While Bitcoin tries to overcome the crisis caused by the recent failure of a bank and a virtual house exchange, a new encrypted currency named Litecoin is starting to become popular among the financial circuits. Just like Bitcoin, the Litecoin presents considerable risks to investors, mainly by volatility in its prices in the face of real coins and their total lack of regulation.
The Litecoin was created from the source code of Bitcoin which, being open, can be adapted by other programmers. Unlike Bitcoin, whose authorship is a matter of controversy, the Litecoin have a known creator: Charles Lee, a software engineer who worked for Google. Even if Litecoins is possible “to harvest” from an alphanumeric code, likewise Bitcoin, “The main difference between the two currencies is that Litecoin is more democratic. It can be harvested with a home computer, which today is impractical in the case of Bitcoin.
The Bitcoin Market began to buy and sell Litecoin in August last year. The virtual currency currently accounts for 20% of the volume of foreign exchange transactions. But the popularity of Litecoin continues to grow. In November and December 2013, the currency reached encrypted account for 33% of the trading volume of Bitcoin market, widely driven by positive international news.
Since its foundation in October 2011, Litecoin has experienced an explosive rise. In January last year, each unit was worth $0.07. The price reached the level of $ 40 in early December. On Friday, it was quoted at just over $15, according to the BitInfoCharts site. One of the stimuli of the Litecoin’s popularity is its quote, which is far below than the Bitcoin’s quote. On Friday, about $ 630 were required to take a single Bitcoin. With the same amount, you could buy more than 40 Litecoins.
Among the most recent setbacks suffered by the virtual currency is the Bitcoin’s closing stock at Flexcoin, Canada, and Mt Gox, Japan. In both cases, the companies admitted that they had their currency reserves encrypted stolen by hackers. Last week, a report in “Newsweek” said the creator of Bitcoin was, in fact, a Japanese-American named Satoshi Nakamoto. Born in Japan but living in the U.S. since the age of ten, Nakamoto denied the information that would have invented the virtual currency.
While Litecoins are offering a better alternative in times of Bitcoin crisis, it is up to investors to decide what they will prefer to buy; one Bitcoin or 40 Litecoins?
To contact the writer: Jonathan Millet at firstname.lastname@example.org