Here's What No One Tells You About Litecoin
fill in your details and one of our representatives will be happy to assist you shortly
As a newbie in the cryptocurrency field, you might only be familiar with Bitcoins. Nevertheless, there exist more than a hundred digital coins that either compete or compliment with the Bitcoin. Like in the metal field where silver is second from gold, in the virtual world, Litecoins are like silver in the digital currency hierarchy. Hence, if you cannot trade with the virtual gold, you can move to the silver class.
But, what are Litecoins?
You have heard of Bitcoins and the process of mining them. Also, you already know about the anonymous inventor behind them. Now you are wondering, do unknown persons invent all digital currencies? Of course, the answer is no.
In 2011, an Engineer by the name Charlie Lee, a former Google employee, modified the blockchain codes used to generate Bitcoins. He aimed at enhancing the speed of transaction. In the process, he developed a new coin – Litecoin. According to him, this is a peer-to-peer virtual currency that improves instant payment across the world at almost zero transaction charges.
Like Bitcoin transfers, there are no intermediaries involved in transferring this coin between two individuals or business. All you need is a Litecoin wallet, and you are good to go.
Differences between Bitcoins and Litecoins
The two cryptocurrencies differ in three significant aspects which are transaction speed, the number of coins mined and the market cap.
a. Transaction speed
If you want faster transactions using digital currencies, the Litecoin should be your choice. Though this coin uses the same approach applied in generating Bitcoins, the principal object of its invention was to enhance the transaction speed.
While Bitcoin transaction takes a duration of 10minutes, Litecoin ones take around 2.5minutes. Hence, when transacting with a Litecoin, you only need to wait for five minutes for two transactions confirmations while with Bitcoins you will need twenty minutes. As such, with Litecoins you are safe from double-spending attacks.
As such, the transactions are four times faster than the latter. This means that a high volume of transactions is created and confirmed within a shorter duration using Litecoins than with the Bitcoins.
However, the software or algorithm applied in their generation consumes more memory space than in Bitcoins. So, to generate Litecoins, you need a high-performing computer similar to or powerful than one required for creating Bitcoins.
b. Number of coins
Most likely you have been in an economic or business class. If not, you are familiar with the law of demand and supply. When supply is high, demand will fluctuate, and the opposite is true. In cryptocurrency world, the same rule applies. The main reason why coins gain value is due to the limitation on their mining quantity.
For instance, you can only create 21 million BTC. On the other hand, you can generate 84million Litecoins. These values are a clear indication of why different digital currencies have varying values against the dollar.
c. Market capitalization
When it comes to market capitalization, Bitcoins takes the day. This is due to obvious reasons that it is the gold in the virtual currency world and its creation has a higher limit in comparison with the Litecoins. However, as usual, the market cap is not a fixed element as it fluctuates with forces of demand and supply. Also, as the cryptocurrencies gain popularity, their value is expected to rise.
As seen, Litecoins are complementary digital currencies. If you are unable to trade with BTC, you have an option of transacting with Litecoins. Also, just like the way you exchange CAD for other currencies, it is possible to do the same with Litecoins. Thus, you do not have a reason not to go digital by transacting with cryptocurrencies.
As the interest in bitcoins and other cryptocurrencies is increasing, more and more people in Canada have started wondering how they can buy these cryptocurrencies.
Bitcoin has crossed many barriers this year – starting from the $1000 mark in January this year to the $11000 mark a few days ago.