Some argue that lower value altcoins are better able to generate higher future profits than the giants whose prices are already on the crypto heap. Based on this underlying assumption, Litecoin (ticker symbol LTC) is one of the alternative instruments that has been gaining traction recently. Litecoin’s lower price base makes it a good bet for the price hike compared to the top dogs that make up the bulk of the virtual currency’s market cap. A lower rate is also a cushion against an enormous risk of correction.
Litecoin has benefited from the recent surge in interest among investors chasing hot new trends. It is equally preferred by buyers who value its potential as a currency, as well as coin-operated pinballers who play the game of speculation.
Often referred to as silver to Bitcoin’s gold by crypto enthusiasts, Litecoin deserves a closer look.
What is litecoin?
Litecoin, one of the oldest cryptocurrencies on the market, was founded in 2011, two years after Bitcoin, by a former Google engineer named Charlie Lee. In terms of market capitalization, Litecoin was the second strongest cryptocurrency after Bitcoin in 2014, but is now in the 13th placeNS Place in the crypto ranking, as of June 28, 2021, per CoinMarketCap.
The token shares many functions with Bitcoin and is often touted as a better alternative by its supporters. For one, they are both decentralized cryptocurrencies and are based on a proof-of-work model, the underlying process by which both tokens are mined.
However, despite some similarities, Litecoin pursues a different monetary policy. Although both have fixed supplies, the Bitcoin number is fixed at 21 million, while Litecoin has a cap of 84 million coins four times higher.
One important aspect where Litecoin outperforms Bitcoin is the speed of the transaction. Litecoin creates a new block or ledger entry every 2.5 minutes confirming a transaction, compared to Bitcoin’s 10 minutes. Superior transaction speed is a major reason for Litecoin popularity as it can process more transactions than Bitcoin in a given period of time.
Litecoin is also significantly cheaper to ship, according to CoinMarketCap, with transaction fees averaging $ 0.03 compared to $ 7.60 for Bitcoin.