The fourth largest cryptocurrency, with a market capitalisation of $5,139,805,529 as at the 25th of March 2019, Litecoin was one of the earliest cryptocurrencies to hit the market.
Created as a ‘fork’ to Bitcoin, or a currency to provide a solution for a shortcoming in the technology provided by Bitcoin, the coin is faster in terms of transaction speed and uses a different consensus mechanism for verification and security purposes.
Developed by Charlie Lee, who formerly worked at Google, Litecoin was launched a mere 2 years after Bitcoin, however, had much lower transaction fees and was processed four times faster than Bitcoin was able to provide.
Initially created as the ‘The Digital Silver’ to Bitcoins ‘Digital Gold’, “Litecoin has full support from the industry as the most effective medium of exchange in digital currencies, thanks to its liquidity and general trade volume”.
Its key features include faster processes and confirmation time, providing comfort to users and being able to easily facilitate transactions.
A large number of coins in circulation means there is less competition for mining and greater profit margins available. Litecoin can be purchased using other digital currencies, not just USD or cash making it extremely flexible. Finally, the script algorithm that is used provides significant security benefits for investors.
Unlike Bitcoin, who’s founder Satoshi Nakamoto is very much ‘cloak and daggers’ with his identity very much surrounded in mystery and intrigue. Litecoin’s’ creator, Charlie Lee is a very active member of the cryptocurrency community, as well as social media, blogs events and forums.
This provides developers, investors and the market with a real sense of transparency, accountability and security in the knowledge that a creator is a real person, and they are trying to take the currency to the next level.
Like many things he does, rather than leaving it for others to speculate, the founder and creator of Litecoin, Charlie Lee shared this insight in an interview with CryptoInsider.com on the future of the currency.
“Basically, Litecoin is currently a very speculative currency, that’s why a lot of people keep their coin on exchanges than Coinbase, because they are being traded back and forth, and that’s good for liquidity, but we need to move towards more utility, more people are actually spending the coin, having more merchants accepted, having more places to spend your coins, I think that’s what will take us to the next level, so to speak. I am definitely pushing for adoption wherever I can, and I am very excited to see others are also”.
The fact that over 50% of all cryptocurrencies – including Litecoin – are being held as an ‘investment’ rather than used as a currency, means for Litecoin and all other peer-to-peer currencies to be successful, mainstream adoption and use in a transactional situation, not speculative, is the key.
For the full breakdown on Cryptocurrency check out our article: Cryptocurrency – The rise, fall and future
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