Less famous but with many strengths: it's called Litecoin, and a cryptocurrency that presents itself as a valid alternative to Bitcoin.
Not just Bitcoin: there is a very interesting cryptocurrency called litecoin, more recent, and makes improvements of no small importance in the field, that's why.
What are Litecoins?
The Litecoins are one digital payment tool, a peer-to-peer cryptocurrency designed by Charles Lee in 2011, two years later than its older brother Bitcoin. Just two years after its birth or in November 2013, however, it has reached a capitalization of 1 billion dollars.
The founder of this digital currency is a former Google employee who had a brilliant intuition inspired by the already existing Bitcoin cryptocurrency, on which the concept of Litecoin is based, but revisited to obtain a more effective means of payment.
As with the Bitcoins, the structure on which the Litecoins are based also needs a decentralized system consisting of several computers, and of miners participating in the blockchain.In essence, the Litecoin system based on the security of its blockchain, but also on the work of all miners, who deal with the validation of monetary transactions that occurred online. Also for this cryptocurrency, miners who provide the computational power of their computers to validate payment processes, then receive a reward in Litecoin for their work.
Transactions are secure and protected by sophisticated encryption, based on an algorithm called scrypt, and considered even safer than the one exploited by Bitcoins, with a firewall defined as impenetrable, powerful and effective.
Difference between Litecoin and Bitcoin
Although to understand the potentialities and the functioning of Litecoin, parallelisms with Bitcoins are often used, however there are substantial differences with them, namely:
- A Litecoin block is issued each 2.5 minutes, compared to the 10 required for the Bitcoin system;
- The algorithm used Scrypt, which is much faster than Bitcoin's SHA-256;
- The maximum ceiling of 84 milliongenerable, therefore four times the Bitcoin limit of 21 million;
- The largest blockchain is considered safer.
How much is a Litecoin
It is difficult to attribute a value to Litecoin as it happens for Bitcoins, since its performance varies the value continuously, and depends only on the market demand. At present, a Litecoin is worth a little more than $ 140, but it is necessary to keep under control the dynamic trend of cryptocurrency from dedicated sites like coinmarketcap.com
How to guard the currency
Also for Litecoins there are dedicated digital wallets that allow you to keep the virtual currency and keep it safe, both to make payments and to use them as a money reserve.
These wallets are called wallet, and retain within them the Litecoins possessed. They can be of three types:
- For computers;
- For mobile;
therefore it is possible to store Litecoin through special programs installed on computers, or in dedicated smartphone applications, or even on physical storage media.
Why invest in Litecoin?
In recent years the attention of the general public has been very focused on cryptocurrencies, for various reasons, but why should one think of buying Litecoins?
For various reasons, such as:
- Growing trend;
- Lower cost than a Bitcoin;
- Greater speed in transaction validation;
- Lower commission costs than Bitcoin;
- Possibility to use it both as a reserve and as a payment instrument.
Going into specific, as a cryptocurrency at least at the moment affected by a positive trend constant over time, which allows an increase in the value on which you can compete by buying when their price is lower and then reselling them when one of the frequent peaks occurs. At the same time, if you still do not have a cryptomete but you intend to buy, you can take advantage of a lower cost than that of Bitcoin, relying also on faster transactions and lower commission costs.
Finally, whoever launches into the universe of these cryptocurrencies in general can be attracted by the ease and security of payments throughout the world, or by the idea of ??having a piggy bank with a medium or long-term reserve.
The failed LitePay project
Recently, a notable Litecoin project had been launched, an attempt to spread to make itself known even among traders and customers, which would have made it easier to appreciate the value of this currency through the use of a physical card with a Visa circuit.
In essence, those who owned a Litecoin wallet could connect it to the Visa card, and then use the card to make payments: at the time of the card transaction an automatic conversion was performed, allowing the merchant to immediately obtain payment in euros or dollar. However, for those who did not have a wallet available, there was still the possibility of recharge the card in euros or dollars, then converted into Litecoin.
The objective of this strategy was to make Litecoins more attractive to everyone as a powerful and convenient means of payment, but one month after the inauguration of LitePay last February 26th, the company had to close its doors. The reason is related to funds insufficient to carry out the revolutionary service.
Missed opportunity or foresight for a monetary system that is still too immature?