Bitcoin has been a popular choice among investors ever since it made inception on 3rd January 2009. It was founded by an anonymous person Satoshi Nakamoto. Bitcoin posed a new alternative to the traditional currency as digital money where there is no interference of any central authority be it government or financial authority. After its major success, came many new alternative coins. One such is Litecoin cryptocurrency.
The advent of cryptocurrency came as an innovation in the contemporary financial world. It gave people the authority to become owners of their money in absence of any third party. Cryptocurrency works operate upon a digital ledger technology, blockchain. They are not backed by any bank or traditional lending institutions. The personal information of the users is kept private since all the transactions are highly encrypted.
One needs to note that cryptocurrency is digital money to purchase anything online, then no it is not. Not everything can be brought with this digital money, unlike your usual traditional payment methods. More than secured purchases from online shops, cryptocurrencies are mostly referred to as investments. When it comes to investment, then Bitcoin is not the only choice left now. Every year, potential investors are getting access to more alternate options in the form of altcoins.
So if you also don’t want to get confined with Bitcoin, and are willing to try out with altcoins, then join me in this article, as I am going to reveal whether Litecoin cryptocurrency is worth a good investment to go with or not. But if you are new to the crypto world, then first let me give you an overview of Litecoin.
Litecoin cryptocurrency
Many would think of Litecoin as a new player in the crypto world, but it is not. It is one of the oldest cryptocurrencies on the market and holds popularity among the top altcoins. At present, Litecoin is known to be the 14th largest altcoin as per market capitalization. On 1st June 2021, the worth of 1 Litecoin was lesser than $200 after its all-time high price of $412.96 on 10th May. In the 10-year lifespan, the value of Litecoin has been through many wild swings.
Litecoin is a cryptocurrency that runs as P2P (peer-to-peer) technology for sending payments around the world in a very short duration. Being complementary to its senior crypto Bitcoin, Litecoin has successfully made a mark of itself in the market, becoming the first successive altcoin.
This altcoin was created in 2011 October by Charlie Lee, a computer scientist. Litecoin is one of the earliest and persisting altcoins. It came as the lighter version to the foremost crypto coin and superseded it in terms of transaction speed around 4 times faster at a minor fee of 5 percent.
The mining of Litecoin is done at a very short duration of 2.5 minutes in comparison to 10 minutes of mining of Bitcoin block. This brings the possibility for Litecoin in managing multiple transactions. This brings the possibility of managing more transactions in the altcoin.
For every cryptocurrency, the speed of transaction is a very important factor in getting acceptance widely from traders and customers. Akin to the foremost cryptocurrency, Bitcoin, Litecoin cryptocurrency makes the best use of an open-source payment network that is not monitored by any solo authority. In comparison to Bitcoin’s supply limit, Litecoin exceeds it with 84 million.
Is Litecoin a better investment?
The success of Litecoin cryptocurrency can be defined as being ranked among the top fifteen digital currencies according to market capital. Moreover, it remained stable in comparison to other alternate currencies that came during its time of creation. The one big reason why it is a better investment is due to the expectation of rising in its grand adoption and utility, which will also increase its value.
If you desire a crypto technology that is swift and less costly facilitating transactions across borders, then yes, Litecoin is a fine choice to go for investment. Its affordability and stability make it a better option for those interested in altcoins. In comparison, Litecoin trades lesser than Bitcoin whose price is $103.39. The price of the dominant crypto token is $38,491.36.
Final words
Litecoin cryptocurrency can be a better alternative to Bitcoin in terms of transaction speed and stability. But some are not fully convinced or bullish with its being a choice for investment. For them, it can be a speculative trade, but cannot be regarded as a better pick for investment.
According to Ben Weiss, the founder, and chief executive officer of the largest ATM provider, CoinFlip, some developers and engineers are not strong, neither there are any positive cases where investors have acknowledged Litecoin in a meaningful manner.
Another issue that has come up is the selling of all the coins by the creator of Litecoin and keeping some of them as collectibles. So this is something questionable. Log on to Cryptoknowmics to explore more about altcoins and topics such as what is a soft fork and a hard fork in the blockchain.