The launch of Bitcoin did not only usher cryptocurrencies into our world, but it also birthed other digital assets. This is not new to any global market, as predecessors are always known to be followed up by successors. The same applies to Bitcoin- the leading cryptocurrency, which many other cryptocurrencies have followed. Cryptocurrencies have become a huge part of the world’s ecosystem, and the status quo will not change anytime soon. However, while there have been many cryptocurrencies, Litecoin is credited as one of the first successors of Bitcoin.
What Is Litecoin (LTC)?
Litecoin is a cryptocurrency created by former Google engineer- Charlie Lee in 2011. It is credited as one of the first leading successors of Bitcoin and the first altcoin to be invented. It is a peer-to-peer (P2P) virtual currency whose network offers instant, near-zero cost payments that can be utilized globally. The cryptocurrency is also based on an open-source global payment network that is decentralized. According to researchers, Litecoin was created from Bitcoin’s original open-source code. When Lee created it, he announced it as Bitcoin Lite and remained viewed by many as a reaction to Bitcoin. Due to the cryptocurrency imitating the prototype of Bitcoin, it still possesses huge features as the leading digital asset.
How Does Litecoin Work?
Like Bitcoin, Litecoin is not issued by the government and is not regulated by any central bank or authority. The altcoin is also created by mining, a process that is synonymous with Bitcoin and a few other cryptocurrencies. Despite being viewed as a photocopy of Bitcoin, Litecoin developers have incorporated updates distinguishing the altcoins. For example, the Litecoin network generates a new block every 150 seconds.
The block is then verified by mining software and visible to all miners who want to see it. Once any miner verifies this block, it enters the chain and is recorded as a transaction. The first miner who successfully verifies a block is rewarded with 12.5 Litecoin. This reward goes lower with time. Despite being similar to Bitcoin’s, this procedure is not the same in totality. Litecoin, like other cryptocurrencies, also uses the proof-of-work (PoW) mechanism to secure its network.
Litecoin vs. Bitcoin – How They Work?
Litecoin and Bitcoin are both cryptocurrencies and possess similar traits. However, it is impossible to ignore a few differences despite the similarities. Despite running on the same algorithm as Bitcoin, they use different PoW hashing algorithms. While Litecoin uses the simpler Scrypt PoW, Bitcoin utilizes the complex SHA-256 PoW mechanism. It is also worthy to note that the Litecoin network is faster than Bitcoin.
One of the goals of Litecoin was to topple the transaction speed of Bitcoin, a feature it has achieved. This is evident as Litecoin’s 2.5 mins transaction completion time is ecstatic compared to Bitcoin’s 9minutes. Alternatively, due to its shorter block generation time than Bitcoin, Litecoin can handle more transactions. However, while the speed of Bitcoin dwarfs that of many other cryptocurrencies, it is far below that of Litecoin.
Litecoin vs. Bitcoin- Market Value
While it appears that the speed of the Litecoin network dwarfs that of Bitcoin, their market value tells a different story. Since its inception 12years ago, Bitcoin has remained the most valuable cryptocurrency globally. As of today, the market capitalization of Bitcoin is more than $1 trillion, while Litecoin is a mere $11.9 billion. The token price also shows that Bitcoin has been superior to Litecoin. The All-time high (ATH) of Bitcoin is around $65K, with Litecoin’s highest ally pegged at $412. Despite the volatility and the fall in the price of crypto tokens, Bitcoin currently trades at a higher price than Litecoin.
According to data, Bitcoin ranks as the number one cryptocurrency, with Litecoin in 14th position. The difference in the prices doesn’t only depict their value but also talks about their demands. Despite volatility, crypto newbies and investors have shown a strong affinity to Bitcoin, compared to Litecoin. Like many cryptocurrencies, Bitcoin and Litecoin can now be spent like fiat money, as many retail outlets accept them for payments. However, it is also worthy to note that the total supply of Litecoin is higher than that of Bitcoin tokens. While Bitcoin tokens are about 21 million in circulation, Litecoin’s total fixed supply is 84 million coins.
How To Buy Litecoin LTC
Litecoin is currently listed on almost all the crypto exchanges globally. This is because it is one of the oldest tokens and remains high in demand. Should you want to buy Litecoin, exchanges like Binance, Coinbase, Kraken, and Kucoin have the token listed. However, listed below are the five steps to buy Litecoin on Kraken;
- To buy LTC on Kraken, you would be required to visit its website- www.kraken.com, from any internet-enabled device.
- Upon visit, you will be expected to log in or create an account if you do not have one. To create an account, you would provide an email address, choose a username, and pick a strong secured password.
- Like many crypto exchanges, you will be expected to complete the verification process on Kraken. To complete this stress-free process, you will use information like name, date of birth, country, and phone number.
- Deposit cash or cryptocurrency, which will be sufficient to purchase your LTC or its equivalent.
- Search for LTC, and make your purchase
Is Litecoin Still Worth It In 2022?
The hype surrounding Litecoin was high when it was created in 2011 and was sold in 2013 for around $4.30. In the same year, Bitcoin saw its price rise from a paltry $13 to about $1,100. Such expectations were expected of LTC, but unfortunately, it has not lived up to the hype. Apart from hitting an all-time low of $1.15 in 2015, many still perceive Litecoin as a stable digital asset. Around May last year, LTC hit its ATH of $410. a feat which it is predicted to thwart this year. Unfortunately, the cryptocurrency has fallen from those highs and trades at about $120 today.
However, whether LTC is still worth it this year remains unanswerable. This is because there is a current fall in the prices of assets in the crypto market, and the token is currently not spared. However, considering the bull run of 2021, which saw it hit ATH, 2022 might be another remarkable year for it. Crypto analysts also believe that the upgrade of the Litecoin infrastructure slated for this year may positively impact the token. However, by how prices are currently at the strong support price of around $105, a reversal might be in place.
Conclusion
Litecoin was created by Charlie Lee in 2011 and was dubbed “Bitcoin Lite” due to many similarities in their infrastructure. However, despite these similarities, it has failed to live up to the hype. Despite being faster than the Bitcoin network, its market value is nothing to compare. The altcoin reached its ATH high last year and has fallen by more than 65%. Investors looking to put money on Litecoin should be careful, as it is currently a high-risk investment.
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