Trading volumes in China in dollars. LTC: 120 million USD. BTC: 60 million USD

[canadian_bitcoin]

https://litecointalk.org/index.php?topic=8635.0

OKCoin - LTC/CNY - 4+ million of LTC coins traded. => 120+ million USD.

BTCChina - 60k+ BTC coins traded. => 60+ million USD.


Why is BTC losing ground in China?

[Barek]

Most (all?) exchanges take not fee in China, which makes transaction volume a poor indicator for interest.

Litecoin is highly speculative. I would not be surprised if people use it as a form of gambling.

With Bitcoin there is a long term expectation and a good number of buyers will be investors that buy once and then plan to hold for a while.

[canadian_bitcoin]

so? BTC exchange also has no fees.

Who's to say LTC won't snowball this way and gain critical mass?

This amounts to dilution of 21 million coins.

[Barek]

All I'm saying is that users have no benefit of using both BTC and LTC. The only ones profiting would be exchangers.

Time will tell if it's going to be BTC or LTC (or some other virtual currency).

[LiteCoinGuy]

because its the silver of the crypto world and chinese people like silver. in the long term it should be 25 % of BTC.

i guess in the long run we will see BTC and LTC.

[Melbustus]

...in the long term it should be 25 % of BTC.

If there were no such phenomena as network effects & 1st mover advantages, sure. It'd be worth 1/4 of bitcoin, in a constantly diluting pool of crypto-currencies, as each new one comes online to claim a slice of the pie.

But that's not how it works. Bitcoin should continue to enjoy a valuation at least an order of magnitude more than that 1/4 analysis suggests, due to the network effects it enjoys; ie, it benefits both the existing users as well as each new entrant, for each new entrant to primarily use bitcoin as opposed to an alt with far far less usage (unless there are huge feature/technical advantages to a given alt). That's not say litecoin will have zero value, but please realize that the real-world relative valuation doesn't come purely from the 4:1 supply ratio.