You heard of bitcoin, block chain system, cryptocurrency, digital currency, and now litecoin. What is litecoin? It is a clone of bitcoin but it is made by Charlie Lee to be the silver to bitcoin’s gold. Litecoin was released on Oc0tber 7th 2011 on GitHub. It is the second digital currency ever released.
What is litecoin in terms of mining? It is running on a different set of “hash function” than bitcoin’s SHA-256. This one uses Scrypt in its proof-of-work algorithm or verification system. Because of this, it is also harder for miners to create mining devices and more expensive to mine than bitcoin.
This also spells that litecoin is a more stable currency than bitcoin due to stability in the system. Recently litecoin has seen a spike in value and this trend might continue to mid or late 2018.
What is litecoin in terms of algorithm speed? The network targets to process a block every 2.5 minutes, rather than bitcoin’s 10 minutes. The developers claim that this lets Litecoin to have faster transaction confirmation and consequently faster trades as well.
The supply limit is capped at 84,000,000 litecoins and bitcoin only has 21,000,000.
Litecoin is also a bit safer than bitcoin due to the time and effort developers give in the system. This makes litecoin immune to a few bugs and attacks that bitcoin might get.
What is litecoin in terms of trading? Trade and exchange of litecoins has been easier in recent times due to bitcoins rise of popularity and better access to the internet especially in developing countries where it is sometimes easier to get cryptocurrencies than legal fiat currency.
Using cryptocurrencies in general is free to send to other wallets and costs little exchange to any fiat money available in online and physical currency exchangers, if they accept cryptocurrency. This makes litecoin and bitcoin a favourite of those who are in one country sending money back home or to friends in another county.
It is a great daily transactional cryptocurrency due to stable values and while you might want to store bitcoin and spend it when the value rises. Litecoin is a good backup other than bitcoin, Ethereum, and Ripple.
There are also online shops and services now where you can directly buy with litecoin, listed here: LitecoinMarkets
The rise of litecoin as a silver to bitcoins gold, has given the digital currency a recent favourite of investors. A well calculated litecoin investment can make someone rich quickly or in some cases faster than bitcoin.