What is Litecoin (LTC)?
Litecoin is one of the more mainstream cryptocurrencies which most people will have heard about at some point in time. As its name suggests, Litecoin was intended to be a sort of ‘lite’ version of bitcoin. Litecoin is, in fact, a direct reaction to Bitcoin, and Litecoin shares many of the same fundamental features and qualities as Bitcoins with both being units of account and intended for use as digital alternatives to existing currency. There are a number of differences, however, between the two which do provide Litecoin with possible advantages in the future.
- Price $89.43
- Market Cap
What is Unique About Litecoin (LTC)?
Number of Coins
One of the big advantages, at least psychologically speaking, that Litecoin possesses is its vastly higher number of total coins: 84 million in comparison to Bitcoin’s 23 million. The advantage of this difference is largely psychological as most users prefer to trade in larger quantities of a coin than in smaller ones. There is very little practical difference made by this difference in a number of coins other than the psychological effects it has though.
One of the big advantages that Litecoin has, which genuinely distinguishes it from Bitcoin, is that it has vastly superior transaction speeds. Litecoin transactions can take place markedly faster than Bitcoin ones which makes it one of the faster tradeable currencies in the market. This is a significant advantage for Litecoin since it means that it could be preferred for use by consumers and merchants for commercial purposes so the currency has a lot of potential for being used in commercial applications.
Litecoin uses a more advanced cryptographic algorithm than currencies such as Bitcoin, known as the Scrypt system which is a much newer algorithm than the SHA-256 algorithm employed by Bitcoin for example.
Why Should I Invest in Litecoin (LTC)?
Litecoin is intended to be a smaller, but more easily transactional version of Bitcoin, so it does not have a lot of special features or great distinguishing characteristics apart from the fact that it has superior transaction speed, a greater number of total coins in distribution as well as a more advanced cryptographic algorithm. This puts many people since it seems that there just aren’t enough viable aspects of Litecoin to make it a good investment.
And, it is not wrong to speculate that it is probably very unlikely that Litecoin could become a major part of the future’s cryptocurrency market as many different, more specialised, and individually differentiated currencies, are currently being taken note of. Nevertheless, there is a strong case to be made that Litecoin is very likely to remain a relatively stable and safe investment to make in the future due to the fact that it has a very stable history and the fact that it has superior transaction timing and a greater number of coins lends to there being possible room for it to grow. Overall, it would be unwise to expect a great return from investing in Litecoin, but it is still likely that you will experience some return as long as the overall market stays afloat.