Litecoin Creator Charlie Lee: “on-Chain Bitcoin and Litecoin Payments Are Not Peer-to-Peer”

  • In a recent tweetstorm, litecoin (LTC) creator Charlie Lee explained why standard bitcoin (BTC) and LTC payments are not truly peer-to-peer.
  • This discussion started after a heated debate with bitcoin cash supporter, Roger Ver.

While aboard the recent Coinsbank Blockchain Cruise, hosted from September 7-11, 2018 on the Mediterranean Sea, litecoin (LTC) creator Charlie Lee sat down and had a heated discussion with bitcoin cash (BCH) supporter Roger Ver.

During their talk, Ver made the bold claim that bitcoin can no longer be used as peer-to-peer (P2P) digital cash. Charlie responded by putting forward that bitcoin is not actually peer-to-peer.

Roger seemed shocked by Charlie’s statement. Bitcoin is often described “A Peer-to-Peer Electronic Cash System,” the headline of the Bitcoin whitepaper authored by its pseudonymous creator Satoshi Nakamoto.

To back up his claim, Charlie explained that on-chain transactions are not actually peer-to-pee as instead, the “payments are sent from sender to miners, who record it on a distributed ledger.”

He argued that while the network is P2P, “strictly speaking” payments aren’t as the sender can ignore the network and “directly communicate the transaction to miners to send payments,” which per Lee is a good thing as the receiver won’t have to be online to receive the funds.

From there, he illustrates how Lightning Network (LN) transactions are actually more peer-to-peer than on-chain transactions, because there are no middlemen, transactions are truly kept between the users.

Although transactions can be routed through different nodes, LN transactions are built by the sender and receiver in a peer-to-peer fashion. To expand on his claims, Charlie went to Twitter to further explain. Charlie’s tweets can be read here. In the end, he concluded LN payments are Satoshi’s true vision.

The first part of the debate between Roger and Charlie can be watched on YouTube.

Lighting Up Lightning

Many in the cryptocurrency space, especially Roger Ver, do not believe in the future of the Lightning Network. They claim that it’s inefficient, that it’s possible to censor transactions, and could even be liable to money transmitting laws.

During the discussion, Charlie clears the air regarding the Lightning Network, and helps shed some light on why he believes it’ll be successful. Despite launching earlier this year, Lightning usage is still extremely small. The wallets and software are still in development, and are not yet user-friendly.

However, Lightning progress has been coming along rapidly. Since SegWit launched one year ago, the Lightning team has been hard at work building the infrastructure needed for this layer two solution.

BTC Now Below $8300, but Tom Lee Says ‘2020 Should Be Great for Bitcoin’

Siamak Masnavi

On Thursday (January 23), Thomas Lee, Co-Founder, Managing Partner, and the Head of Research at independent research boutique Fundstrat Global Advisors, while appearing as a guest on CNBC's post-market show "Fast Money", predicted that "2020 Should Be Great for Bitcoin" and explained why.

According to data from CryptoCompare, at press time (around 10:20 UTC on January 24), Bitcoin is trading at $8,273:

BTC-USD 24 Hour Chart on 24 Jan 2020.png

This is the first time that Bitcoin has traded below the $8,300 level since January 14, as you can see in the two-week BTC-USD price chart shown below:

BTC-USD 2 Week Chart on 24 Jan 2020.png

Since Bitcoin reached $9,151 at 01:00 (UTC) last Sunday (January 19), the BTC price has been steadily falling, perhaps in anticipation of the "traditional" slowdown in Bitcoin trading around the time of the Chinese New Year (which, this year, starts on 25 January 2020 and ends on 11 February 2021). This expected drop in Bitcoin trading volumes was something that Arthur Hayes, Co-Founder and CEO of crypto derivatives exchange BitMEX, predicted in a tweet he sent out yesterday:

However, Lee, does not seem concerned about the currently falling prices of Bitcoin and altcoins in the crypto market.

Lee, who was appearing on Fast Money to give his views on the stock, bond, and crypto markets, was asked by the shows's host, CNBC news anchor Brian Sullivan, if he was still bullish on Bitcoin.

Lee replied:

"Yeah, 2020 should be great for Bitcoin because you got number one the halvening happening -- the block reward for miners getting cut in half -- that's a good supply demand change. I think last year the White House killed the Bitcoin rally with their opposition, but with the presidential election cycle underway, it's not gonna be in the headlines, and that's bullish for Bitcoin. And then with geopolitical tensions in the Middle East, I think that's good for crypto... We're getting a lot more interest in it from our clients."

It is worth remembering that two weeks ago Lee tweeted about a report he had published on January 9 about the outlook for crypto in 2020. According to this report, there are three positive convergences/catalysts for Bitcoin in 2020:

  • Bitcoin halving/halvening (which is expected to take place around 12 May 2020).
  • Geopolitical tensions in the Middle East.
  • 2020 U.S. Presidential Election

Lee said at the time that the bottom line is that "financial markets tend to discount 1-3 months, and maybe 6 months (max)" and therefore the "highest probability is halvening not priced in."