What is Litecoin?
Currently, Litecoin is in the top 10 of over 1,000 cryptocurrencies listed on coinmarketcap.com (this website is a great resource because it keeps track of all the cryptocurrencies that you can trade). It was created by a former Google employee named Charlie Lee. He initially got involved in the cryptoscene by attempting to revive a coin called Fairbrix. Unfortunately, it was a failure because of a bug that stopped Fairbrix blocks from producing coins as well as a 51% attack from the moment of its re-release. However, Charlie did not give up. Instead, he pressed on by looking at the source code for Bitcoin and then making a few adjustments he thought were necessary. Finally on October 7, 2011, Charlie released an open-source client on github called “Litecoin.”
Currently, Litecoin has 4 distinct advantages over Bitcoin:
1....Speed- Litecoin is confirmed faster than Bitcoin because it generates a block every 2.5 minutes as opposed to Bitcoin’s 10 minutes. This means you get your money quicker.
2...Liquidity- Litecoin will produce a total of 84 million coins as opposed to Bitcoin’s 21 million. This means that it will be more readily available for daily purchases instead of being hoarded like Bitcoin.
3... Equality- Litecoin miners use a slightly different mining protocol which creates a fairer distribution of coins.
4.......Technology- Litecoin is capable of testing and implementing technology faster than Bitcoin. For example, Litecoin pioneered the way for the technology called Segregated Witness by implementing it three months before Bitcoin. This technology is significant because it allows both Bitcoin and Litecoin to scale by making them faster and creates lower transaction fees.
With all that being said, it is important to note that Litecoin was created to complement, not replace, Bitcoin. The reason for this is because Bitcoin can’t scale to become a global currency. In light of this, Charlie believes Bitcoin should be treated like gold; a store value. It should be used for larger purchases, such as houses or cars, because it is so expensive and takes longer to confirm. Litecoin, on the other hand, should be used for your everyday purchases such as groceries, meals, and gas. In this way, Charlie envisions Bitcoin and Litecoin co-existing together by serving different purchasing purposes.
To be clear, in my humble opinion, this doesn’t limit Litecoin’s potential price growth but increases it by being able to provide a service Bitcoin is ill equipped to do.
Now that you understand what cryptocurrency and Litecoin is, I will walk you through what a Litecoin wallet is next. When I first got into cryptocurrency, I lost a few hundred dollars worth of coins because I didn’t understand how wallets or addresses functioned. I do not want this to happen to you.
But if you want to buy Litecoin right now, click here for a step by step guide if you’re in North America or Europe.
