What is Litecoin?

Litecoin is the 4th Largest Cryptocurrency

Litecoin has risen 5800% in 2017 but not many people know about it. Based on market cap, Litecoin currently stands 4th behind Bitcoin, Bitcoin Cash, and Ethereum. Like Bitcoin, it is a cryptocurrency that can be generated by mining and used for transactions. As the second most mined cryptocurrency after Bitcoin, it is considered the ‘silver’ of cryptocurrencies after Bitcoin (the ‘gold’). Here are the facts about Litecoin:

Table of Contents

1. Creator of Litecoin
2. Bitcoin vs Litecoin
3. The Rise of Litecoin

Innovative Creator of Litecoin

Litecoin was created by a Google developer and former Coinbase engineer named Charlie Lee. Charlie envisioned Litecoin as a faster version of Bitcoin and Litecoin will process transactions at a faster pace then Bitcoin. Litecoin was launched in 2011 and has made itself the 2nd most mined coin after Bitcoin and labeled the ‘silver’ of the cryptocurrency world.

The motivation for the creation of Litecoin was to improve the speed of the creation and transaction speed. The key difference for end-users is Litecoin takes 2.5 minutes generate a block opposed to Bitcoin’s longer 10 minutes. In addition, Litecoin has a faster transaction time. This includes a higher volume of transactions can be done in less time. As quoted by Investopedia:

‘While this matters little to traders, miners who use hardware to run Bitcoin’s network cannot switch over to Litecoin. This keeps bigger mining conglomerates away from Litecoin because they cannot easily optimize their profits by swapping to another coin, contributing to a more decentralized experience. Litecoin also has bigger blocks, and more coins in circulation, making it more affordable and swift when transacting.’

Charles Lee has now become famous and is active on his twitter feed and on media in coverage of cryptocurrencies and Litecoin.

Bitcoin vs Litecoin

Both coins are mined coins and use a block to generate coins and complete transactions. The differences are key:

 COIN

Bitcoin

Litecoin

Coin limit

21 Million

84 Million

Algorithm

SHA-256

Scrypt

Mean block time

10 minutes

2.5 minutes

Difficulty retarget

2016 block

2016 blocks

Block reward details

Halved every 210,000 blocks.

Halved every 840,000 blocks

Initial reward

50 BTC

50 LTC

Current block reward

25 BTC

50 LTC

Block explorer

blockchain.info

block-explorer.com

Created by

Satoshi Nakamoto

Charles Lee

Creation date

January 3rd, 2009

October 7th, 2011

Market cap

$10,467,596,650.78

$540,274,528.26

The main takeaway is that Litecon is faster to create coins and handle a lot more transactions.

The Rise of Litecoin

As of Dec 2017, Litecoin has risen from $4 in the beginning of 2017 to a record high of $250 per coin. This is an increase of 5800% has made Litecoin and owners of Litecoin very rich. Part of this is due to the dynamic rise of Bitcoin which has spread the news of cryptocurrencies to all including alternative coins like Litecoin.

Also since Litecoin is very similar to Bitcoin but cheaper, some of the rises in Litecoin pricing may be due to the rapid rise of Bitcoin, which has made the price to high for some. They now turn to alternative coins like Litecoin to see more benefits and more return on investment in the long run.

Transaction-wise, Litecoin also fulfills the promises of cryptocurrency much better then Bitcoin currency. With Bitcoin being at $15,000 per coin, its very hard to use it for transactions. Litecoin by being cheaper and faster to use can be better used for digital purchases then its bigger brother.

As we head into 2018, the future is looking very bright for Litecoin as both as a transactional currency and also as an investment vehicle. To buy some Litecoin, go to Coinbase and create a wallet.

Follow these steps to buy Bitcoin to also buy Litecoin.

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