Litecoin is open source peer-to-peer software released and licensed by MIT/X11. The production of litecoin is made with the same technicality of bitcoin and it is not controlled by any government, financial authority or entity which made it a decentralized cryptocurrency. The litecoin is also the 3rd most popular cryptocurrency in the world according to market capitalization with bitcoin being the 1st and Ethereal being the second. The release of litecoin was through an open-source client on October 7, 2011 on GitHub. Also, litecoin is not backed in real assets like precious metals such as gold and others. However the value is by the market factors of demand and supply.
The Reason for Development of Litecoin
Bitcoin was the first decentralized cryptocurrency developed and released into the digital financial world. But due to lots of perceived shortcomings associated with bitcoin there was need for development of alternative coins. That is what brought about development of litecoin and other altcoins. The litecoin was developed to be lightweight and also in higher quantity than bitcoin. To make litecoin impermeable and more protected from ASIC mining, scryps are used as a proof of the algorithms.
The Growth of Litecoin in the World Today
Considering other altcoins in the digital world, litecoin have highest growth rate. It was developed some years after bitcoin was introduced into the market but there are already 84 million litecoins in circulation. This quantity of litecoin is already generating components of block code each 2.5 minutes. Comparing litecoin with bitcoin, it is growing with faster speed which made it the third most popular alternative coins in circulation today. However, the value is lower than bitcoin notwithstanding the fact that bitcoin quantity is less. Also, for you to mine litecoin you must start by creating a bitcoin account and the rate of litecoin to bitcoin is 146 to 1.
The Advantages of Litecoin over Bitcoin
There are lots of advantages associated with litecoin when compared with other alternative coins in the market. The major advantage of litecoin when compared with bitcoin is that it has higher block generation speed. For that reason, transaction with litecoin is faster than with bitcoin. More so, you will enjoy more efficient peer-to-peer digital financial transaction with litecoin than bitcoin. Another advantage of litecoin is that it carries lesser transaction fee which is 1/1000.
Points To Consider Note before Buying Litecoin
There are lots of things you need to consider before going ahead to mind or transact with litecoin. Some of these include:
- Following the upsurge of bitcoin price in November, 2013 speculators now focus mainly on litecoin. For that reason, it is possible that price of bitcoin and litecoin can go parallel to each other but the price of bitcoin is far more than litecoin.
- Those already trading on bitcoin do not always have problem trading with litecoin. But novice will likely find it difficult to adapt.
- The alternative ways to gain litecoin is to follow standard way to mine it.
- Ensure you research properly before going ahead to invest huge amount of money on litecoin and avoid putting in the amount you will not be able to bear the loss.