I have been fascinated by crypto for a long time now, and I enjoy sharing what I have learned about it on ToughNickel.
What Is Litecoin?
Litecoin, or LTC, is a peer-to-peer cryptocurrency that enables fast and cheap transactions between individuals anywhere in the world. It was founded in 2011 by Charlie Lee, who later became an employee at Coinbase. LTC is based on Bitcoin's source code but has a few differences. The most noteworthy is that LTC has faster and cheaper transactions.
Litecoin was always a promising altcoin and has stood the test of time so far; it has kept a place near the top 10 cryptocurrencies by market cap. Many other cryptocurrencies are forks of Litecoin; the most famous example is Dogecoin.
What Are the Differences Between Litecoin and Bitcoin?
Since Litecoin is based on Bitcoin's source code, the cryptocurrencies are very similar. They both use a proof-of-work protocol, which means they can be mined. But one difference between the coins is that LTC blocks are created faster. While the Bitcoin network needs 10 minutes to mine a new block, Litecoin needs only 2.5 minutes. This means that transactions with LTC are much faster and also cheaper.
Both coins have a limited supply, but Litecoin has a higher max supply. Bitcoin has a max supply of 21,000,000, while Litecoin has a max supply of 84,000,000.
Another difference is that LTC is still being worked on and further improved while BTC really isn't. One recent improvement is the implementation of a code called MimbleWimble. BTC offers anonymous transactions but no privacy because all transactions can be seen on the public blockchain, which means that all your friends could trace all your purchases if they knew your BTC address. Thanks to MimbleWimble, LTC users have optional privacy for their transactions.
What Is Litecoin's Relationship With Bitcoin?
If you are familiar with the crypto world, you know that BTC is, in many ways, outdated. Many other cryptocurrencies can do everything that Bitcoin can but better. One such crypto is LTC, but there are also other currencies that are better than LTC.
However, there is one thing that only BTC will ever be. It is not just any cryptocurrency; it is the first cryptocurrency. BTC has established itself as the most valuable digital currency and it will remain unrivaled in that regard. For that reason, LTC doesn't aim to replace BTC but instead tries to be its sidekick. Bitcoin is digital gold, and Litecoin is trying to be digital silver.
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What Can You Do With LTC?
More and more businesses allow crypto as a payment method, and LTC is one of the most popular cryptos for due to its low fees and popularity. Many different merchants have been accepting LTC payments for a long time now.
One such merchant is Travala.com, which allows users to book hotels with LTC. One big step in Litecoin adoption happened in 2021 when PayPal made it possible to use LTC at 28 million businesses.
LTC is available on almost every exchange, and ever since its early days, it's been a very useful tool for sending value. If you send Bitcoin from one wallet to another, you have to pay $10+ just for the network fees. But if the wallet you are sending it to allows swapping coins, you can swap the BTC on your exchange to LTC and send Litecoin to your wallet for only a few cents in network fees. Then you could swap it back. The fees you have to pay your exchange for swapping are usually less than the transaction costs of Bitcoin. This works for other cryptocurrencies with high fees, too.
Can You Earn Interest on Litecoin?
Because Litecoin is a proof-of-work coin, it cannot be staked to earn interest. However, there are many crypto savings accounts that let you earn up to 4% yearly interest by lending it. This means that you can grow your LTC while holding it. One popular crypto savings account is Celsius, which currently offers 4.08% annual interest for any Litecoin you hold there.
Will the Litecoin Price Go Up?
We are currently in a bull market, so it’s very likely that all top coins will perform well in the near future. I am also very optimistic for the long run because LTC has survived multiple bear markets and has built quite a huge fanbase in the crypto world.
There are many other coins that are, from a technical perspective, superior, but just like Bitcoin, Litecoin has a form of "brand awareness." It is a well-established cryptocurrency.
Also, since there is a limited number of LTC that can be created, the price will grow the more mainstream the currency becomes. LTC has always been on the frontline of crypto adoption, and thanks to its cheap and fast transactions and as its new privacy tool, there many more people and businesses are likely to use it at some point.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2021 Krypton Currency