Bitcoin Forum

So a lot of GPU miners these days are saying it's time to jump ship to LTC. They say the pasture is greener over there in LTC land and you can get more profit by exchanging LTC for BTC, than just by mining BTC. Sounds like a plan, but can anyone explain why anyone in their right mind would use their BTC to buy the mined LTC? I mean why would anyone even need to buy LTC, in the first place? Are people really doing this or is it just some legend?

Honest question. Thanks!

Sounds like a real great plan, all of us still mining btc with gpus should go mine litecoins. We'll all get rich!

It may be more profitable, slightly, right now, but if all remaining gpu miners switched to litecoin the difficulty would jump eating whatever extra profit you might have made.

It's possible that LTC could increase in value with so many people invested, or it could just tank.

Does that answer your question?

Some people dont have rigs to mine.

I use Bitcoins to buy Litecoins because I have too many Bitcoins and not enough Litecoins.
Pretty simple.

There's no such thing as too many  :P

Why people buy yuan, euro, ruble... when they can use dolar  ;)

How did this get here   3 posts ???

Because He's  "Jr. Member" and Forum permissions are based on ranks but ranks are not based on post counts now.

Every era has it's legends. Knight of the Round Table, Zorro, Paul Bunyan, ect. Today's day and age is far more mundane. Our legend is people buying mined LTC with their BTC.

Hmmm, great...

I don't see where is the problem your opinion is better becayse you have more posts, really?

because a lot of BTC mining is from people with ASICS, they buy LTC to hedge their capital. Because they are so efficient at mining BTC, they can pick up more LTC then GPU miners through the exchange.

this gives them a significant advantage if LTC were ever to rise in value.


40% more profitable is not slightly better then mining BTC, it's significantly more profitable then BTC. And, by now almost all BTC GPU's have already switched over.

I didn't say that...
But at least users can understand me because I know how to spell.

Are you saying the only use of LTC is its possible future value, and these people are buying it in droves just because they are banking on it? Instead of outright liquidating their BTC?

Yes

OK let me ask another way. By mining LTC (and hoping to sell it for BTC), I am pretty much relying on people to behave irrationally?

Just because you don't believe LTC has any other inherent value other than to exchange it for BTC, it doesn't mean the rest of the world is acting irrationally by selling BTC for LTC. That's just how you perceive it, not how everyone sees it.

But the thing is there is currently no inherent value in LTC and people are just hoping it may get some value some day, instead of outright exchanging their BTC for fiat? Sorry but that's irrational in my book...

I will gladly mine LTC and exchge it for BTC... but I guess I need to understand why would anyone want to acquire my LTC in the first place... :)

You need why, here few:

1. LTC is CHEAP!
2. There is lot going on about LTC atm being updated and developed, 10 000 LTC faunds donated for that cause
3. LTCPP paying processor should open any time now
4. Biggest BTC exchange MtGox is going to adopt LTC
5. Merchants starting to accept LTC

You need more or you just try to troll here?

Also mine own opinion ~10 million BTC is not enough for all world treading, also high price, transfer time and fee for BTC is not good for small transactions

Thanks. Not trolling - I just genuinely don't understand why people use BTC to buy LTC, instead of exchanging for fiat.

Your question is (purposely) wrong, you should take away "mined" as every coin is mined and you can buy LTC with $ on BTC-e.
Some traders follow the trend

Also:


and some traders follow the trend. If you hold LTC and believe gox will be a fiasco, it's the best time to convert LTC for BTC, just saying..

Oh man...
The value of LTC can potentially skyrocket really soon.

MtGox is going to adopt LTC.
Some darknet website use LTC as a payment already.
SR is going to adopt LTC.

Why would anyone buy bitcoin in the first place?

Oh, for the profits..

Now I know why.

Same reason why people don't just exchange all their BTC to Fiat when they aren't using it.

And let's set this straight, LTC and BTC have no inherent value. Their value is dictated by an exchange based on supply and demand. Grain has inherent value as it sustains life.

"Why would anyone use BTC to buy LTC?"
The answer is very simple. In mid jun. I've bought LTC for 0.0212 BTC each, today I've sold some for 0.0304 BTC each. Now I'm going to "use BTC to buy" some cheap "crapcoins" too :). I hope this answered your question.

OK so speculation it is then.

The same reason people use Fiat to buy BTC is the same reason people use BTC or Fait to buy LTC.  There are many vendors starting to accept LTC.

And let's face it.  If your really going to base value on the amount of places that accept your currency, then BTC and every other Cryptocurrency are totally worthless, as 99.99999% of places don't accept anything but fiat.  It would be good for everyone using Cryptocoins to get on the same page.  It's Crypto (tiny) vs Fiat (HUGE).  We don't need to be thinking any cryptocurrency is better then the other until 1 or a few are globally accepted as a type of currency.  Next we will have Paypal customers jumping on these forums saying "Why would you buy crypto crap when Paypal is accepted everywhere??"

I personally prefer alt-coins, but I am hoping BTC actually takes off and is accepted as a global currency.  I don't wish for it's fall, or for any alt-coins to take over as the dominant coin.   Not sure why others can't do the same.

well said!! :)