One of the currencies that have become a new favorite for many cryptocurrency enthusiasts is Litecoin. Litecoin was developed by former Google engineer, Charles Lee who introduced it to the world in 2013 after two years of development with the promise to fix the current problems that digital currencies faced then. Lee did just that and this has been one of the main factors behind Litecoin’s astronomical rise to become the fifth largest digital currency with a market capitalization of $3.8 billion Litecoin was the third currency which became available for transactions on the popular digital currency exchange platform, Coinbase after Bitcoin and Ethereum.
Like with most other digital currencies, Litecoin is decentralized thus protecting it from interference and manipulation by governments and banking corporations. It allows individuals to make payments from merchants who accept digital currency payments while incurring negligible charges.
Why choose Litecoin?
So why choose Litecoin when there are hundreds of other alternatives? Here is why:
1. The first reason many people are resorting to Litecoin is its blockchain technology which is more efficient than most of its competitors. Litecoin is able to produce a new block every 2.5 minutes. This is ideal especially for merchants who want a faster transaction and it has led to its fast uptake by merchants. To even make their system better, Litecoin recently adopted a new technology known as Segregated Witness (SegWit) which makes blocks in the blockchain even smaller through the extraction of signature data from transactions. This will give Litecoin the ability to process transactions even faster.
2. The number of coins that can exist for any digital currency is finite. After that number is achieved, no more coins can be published, they can only be broken down. However, the limit varies between currencies. Litecoin’s limit is $84 million. This is four times higher than that of Bitcoin for example, which means there will be many more Litecoins in circulation as compared to Bitcoins. In the future, Bitcoin will have to be broken down extensively and most consumers will result in the much more solid and rounded Litecoins.
3. Another major reason to invest in Litecoins is the relative ease in mining in comparison to its peers. Digital currencies are based on code and with Litecoin using the Script hashing algorithm. This algorithm is much easier for miners to use unlike with most other digital currencies which use complex algorithms that require very powerful supercomputers to crack. This encourages new miners who may not have the resources to crack the complex algorithms to mine Litecoins and the overall effect is the widespread usage of Litecoins. It will also draw in miners of other currencies which will further drive the usage and popularity of Litecoins.
4. Litecoin is also the ideal digital currency for those investors who are seeking stability. Unlike some of its competitors, Litecoin has a cohesive community which can agree on major decisions easily. Some of the other digital currency communities have been known to openly disagree on major issues which negatively affect the value of the currency. Litecoin’s value is also relatively stable. This makes it unlikely that you’ll lose your money overnight when the value plummets.
The world of cryptocurrencies is still in its infant stages. There is still massive room for growth as digital currencies become more accepted and their uses increase. This is definitely the best time to invest in digital currencies and Litecoin is most definitely one of the best currencies to invest your money in.