While some of the more severe crypto hobbyists may be a bit more versed in a few of the more than 1500 altcoins that have entered the crypto space largely over the last year, most altcoins are somewhat mysterious to the average crypto user.
However, there are a few altcoins that have consistently proved themselves valuable enough to make their way into the mainstream. Litecoin, created by Charlie Lee in 2011, is considered by many to be a significant competitor to Bitcoin. Though it does not have the same pop-cultural influence that Bitcoin has, Litecoin's technology makes it more suited to function a series of functions the Bitcoin network has continuously struggled with.
Let's take a peek at exactly what Litecoin is and what it could offer the typical user.
Lіtесоіn (LTC) is a peer-to-peer сrурtосurrеnсу and open ѕоurсе software project which was released under MIT/X11 lісеnѕеѕ. Crеаtіоn and transfer of соіnѕ іѕ bаѕеd on a ореn-source сrурtо рrоtосоl and іѕ entirely decentralized.
In most of the respects, Litecoin is quite similar to Bitcoin. But many argue that it is much more suited to everyday purchases than the Bitcoin network is a result of its faster transaction times and lower fees. Transactions on the Litecoin network can be as much as 4x quicker than transactions on the Bitcoin network.
Not everyone believes that the Bitcoin-Litecoin dynamic has to become an 'either/or' scenario; Litecoin's creator foresees a future where the two currencies will work in tandem together.
At press time, one Litecoin was worth roughly $130, and Litecoin Trading was flourishing. Litecoin's peak market cap has been reached at December 2017, where it was worth around $20 billion.
From the beginning of the year, Litecoin (like most cryptocurrencies) has suffered a downturn, although in the previous month there has been some growth and it seems the coin is making a recovery.
By most accounts, Litecoin's growth over the past year has been shocking. Throughout 2017, Litecoin's cost increased by an Incredible 7,291 percentage while compared, Bitcoin's cost increased by 1,731 percent in Precisely the Same period.
History and Around
It's interesting that while Bitcoin founder Satoshi Nakamoto's true identity is kept secret and mysterious, Litecoin's founder Charlie Lee is extremely active on social media in addition to his private site. Lee previously worked as a software engineer at Google, where he came up with the notion of a much lighter and quicker variant of Bitcoin. Having graduated from MIT, Lee spent decades acquiring expertise at different significant technology companies before leaving Google in 2013.
Lee spoke about his recent decision to sell his Litecoins. He stated, "I always realized that there was some conflict of interest in which functioning in order to rise the purchase price of Litecoin may not be the optimal solution for the long-term adoption of Litecoin." He intends to focus on creating and the technology to make it even more successful without needing to worry about constantly increasing the price for his own profit.
Litecoin was not the first attempt at Cryptocurrency by Charlie Lee. In 2011, he attempted to launch Fairbix that was far from a victory. It was plagued by numerous technical issues from the beginning, in addition to the fact that its source code was almost identical to that of Tenebrix. This venture produced Lee return to the drawing board and develop a more effective cryptocurrency. Thus, Litecoin was first born.
Factors Which Impact the Purchase Price of Litecoin
Cost of Bitcoin
Among the factors that ultimately affects Litecoin and other cryptocurrencies is the price of Bitcoin. If Bitcoin is performing well, the marketplace will respond well and other currencies usually find a rise too. On account of the reality that Bitcoin is finally the very popular and highly effective cryptocurrency, markets often move in tandem with its own ups and downs.
It is worth noting that Bitcoin price affects Litecoin only in certain respects, provided that ultimately distinct sources of information could have different levels of impact on a particular currency.
Buyer’s Understanding about the Currency
As more individuals join from the crypto craze through Bitcoin through websites such as Coinbase, it gets much more evident for users how Litecoin's rate and lower fees are more beneficial.
When users are taking into account a service like Changelly, which lets users convert numerous altcoins directly into other altcoins (instead of needing to exchange for BTC or even ETH then into the desired cryptocurrency.) LTC offers a distinctive advantage with its rate and reduced fees, and its wide availability makes it a particularly attractive option.
Legislation and regulations from government policy have a substantial influence on digital currencies. Despite having their own private financial policy, Litecoin cost is still affected by government policies which regulate it and stop it in certain ways.
Supply and Demand
Ultimately like everything in the economic model, cryptocurrencies are bound by the forces of supply and demand. What influences Litecoin prices mostly is the interaction of those forces.
This economic factor has been a major driver to induce growth in this protocol advantage. The demand for Litecoin has dramatically increased over 2017 which led the digital asset's cost to over $60 past August. Out of the 84 million supply of Litecoin, more than 50 million are already mined, which means that prices can be expected to increase further as distribution grows more and more scarce. It appears like Litecoin may have a bright future ahead.