If you are looking to further wide-spread your crypto portfolio, you can invest in crypto with Bitcoin Profit and with solid potential and with stability in the market. Both these features can be attributed to the crypto Litecoin, which is called the ‘lite version of Bitcoin’.
What Is Litecoin?
Litecoin is a crypto that was launched to the market two years after Bitcoin. It was introduced by the former Google engineer, Charlie Lee, as the ‘lite version of Bitcoin’. It is a cryptocurrency used for purchasing products or services across the globe without any need for an intermediary. Litecoin has always been viewed in comparison to Bitcoin. This is all due to its features being almost the same as Bitcoin, and it did change and alter some of the features of Bitcoin, which Litecoin’s developers felt it needed to change.
With $12.49 market capitalisation, it holds its 19th place in all cryptocurrencies in existence, although, during the time of its launch, it immediately became a strong competitor of Bitcoin. This is due to the creation of more cryptocurrencies causing their popularity to wane. This does not cage the potential of Litecoin, though. Experts predicted Litecoin’s value of $183.95 to hit its all-time high of $600 at maximum by the year 2025. This is due to its current market price having increased up to 230% annual price growth from its price from October 2020 to October 2021. Thus experts see the potential of Litecoin price even improving in the future.
Also Read: Cryptocurrency Guide for Beginners
It has a limited supply; thus, it is free from inflation. Litecoin has a fixed supply of 84 million coins and is currently circulating 68.84 million coins. Because the supply is limited, Litecoin is free from inflation which is usually the result of the government increasing the supply and production of fiat currencies, consequently resulting in lower fiat currency value, which means that you can buy lesser products with your money.
For every 2.5 minutes, the Litecoin network will generate a new block in its blockchain. To put it simply, the Litecoin network will add a new page to its digital ledger. Thus the new block will contain the record of all Litecoin transactions across the globe.
The newly generated block will undergo an integrity check wherein a mining software will verify all Litecoin transactions. If legit not, if verified as legit transactions, it will be entered as the next block of the chain. This process is made to thoroughly check all transactions happening in the Litecoin network.
The Advantages of Litecoin over Bitcoin?
The most distinct difference between Litecoin and Bitcoin is the cryptographic algorithms they use. Bitcoin employs the SHA-256 algorithm, while Litecoin uses a newer algorithm called script.
Since Litecoin was created to provide way faster transaction speed, it has become the main reason for its popularity. Compared to Bitcoin transactions, Litecoin has a way faster speed. Its transaction happens at just 2.5 minutes, while Bitcoin’s transaction speed is at 9 minutes. Due to Litecoin’s faster block generation, the network can handle more transactions.
Bitcoin has way more market capitalisation of $1.4 trillion while Litecoin is at $12.95, Bitcoin is the number one crypto while Litecoin is at the nineteenth place in terms of market cap, so if you do not have enough investment funds to go for Bitcoin or you think it’s riskier go for and invest in Litecoin, but of course, the decision where to put your investment lies solely on you and your financial status and goals as well as your skills set.
In addition, both Bitcoin and Litecoin have limited supply making both of them free from inflation. Bitcoin has just 21 million coins, while Litecoin has much more with total fixed coins of 84 million.
Litecoin is primarily used for purchasing services and products as well as to transfer funds between accounts. What people link about the Litecoin network is that there is no need for a third party mediating the transactions. All transactions are done through a peer-to-peer network.
Investors are interested in Litecoin because of its growth potential, which allows it to be a good long-term investment rather than Litecoin’s functionality rather than focusing on its functionality. Many experts believe in the potential of Litecoin to positively gain relative profits in the long run.
