Before we dive into the serious nature of this subject matter I find it appropriate to go over a few key points that should be kept in mind of the reader. This is the opinion of a user known as “Knight” and nothing more. Anything discussed here is meant to facilitate a vision of what Litecoin offers to the masses as a global solution.
Litecoin… it is a Decentralized fork of Bitcoin with benefits of speed, security, and scalability. But why do we need it? At first glance this is a good question and it took me a long time in crypto before i understood exactly what Litecoin is and what makes it a game changer. In order to understand why any crypto is needed there should be some perspective on the current state of the world and it’s monetary system of centralized power.
For as long as humans have been on Earth we have found ways to exchange goods and services through mediums of exchange. We used stones, sticks, water, land, ect… anything that was of value to the next person of which you needed something from. As time evolved humans began to find more clever ways to do business and a more common medium: Gold! This was before any fiat currency was globally accepted as money. Gold or Silver would be sent by land or water to the places it needed to go and this could’ve taken a month or two depending on location, if not longer.
Time passed and we evolved to paper money (notes) which was used as a more portable option and far less risky. This paper backed money was only good because the banks had the gold to back it up and replace the paper if needed…Until 1971 when Nixon (President of the United States at the time) drove the world’s leading economy away from the gold standard and made it to where people could no longer take their paper and turn it into gold (real money)…
The Dark Ages:
Fast forward to the 2000s and you find a lot of the paper money that used to be backed by gold is not anymore and has been inflated to astronomical proportions. In 1913 a $1 would’ve bought you 16 loaves of bread ($0.06 per loaf), and in 2013 the price of that same loaf is…over $1. At the time of writing (2022) a loaf of bread is $2.74.
The buying power of the dollar has fallen drastically… from 1913 to 2013 you are talking about a 94% decline! This is the cancer of inflation, the root of financial woes and trouble… and who is Economy’s doctor from this? The Federal Reserve and Centralized banks.
How is it possible to just create more of something and deem it acceptable by everyone even though it devalues everyone else’s portion without their consent? Government. The Federal Reserve (the Fed) is an independent entity to the Federal Government, but… The Federal Government hires the people in charge of the Fed. And the Feds’ job is to regulate the financial structure of the economy managing the downturns and upswings. Keep in mind that the Federal Reserve is made up of humans and they make errors like everyone else. So in no way is this a proper system to manage the debts and credits of an entire global economy!
Outside of the Fed regulations and how they inflate the dollar there is also the bank who thanks to the Fed and government can create “magic money” that really doesn’t exist.
Example. Say you have $100 and you put it in your bank. That bank now has control over that money and although when you check day and night your $100 stays there. But what you don’t see is what they do with your money. They loan it out to people and charge interest (for them)! so your $100 gets loaned to charlie with a fee… $97. Charlie then takes that and buys something with it… the merchant then puts that $97 into a bank…and yeah rinse and repeat. Now your $100 has been turned into $33,000 in the system, then that cash is used in the stock market to bet against the very loans they just gave you. No wonder it takes your bank days to process a transaction…
Bitcoin and Litecoin:
The problems above are the root of the cancer that eats away at society and takes it down a road of no return. Bitcoin when it was created had a Libertarian vision of returning to the old method of trade which was peer to peer not needing an intermediary (bank). This vision has been at the core of All of crypto, which is the financial freedom that each human seeks in their heart.
Litecoin as stated above is a fork (an update in simpler terms) of bitcoin and solves every major problem above!
Litecoin is a trusted network that runs by the community and for the community meaning there is no centralized authority on what should be done concerning it. Updates happen as needed and voted on by those working on the open source code! Litecoin also solves the problem of inflation because there will only ever be 84,000,000 LTC in existence and so the supply cannot be manipulated. Litecoin because of it’s speed can get a transaction through at the speed of light and with little to no cost to the user. When you receive your LTC in the wallet there is no one else who moves it around or manipulates it like a bank can do with fiat! It is yours and no one can move it except you! Litecoin also can be used as a payment through the wallet with the card feature so there is no need for a bank! With Blockchain as a monetary policy for a nation, it would eliminate the human potential for error and showcase that the Network knows best how to handle a global economy. From an information perspective it already does, look at google and how many people use it compared to an actual dictionary. Blockchain is no different! Humankind has been through cycle of cycle in a fiat spiral that regardless of how long you evade, it has one destination and that’s destruction. The system has been broken beyond repair and nature has give us a solution: Blockchain! It is the next evolution of a peer to peer infrastructure that will replace a Centralized authority of both monetary policy and social dynamics. Litecoin has already built the tech for the future and is only a couple of steps away from getting us to the vision that is Bitcoin and Litecoin. As soon as the wallet is able to accept a direct deposit and have the funds be converted into photons then the banks will no longer be needed and adoption is all that is left!
Litecoin is the Future. Fiat is Dead.