How The Silver Coin is Making Its Mark
If you are new to the cryptocurrency world and are trying to make sense of different cryptocurrencies, you would want to know about other altcoins in addition to Bitcoin. While Bitcoins have the biggest market share and are considered for most cryptocurrency transactions, Litecoins come in fourth in terms of market cap after Ethereum and Ripple.
Created by former Google employee Charlie Lee, Litecoins were always designed to be the silver to Bitcoin’s Gold. While silver will never be priced as much as Gold in the world, it will always maintain a steady growth and constant demand due to its utility as a currency as opposed to Gold (bitcoin), which is often over inflated and there just isn’t enough liquidity.
The current price of a Litecoin is GBP 28.00 and the market cap is close to GBP 1.5 billion. It is a remarkable improvement just like other cryptocurrencies when you realize how much Litecoin has gained over the years. It was worth around GBP 2.30 back in 2014 and though the price fluctuated a lot in between, now it seems to be setting towards a steady GBP 22 – GBP 40 mark.
But what are the similarities between bitcoin and litecoin that often lead to an association in their price and trade volume?
Technically, Litecoin is very identical to the way bitcoin operates. It is a peer-to-peer cryptocurrency that is operated on an open-source cryptographic protocol and is not controlled by any central authority. Litecoins are also mined into existence (though much easier to do so than Bitcoins).
So, in many ways it is identical to Bitcoin but there are many improvements in place that make it faster and more efficient than the latter. They include the use of segregated witness system and the Lightning Network. It helps reduce the processing time of a Litecoin block and it is in many ways an improvement over Bitcoin. An average Bitcoin transaction takes up to ten minutes to be confirmed while Litecoin being 4 times faster only takes 2.5 minutes. There is also much less computing work needed per block than Bitcoin and the mining as mentioned earlier is much easier and smoother.
Overall, Litecoin network will issue around 84 million coins which is four times the number Bitcoin network is designed to issue. This is a classic case of being Silver to Gold strategy. It will result in more liquidity and help new entrants into the market for some time at least. But, many traders consider Litecoin to be a nuisance coin that has only managed to succeed by piggybacking Bitcoin’s success. If for some reason Bitcoin collapses, Litecoin will collapse as well. Both currencies often show similar behaviors in the cryptocurrency trading circles as well. While associating with Bitcoin and offering upgrades and improvements has helped Litecoin succeed, the debate remains whether a non-unique altcoin can sustain its growth over larger period of time.
But, Litecoin with its free transaction and better processing system might just be able to survive on its own. With news emerging that Litecoin creator Charlie Lee getting back into the Litecoin fold permanently, there is growing optimism that Litecoin will be able to do much better in the coming months and years.
Looking to buy Litecoin for investment in the UK?
Give our dedicated Litecoin brokers a call and they will be happy to provide a competitive, custom quote for your next Litecoin order.
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