In 2008, Satoshi Nakamoto released his whitepaper for Bitcoin, with the genesis block being mined in January 2009. The creation of Bitcoin was the foundation of the cryptocurrency industry. Since 2009, we have seen numerous projects succeed but also fail. During the entirety of the cryptocurrency market’s existence, Bitcoin has been the largest cryptocurrency by market capitalization. Despite this, many point towards Bitcoin’s issues surrounding transaction speed, PoW, energy usage, etc. Many have created Bitcoin hard forks in an attempt to overthrow Bitcoin from its top spot, typically pointing towards these issues. Every single attempt so far has ended in failure. No Bitcoin hard forks are in the top 15 by market capitalization, many are not even within the top 100. Bitcoin Latinum is the latest attempt at taking the Bitcoin code and trying to make it better. So, is Bitcoin Latinum another Bitcoin code-based cryptocurrency destined for failure? Or does the LTNM have a place among the giants of the cryptocurrency world?
What is Bitcoin Latinum?
Bitcoin was originally intended to be a peer-to-peer (P2P) monetary system. However, the evolution of Bitcoin has seen it shift into a hedge against inflation with the earned title of “digital gold.” Due to slow transaction speeds and high transaction costs, the Bitcoin network cannot be used for small to medium payments.
Bitcoin Latinum effectively shifts Bitcoin from a PoW consensus algorithm to an MPoS one. Theoretically, this makes Bitcoin Latinum (LTNM) fast, cheap to use, and green. Therefore, this allows the original Bitcoin code to be used in the manner it was originally intended to be used in – as a P2P currency. This is enabled through the implementation of new proof-of-stake technology.
How does LTNM vary from BTC?
Bitcoin was created by Satoshi Nakamoto. The true identity of Satoshi continues to be debated upon, as the creator remains anonymous.
LTNM has been built by the Monsoon blockchain cooperation. The organization specializes in the development of blockchain technology, providing development and consultancy services. Unlike Bitcoin, LTNM is transparent in its project development through presenting the cryptocurrency founders.
Whether this personal identification transparency is beneficial or not is down to personal opinion. The anonymity of Satoshi Nakamoto may have significantly contributed to the success of Bitcoin and is therefore beneficial.
Monetary Transfer Security
The primary feature of Bitcoin is the ability to transfer monetary value through a decentralized network, without middlemen and with no central authority. This feature is now relatively common with cryptocurrencies. For example, the same feat can be achieved with Ethereum, Litecoin, Dogecoin, Monero, etc. However, what makes Bitcoin a monetary value transfer that is different is the unparalleled security which it comes with.
Bitcoin NFTs Marketplace
With LNTM having increased transaction speeds alongside decreased transaction costs, Bitcoin Latinum has teamed up with UNICO to provide the first Bitcoin NFTs. However, this is not a feature of LTNM, but rather something that the Bitcoin Latinum team has developed, with LTNM used as a payment option.
Low Transaction Speeds / Costs
LTNM has low transaction speeds and costs. This is enabled through the utilization of a PoS consensus algorithm. The PoS consensus algorithm is common within the cryptocurrency space. Lots of L1s such as Solana, Cardano, Algorand, and Tezos use a PoS algorithm. Despite claims of PoS utilization, staking is currently unavailable with LTNM.
The Low Transaction Speeds and Low Costs are a Projection
The Bitcoin Latinum network has not yet been deployed. This is why LTNM staking is currently unavailable. Bitcoin Latinum claims that LTNM will have a TPS of x>6,000 by the end of 2021. However, with such little data available on the current Bitcoin Latinum network state, comparative analysis against other PoS cryptocurrencies is pointless.
Bitcoin Latinum Risks
Bitcoin Lightning Network
Many have stated that the transaction speeds and costs of Bitcoin are slow. This is certainly true with on-chain monetary transfers. However, the Bitcoin Lightning network is a layer-two payment protocol that allows for Bitcoin micropayments. The success of the Lightning network has subsequently pushed Litecoin out of the top ten cryptocurrencies by market capitalization. Additionally, the user-friendliness of the Bitcoin Lightning network was a primary driver in the adoption of Bitcoin in El Salvador.
Crypto users can also have access to Wrapped Bitcoin now. This is when a Bitcoin token is created on an alternative L1 which is transparently verifiable through a Proof-of-Reserve system. Wrapped Bitcoin is available on multiple L1 blockchains, such as Solana and Ethereum. The wBTC approach allows users to leverage BTC on DeFi protocols with the fees and speed of the L1 in question. Furthermore, this wrapping process would allow for BTC to be used as a payment for NFTs on various marketplaces.
Bitcoin is getting greener
Earlier this year, Bitcoin was considered non-environmentally friendly. The majority of mining operations occurred in China, with over 60% of electricity generated from coal, the dirtiest fossil fuel. However, upon the unprecedented exodus of Chinese mining operations from the country, BTC miners have flocked to other nations that possess increased usage of electricity sources, with decreased pollution. With Bitcoin’s lack of sustainability being one of Bitcoin Latinums’ primary USPs, this is now less of a selling point for the project.
Bitcoin Latinum risks
The Bitcoin Lightning network and wBTC are both major threats to LTNM, somewhat rendering the cryptocurrency pointless. This lack of need for LTNM is demonstrated by the poor price action of LTNM since its inception.
Historical Price Action
LTNM is a new cryptocurrency with a very small price action data set available. The current all-time high of Bitcoin Latinum is $206.20 USD with the all-time low being $90.51 USD.
Based on this analysis, it can be deduced that LTNM is currently facing a harsh reality – that the coin serves little purpose in the current cryptocurrency world. With the Bitcoin Lightning network performing extremely well and Wrapped Bitcoin on high performance L1s possible, the market for LTNM since the idea inception has seemingly evaporated. It is unlikely that LTNM will ever break into the top 250 cryptocurrencies by market capitalization.