Cryptocurrencies have taken the financial world by storm, there no question about that. But other than bitcoin that was on everyone’s lips in 2017, there are other coins that have actually outperformed it by a large margin! One of them is Litecoin (LTC). Many people entering the cryptocurrency space have very little understanding of Litecoin, even though it is functionally better than bitcoin.
So what is Litecoin (LTC)?
Litecoin is a cryptocurrency created in 2013 by Charles Lee, an ex-Google employee. It is an improvement on Satoshi Nakamoto bitcoin idea. The success of coin can be linked to the fact that it is designed to attract bitcoin miners. This intricate relationship between the two might lead to the question, how is LTC different from BTC?
The difference between bitcoin and Litecoin
The main difference between these two cryptocurrencies is in transaction speeds. Litecoin is way faster than bitcoin. The speed difference between the two emanates from their block sizes. LTC has bigger block sizes which allows it to handle a higher number of transactions and at a higher speed.
The two also differ on the number of coins in circulation. Unlike bitcoin that has only 21 million coins in circulation, Litecoin has 84 million.
However, the most fundamental difference between the two is in their mining algorithms. Litecoin is mined using the Scrypt algorithm, while Bitcoin is mined using the SHA256 algorithm. Bitcoin’s SHA26 algorithm is way harder than Scrypt, which makes mining Litecoin easier and more cost effective than mining Bitcoin.
Litecoin (LTC) price analysis
LTC started the year on a promising note, hitting $312 in the first week of January. However, like most other cryptocurrencies, Coin’s price has been affected by the negative news that have hit the cryptomarket recently, such as the recent crackdown on exchanges by South Korea. Nevertheless, it seems to be recovering. Currently, Litecoin is trading at $224, which is a positive price move keeping the challenges faced by the markets.
Is LTC a worthy buy?
There are a few things you need to understand before you invest in Litecoin. The first one is that its key selling points are increasingly being overtaken by rivals. For instance, in the long term, Ripple is more likely to be the favorite of many people. That’s because it has way higher transaction speeds, and is also cheaper. Such competitors could make Litecoin drop in attractiveness in the long run, and see a decline in its value.
On top of that, for Litecoin to be used as money, it has to have a wider adoption than it currently has. LTC has 267,000 wallet addresses. This is a very small number when compared to other cryptos that are contending to be adopted by the masses as currency. For instance, Ethereum, one of the cryptos also on the race for mass adoption has 886,000 wallet addresses, a figure that puts it pretty much ahead of its on the currency front. This could negatively affect coin’s price in the long run.
However, there is no question that Litecoin (LTC) will continue to hold its position as one of the most important cryptocurrencies in the market. The decision to invest or not to invest in it, should be based on due diligence.