The decision to write a review on Litecoin came up because it is one of the steadily growing coins in the market to date. We cannot forget that LiteCoin has tripled in value in a time span of six months. This has made investors pay closer attention towards the LTC in recent time.
The founder, Charlie Lee. launched the coin on GitHub in October 2011, with the purpose being to reduce the transaction costs and speed up the blockchain transaction process. With an average block time of 2.5 seconds, Litecoin facilitates one of the fastest transactions in the cryptocurrency Market.
Being a coin very similar to Bitcoin, LiteCoin, instead of going against Bitcoin, decided to go parallel with it.
Why LiteCoin ?
Litecoin is a P2P decentralized digital cryptocurrency. In layman terms, you can say it can be used to buy anything ranging from a sandwich to online purchases. But still the question remains, why Litecoin when you can use your standard government issued fiat currencies?
The answer lies in the transaction fees of Litecoin. The transaction fees you pay when using Litecoin is a fraction of what you need to pay the bank when you use a Credit Card, Debit Card, or Online transfers.
LiteCoin vs Bitcoin
Litecoin, just like Bitcoin, is generated and supplied in the virtual market. The fact that the number of LTC supplied in the market is 84 million (nearly 4x of that of Bitcoin), defeats the latter here as less number of tokens are the main reason of price upsurge of Bitcoins.
Litecoin is also better than Bitcoin when it comes to transaction speed.
Noting Down 4 main points where Litecoin is better than Bitcoin:
1) Bitcoin network processes a Block every 10 minutes, Litecoin does it in 2.5 seconds.
2) Supply of LTC is much more than BTC
3) Bitcoin uses POW algorithm, and Litecoin uses SCRYPT, the latter is supposed to be slightly better.
Experts say it is an improvised version of Bitcoin.
Summarizing why Litecoin is better, we would say Litecoin holds more value as it has a larger supply of tokens than Bitcoin, so eventually LTC will become as big as bitcoin, when the investor base expands. And more importantly, it can be sent anywhere across the globe quite instantaneously, at significantly lower fees than Bitcoin.
Is Litecoin a good investment ?
The coin was stable even during the peak of Bitcoin and seems to have potential to go beyond its competitor’s levels. As far as the investment and revenue is concerned, it has been a good investment till date. The graph has steadily increased, and it can be predicted that it will give good returns in the coming future. Investors shouldn’t be looking for a bull run scenario in this case though, as the history says, it has been climbing steadily. The key to seeing some proper profit with LTC, is to have some patience.
Litecoin in 5 points:
1) A cheaper mode of payment.
2) Limited number of coins: 84 Million (nearly 4x of Bitcoin)
3) Significantly faster transactions.
4) Currently #5 as per the market cap.
5) Uses SCRYPT technology