In fact, the lion’s share of Litecoin mining is performed by mining farms and pools of crypto miners using sophisticated hardware. While Bitcoin is capped at a maximum supply of 21 million coins, Litecoin is capped at 84 million coins. Created by former Google engineer Charlie Lee, Litecoin was one of the first “altcoins”—a name given to cryptocurrencies other than Bitcoin (and sometimes other than Ethereum).
Doesa Litecoin Have a Future?
- Those factors create a scarcity which has helped drive up Litecoin’s value over the years, among other factors.
- If you want to use LTC for P2P payments, you can use the Binance app to pay someone with LTC.
- Scrypt was initially developed by the Litecoin development team to grow its own decentralized mining ecosystem away from Bitcoin’s system and make the 51% attack on LTC more difficult.
- Alex leans on his formal educational background (BSBA with a Major in Finance from the University of Florida) and his on-the-ground experiences with cryptocurrency starting in 2012.
- As of May 2024, there were no projects listed on Litecoin’s website or GitHub page.
- A financial advisor can help you decide if it is right for your portfolio.
- However, the LTC price rebound could be linked to the sudden capitulation of short holders, a signal often interpreted as a potential recovery.
Charlie has stated that he plans on continuing development on Litecoin well into the future and will never retire from the crypto space. Whether Litecoin is a good investment depends on your individual financial situation, risk tolerance, and investment goals. While Litecoin remains one of the most-traded cryptocurrencies, its long-term viability as an investment is subject to debate. However, he also notes that investors should carefully consider their risk tolerance and investment goals before making any decisions. In comparing various financial products and services, we are unable to compare every provider in the market so our rankings do not constitute a comprehensive review of a particular sector. While we do go to great lengths to ensure our ranking criteria matches the concerns of consumers, we cannot guarantee that every relevant feature of a financial product will be reviewed.
Rating · Based on 2 institutional ratings
Litecoin is a “peer-to-peer Internet currency”, capable of supporting almost zero-cost and fast payments worldwide. It is an open-source and fully decentralised global network with excellent trading volume and liquidity. Litecoin is one of the earliest cryptocurrencies ever made and was built using Bitcoin’s core code. Its aim is to leverage blockchain technology with fast, low-cost and secure payments.
Is Litecoin a good investment?
Lee referred to Litecoin as “the silver to Bitcoin’s gold.” This statement inferred that Litecoin was not intended to act as a replacement for Bitcoin but rather supplement it. Like silver, it would never be as valuable as gold, but it would still maintain a place as a payment method and be used more. Scrypt and Litecoin’s PoW require significantly more processing power than SHA-256 and Bitcoin’s PoW. However, Litecoin produces tokens at four times the rate Bitcoin does and has a smaller network, so it uses less energy to produce a block reward (at least in May 2024). While Litecoin (LTC) may not be the cryptocurrency on everyone’s mind, it is one of the most critical assets in the crypto space due to its role as a testbed for new Bitcoin upgrades and additions. Experts predict a Litecoin price prediction that may break through the $100 last high.
- The payments we receive for those placements affects how and where advertisers’ offers appear on the site.
- Created by an ex-Google employee a few years after the first cryptocurrency, it’s now one of the most commonly traded crypto-coins out there, with a market value in the billions.
- This could indefinitely increase the supply of Litecoin if it weren’t for halving.
- Despite Litecoin (LTC) being in the top twenty listed cryptocurrencies, it seems that consumers aren’t putting it in the same boat as other cryptocurrencies in the space.
- Like Bitcoin, Litecoin adopts the Proof of Work mechanism to enable miners to earn new coins by adding new blocks to its blockchain.
- While you might not see Litecoin (LTC) in headlines nearly as often as Bitcoin (BTC), it’s still one of the most popular cryptocurrencies.
It is difficult to determine how investors, traders, cryptocurrency fans, governments, and the general public will treat Litecoin in the future. Cryptocurrency is being scrutinized by governments; more cryptocurrencies are being created every day, and the markets are volatile. It had a market price of more than $80, a 24-hour trading volume of about $310 million, and a market cap of $6 billion. Between January and May 2024, the network set a record of 34 million processed What is Litecoin transactions—nearly four times the amount of transactions processed in the same period the previous year. The only critique we’d make about Litecoin (LTC) is the absence of critical information such as clear directives, project roadmaps and ambitions. Most cryptocurrency projects prioritise community engagement and communication to help keep the project in the spotlight, encourage adoption, education, and not least, encourage support from institutional investors.
How Is Litecoin Used?
Litecoin implemented SegWit in 2017, and Bitcoin eventually followed suit. SegWit is a technology which prevents excess data from being written into new blocks. This process frees up space for blocks to store more transaction data, increasing the number of transactions per second (TPS). In addition to miners, Litecoin features other network participants called nodes. Simply put, these are computers (AKA full nodes) or mobile devices (AKA light nodes or light clients) which further secure the network by storing and double-checking transaction data on the Litecoin network.