General information about Litecoin
Litecoin cryptocurrency was created by Charles Lee in 2011. This became possible due to the fact that Bitcoin made its code publicly available, which led to the emergence of a huge number of similar projects. It should be noted right away that Litecoin is not a clone of it, therefore it has a lot of significant differences.
Technically, the most important difference is the algorithm of work. If Bitcoin is based on SHA-256, then LTC is powered by Scrypt. Due to this, the electronic payment system works more intensively with memory, which greatly simplifies mining.
Litecoin has gone the same way as Bitcoin, using mining on CPU, GPU and ASIC.
The main similarities between Litecoin and Bitcoin
It has already been noted above that the electronic payment system is based on the Bitcoin code. Some of its blocks have remained unchanged, so there are similarities between these cryptocurrencies.
Litecoin does not have a single administrative center, so the system’s privateers have equal rights. Thanks to this, states and companies cannot influence operations within the system, the exchange rate, and so on.
- Group mining scheme.
The scheme of group emission of cryptocurrency in the Litecoin system is identical to Bitcoin. However, this is where the similarities of electronic payment systems end.
LTC advantages over Bitcoin
When creating a new cryptocurrency, its founder was clearly interested in providing users with a product that would have important differences from the original site. It is thanks to this that Litecoin is still an actual system and will exist in the future.
- Scrypt algorithm.
Using a fundamentally different functionality allows LTC to interact with memory faster. This speeds up mining significantly. Each block is processed on average within 2.5 minutes, when in Bitcoin, an identical process takes 4 times longer. An accelerated transaction allows for faster currency generation.
- Increased emission of coins.
Cryptocurrency emission is limited. In the case of Bitcoin, the maximum possible number of coins is 21 million, while Litecoin is 4 times that number – 84 million coins. By 2020, it is projected that only ¾ of the currency reserves will be generated.
Disadvantages of Litecoin
The electronic payment system has its drawbacks, which are important for all users to consider when starting to work with it. Among them it is necessary to highlight:
- irrevocability of finances in case of wallet theft;
- unstable exchange rate;
- low currency turnover compared to Bitcoin;
- possibility of double spending due to fast block generation.
Litecoin course analysis
Litecoin cryptocurrency appeared on exchanges in July 2012. For one year, the cost of electronic coins did not exceed 10 cents, so it was not very popular among users. In March 2013, the LTC situation began to change rapidly when the price climbed to $ 4 within one month.
The growth in value was replaced by a gradual fall in the exchange rate, which continued until October 2013. During this period, the Litecoin price fluctuated between $ 1.7 -2 $. Exuberant growth started in November, so by December LTC reached its peak – $ 42.97. Traders who entered the market at this moment will have to wait a long time to get a profit. After setting a record value, the same rapid decline began.
The fall continued until today. So the average cost by the end of 2014 was $ 2.7. A slight increase in the currency occurred in July, when the price rose to $ 6.3. After that, it again dropped to $ 3-3.5.
This year, the LTC cryptocurrency has risen in price again in June to $ 5.5, but as of 08/07/2016 its price is $ 3.7.
Litecoin system development forecasts
As of 08/07/2016, the total number of Litecoins is 47,003,267. This is slightly more than half of the possible number of coins in the system, so the issue of funds is still a relevant activity for users. This electronic payment system will definitely not disappear until 2020, which means that financial resources can be invested in it.
Bitcoin cryptocurrency began to experience serious fluctuations in value in 2013, so LTC appeared to users as a good alternative. Today, the exchange has LTC / Bitcoin quotes, so users can quickly exchange currencies.
Litecoin still has potential for growth, and the developers are setting themselves lofty goals. Among them are the following:
- sidechain support;
- ensuring confidentiality;
- the introduction of the Lightning network for instant transactions.
The Litecoin team interacts more smoothly, so it is likely that this year will be the year of LTC. However, it is too early to sum up the final results, since 2016 is not over, and the market can surprise its participants with its unpredictability at any time.
User feedback on the LTC system
Cryptocurrencies in early 2016 are hoping for an increase in the value of the currency. Recently, they began to forget about it, the poem in terms of popularity, it significantly lost in 2015 to Bitcoin and Ether.
According to reviews, users are confident that LTC will regain its high popularity as soon as competitive systems start having minor technical problems. Do not forget that the supply of Litecoin is consumed more slowly due to the smaller number of miners, unlike Bitcoin, so you can expect the demand for this currency to increase in the future.