Litecoin is a popular blockchain-based cryptocurrency, and if you’re debating on how to get involved, this guide is for you. We have another guide on the basics of cryptocurrency to check out if you’re new to industry as a whole. This guide is specifically geared toward litecoin.
What Is Litecoin?
Litecoin is a blockchain-based cryptocurrency created by Charlie Lee in 2011. It’s technically almost identical to bitcoin – in fact, it’s essentially a fork. It does have differences, though, including processing blocks every 2.5 minutes (4x faster than bitcoin) and a more difficult algorithm to solve. This makes litecoin harder to mine than bitcoin.
Since faster transaction times are coveted in financial services and it can handle more transactions, litecoin gained support from several businesses and organizations. It’s not as widespread as bitcoin, but it’s accepted in enough major exchanges to be considered a viable currency.
On February 18, 2018, a litecoin fork called litecoin cash was created. This fork has been disavowed by the litecoin community and is only traded on sketchy exchanges like YoBit.
How Much Is Litecoin Worth?
Litecoin has a market cap of $8,867,955,957, as of March 22, 2018. This is based on a circulating supply of 55,749,589 LTC, with each litecoin token being worth $159.75. Over $393 million litecoin is traded each day.
The peak price of litecoin so far occurred on December 18, 2017, at a price of $372.58.
Litecoin can be mined, but it’s more difficult than bitcoin to do so. This means a specialized FPGA or ASIC mining rig is required. In addition to transaction times being 4x faster than bitcoin, there are also 4x as many litecoins possible (84 million total supply).
Who Supports Litecoin?
As it’s purely a cryptocurrency, litecoin doesn’t have much enterprise support. Merchants that accept it are few and far between, although it’s recognized on all major cryptocurrency exchanges. It’s very easy to convert litecoin to bitcoin for spending purposes or just cash out to fiat currency.
Litecoin was updated with Segwit, the controversial capacity protocol that divided the bitcoin community. This theoretically makes it more than 8x more efficient than bitcoin. The largest litecoin purchase on record so far is a $90,000 Tesla Model P85 from Southern California dealer Benz and Beemer, which was processed through GoCoin.
Where Can I Buy/Sell Litecoin?
If you have any other questions about litecoin’s cryptocurrency, standards, or blockchain not covered above, please feel free to leave a comment below.