What is This Cryptocurrency? Litecoin
Litecoin is a cryptocurrency that is considered among the top three first cryptocurrencies to be created. Bitcoin was the first cryptocurrency to be created followed by Ethereum and then Litecoin. Litecoin was created in order to increase the efficiency in cryptocurrencies. While Bitcoin is a new technology, Litecoin was aiming at improving the transaction speed as well as the amount of time it takes to create a new block. Cryptocurrencies are all very dynamic and changing due to forks and optimizations that occur when operators of the blockchain community decide to improve upon the projects.
Litecoin is considered by many to be like Bitcoin in the sense that it can be used as a store of value. Litecoin can be used to pay for transactions. If you are going to buy a cup of coffee, you can pay using Litecoin or Bitcoin. The amount of time it takes for a specific cryptocurrency transaction to be received, verified, reviewed, confirmed, and accepted can take from a minimum of ten minutes for Bitcoin and a minimum of two to three minutes for Litecoin. Litecoin is one of the most impressive initial technologies within the financial tech community. It is completely de-centralized meaning that the cryptocurrency is not controlled by any one individual and instead has a community of operators that can keep the cryptocurrency going.
Another difference between Bitcoin and Litecoin is the way that the cryptocurrency total amount is distributed. Bitcoin has a supply of close to 18 million coins while Litecoin has close to five times that amount. While both coins would be protected from inflation due to their amounts, Bitcoin has a smaller amount of coins than Litecoin. This may explain the reason for the pricing of each cryptocurrency. Bitcoin is currently priced at 9K while Litecoin is priced at $40. Regardless of the pricing, one of the most important factors of cryptocurrencies is the way that can be used. Litecoin has a better way of being used for daily transactions than Bitcoin. One may be used to store value while the other can be used for daily transactions primarily. Both have the potential to have an increase or decrease of value due to events such as improvement in protocol as seen with Segwit-protocol improvement for Litecoin which allowed individuals to send Litecoin in a matter of seconds for transactions.
The value of cryptocurrencies is very subjective and can vary from day to day. They are capable of storing value, but the value can change very rapidly. The technology aspect of the coins is important though for the ability of individuals to have their own wallets and allows for individuals to transact with the use of cryptocurrencies. Litecoin is an interesting cryptocurrency that arose from Bitcoin, but has established its own community and protocols. While being faster than Bitcoin, the amount of coins that Litecoin has may explain the value difference.
A cryptocurrency that is most similar to Litecoin is Bitcoin Cash as both are cryptocurrencies that have boasted of having a better transaction speed and a decreased mining block time. Both cryptocurrencies may be used in order to conduct daily transactions in the future as opposed to Bitcoin which has a big price difference. While there are many cryptocurrencies, the coins mentioned have a history of being the first coins to appear and have a community with operators that help the projects. It is important to keep this in mind when researching cryptocurrencies as not all projects are the same.