Today showed green arrows for all of the top 20
digital currency coins, with most making gains from five to ten percent.
At the moment, Lightning Network is still in its infancy which gives
alternative currency coins a competitive advantage of being «faster» and having «lower fees.»
In this article, I take a look at the 3 key benefits of Lightning Network, and whether or not they will make privacy coins and
pure currency coins obsolete.
However, when Lightning Network is fully functioning on top of Bitcoin (and Litecoin), I don't see how
other currency coins such as Bitcoin Cash, Dash, and Nano can compete.
The
first currency coins were used at the times of the pharos, and the first paper notes were then introduced by the Babylonians.
And, indeed, it has been tried many times; a holder of an
alternate currency coin will spend it in one place, and will turn around and use its unique code for a transaction somewhere else.
Over time, as Lighting Networks gradually become adopted, I predict
generic currency coins will lose most (or all) marketshare to Bitcoin and other coins that leverage the technology.
If Bitcoin achieves near zero fees, instant payments, and millions of transaction per second through LN, what is the future of
alternative currency coins?
Vulnerable coins: Any
pure currency coin that isn't capable of atomic swaps with BTC on the Lightning Network.
If you're really excited about this gorgeous RPG, the special edition will bag you a pop up book, introductions to each of the 8 characters and their individual origins, a map of the city, and
a currency coin replica!
However, when Lightning Network is implemented, these alternative
currency coins will likely lose their competitive edge.
Vulnerable coins: All «pure
currency coins» that do not implement Lightning Network.
If Lightning achieves its vision, there are wide - sweeping implications for both pure
currency coins and privacy coins alike.
Assuming speed and fees are comparable, why would
any currency coin try to compete with the security, immutability, and network effect of BTC / LTC?
I would love to hear from you: what effect could the Lightning Network potentially have on privacy and / or
currency coins?
My prediction is alternative
currency coins (that do not implement LN) have more than 6 months but less than 3 years before they dramatically lose market share.
Currency coins that are not «swap ready» with the Bitcoin Lightning Network will become obsolete by 2020.
These off - chain, cross-chain atomic swaps will cause a divide in
the currency coins: those that are «swap ready» with Lighting and those that disappear into the abyss.
While Lightning Network is ramping up, alternative
currency coins will maintain relevance.