent LTC price increase, though, but it remains to be seen what drove that trend.
When it comes to peer-to-peer payments, Bitcoin becomes less suitable every month. It is evident there is a need for alternatives.Litecoin checks a lot of the right boxes in this regard. Although it won’t replace Bitcoin or even Ethereum, it is the best option to move money around right now.This can’t be the objective for Bitcoin in the long-term, though. However, there is so much focus on the price, everything else is far less important to speculators. Whether or not this justifies the current BTC price, is a different matter altogether.
Addressing the fee and congestion situation in Bitcoin will not be easy whatsoever. In fact, it may never be resolved in our lifetime, for all we know.This doesn’t mean Bitcoin doesn’t have value or is a major cryptocurrency. It has lost track of the peer-to-peer payment aspect many people fell in love with. That is a very troublesome development which will hurt this currency in the long run. Moreover, it will also allow altcoins such as Litecoin to thrive in the future. An interesting situation well worth keeping an eye on.
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