Litecoin is yet another name mentioned and traded in the cryptocurrency platform. It has become one of the most invested platforms besides Bitcoin and Ethereum.
Background of Litecoin
Released on an open-source client, Litecoin is the brainchild of former Google employee, Charlie Lee. This was back in 2011 when Litecoin was first introduced on GitHub. In mid October, 2011, Litecoin went live. What Litecoin is really is that it was somewhat similar or in some cases, a part of the Bitcoin Core client. However, it has the following traits:
- lower block generation time
- higher maximum number of coins
- runs on a different hashing algorithm
Highlights of Litecoin
Like other cryptocurrencies, Litecoin has enjoyed tremendous success in many areas. Around November 2013 for example, Litecoin experienced a 100% jump within 24 hours where it reached a market capitalization of US$1 billion that same time. This would then increase to 4-fold some 4 years later. To date, each Litecoin is valued at almost US$375.
Litecoin is the first cryptocurrency to adopt Segregated Witness among the top 5 others rated by market capitalization. So, what really is Litecoin? We identify them below.
What is Litecoin?
To understand Litecoin, you must understand how Bitcoin works. Basically, Litecoin is:
- a peer-to-peer internet currency
- it is able to provide instant and at times almost zero-cost payment for transactions
- a fully decentralized global payment network
- no central authority controlling it
Litecoin a good alternative to Bitcoin
Using mathematical algorithms, helps to secure the network while allowing investors to be in full control of their money. Litecoin helps transactions as it has faster confirmation times. The storage efficiency is a lot better than other cryptocurrencies because of its mathematics-based algorithm. There has been a lot of communities in the internet which has been in full support of Litecoin which include:
- and many others
Running on the MIT/X11 license, users are now able to modify and copy the software if necessary. After all, it is an open-source platform. Some important facts about Litecoin:
- Blockchain – Litecoin has a higher transaction handling as compared to Bitcoin. Merchants who accept Litecoin get quicker confirmation times
- Wallet Encryption – This technology allows the user to secure their wallet while keeping tap of their transactions and balance in the account.
- Mining Reward – If you are interested in mining for Litecoin, you would be happy to know that you will be rewarded for your efforts. In fact, you get 25 new litecoins for every block mined
Litecoin in Malaysia
Plus500 is a popular platform to buy Litecoin in Malaysia. Besides that, there are several other online brokers like Bitmax. Basically, you will need to first buy Bitcoin or Ether and then convert them into Litecoin. This is done via major banks like Maybank and CIMB Bank.
Litecoin – 2021 Updates
It is worth noting that Litecoin is actually one of the pioneering cryptocurrencies. It has been around for a decade now having entered the scene in 2011. What makes Litecoin such remarkable crypto is its focus on peer-to-peer transactions which is fundamental in the blockchain platform. Founder Charlie Lee had in 2017 left and sold all his Litecoin in 2017 to start Coinbase but has since made the u-turn and is now leading the Litecoin Foundation.
While the price dropped then, it has since grown steadily. Litecoin has since surpassed its highest threshold in 2017 which a lot of market analysts believe is among the best altcoins out there. Another significant factor that makes Litecoin stand out is that it is very much like BTC, running on proof-of-work validation platforms which is Scrypt-based. To date, it is one of the most listed cryptocurrencies out there which is why it has all the potential of growing stock.
From 2018 onwards, the daily addresses have grown more than 3 times. For comparison, the total daily transactions were about 28,500 in April 2018. Fast forward to May 2021, it has since grown to more than 72,000!
As of May 2021, there are still more than 65 million Litecoin outstanding from the total of 84 million. This means that with nearly 80% float, holders of Litecoin will see the value spike once more coins are mined. This makes Litecoin a good time to invest in now.
In the current market condition, Litecoin’s price hovers around US$250 to US$300 although many analysts believe that it would not stay above US$300 for 2021. That said, it would be best to buy Litecoin if it is anything below US$270 and keep it for the next 3 years. If this pattern continues, it should breach US$400 by 2023 and stay around that level.