Do you know what Litecoins are? Or you think it is another name for the Bitcoins? Read on to know the relationship between the two.
In October 2011, Charlie Lee, a former Google employee and immediate engineering director at Coinbase tweaked the Bitcoin blockchain and added some codes. The result was the birth of a new cryptocurrency known as Litecoin. Like its pioneer, Litecoin Price is a decentralized currency that allows payment for goods and services without requiring an intermediary. Lee used the Bitcoin blockchain to develop a digital currency that would eliminate some of the major problems facing the Bitcoins.
Today, the coin has an average market cap of 45% in relation to other altcoins. With this information, you may ask whether it is worth to invest in them or just focus on Bitcoins. To help you make a good decision, here are some of the reasons why Litecoin can be a good investment choice:
Known and dedicated founder
One fact about people is that they love associating with items and products with a known founder. For instance, you have an iPhone as you know Steve Jobs was the man behind the Apple Company. With SEO you have George Konidis. You value Microsoft due to the reputation associated with Bill Gates. Using these facts as evidence, one can conclude that the anonymousness of the Bitcoin is one of the reasons why many organizations are skeptical in accepting it as part of their payment option even with it being the most popular cryptocurrency.
Unlike Bitcoin, Litecoins founder is known. Also, his history and professional experience are in the public domain. In this essence, there is a higher chance that the future of this altcoin is bright. Also, Lee’s dedication in promoting the acceptance of the coin by organizations is evidence that it will become the king of cryptocurrency in the future
High processing speed
One challenge facing Bitcoins is slow processing speed of transactions. As you may be aware, it takes 10 minutes to process one Bitcoin block. However, you only need 2.5 minutes to process a Litecoin block. Thus, a miner earns a token every two and half minutes for Litecoins while you have to wait for 10 minutes to earn a Bitcoin.
In this regard, Litecoin transaction processing is faster and has the capability of handling more transactions within a short period. Thus, many people will consider it in place of Bitcoins which means a rise in its value.
Bitcoin and Litecoins
Cost-efficient proof-of-work algorithm
When it comes to the generation of coins, both Bitcoin and Litecoins use a different algorithm. For you to generate Bitcoins, you need a powerful computer with high performing processors. Also, the process requires more electric power. On the other hand, Litecoins generation is cost efficient as it uses GPUs or graphics processing units that are affordable. Hence, unlike the latter, a large number of people can afford the Litecoin mining costs.
Reliability and investors trust
Speculation and rumors are some of the factors determining the cryptocurrency prices. For instance, negative news about Bitcoins has led to a huge fall in prices in the previous decades. However, the main reason for that effect is because there is no one to come out and clear the fears installed on the potential investors. As you know, Bitcoin founder is anonymous.
For Litecoin it is a different case. In case of any false and rumors perpetrated against this coin, Charlie Lee is readily available in major social forums. Hence, he can give the right information that will neutralize the fake news. As such, Litecoins prices remain steady apart from the usual fluctuations common in the cryptocurrency trade.
With this information, you now have an idea why investing in Litecoins can be a good idea.