When Bitcoin was riding high on its success, its open code attracted many developers to mine their own line of cryptocurrencies. As a result, we now see a whole army of virtual currencies competing effectively with each other to try take over Bitcoin’s position.
The maximum influence on investors however is made by Litecoin, a currency which is provided with enough marketing campaigns, and now is assumed to be better-than-Bitcoin. There is also a brand value Litecoin has created among investors, by being circulated as the ‘silver-to Bitcoin’s gold’.
The current frenzy against Bitcoin has also acted as a fuel to Litecoin’s chances to become the best cryptocurrency alternative. Investors are looking forward to put their stakes in this silver version of Bitcoin, as it promises to bring them innumerable profits, like Bitcoin once brought to its investors.
How it started?
Litecoin was an idea of an ex-Googler that was successfully conceived into a digital coin by adding few twists to Bitcoin’s existing DNA-like code, quite like Mr. Hammond explained the creation of dinosaurs in Jurassic Park.
The creator this time was Charles Lee who cloned a species that was rather new, let alone extinct. While calling Bitcoin “an ingenious invention”, Lee then commented, “I just made some small changes that made the Litecoin better.”
At the end of November 2011, Litecoin was riding on 400% better value – at $28 – within just two years of its inception. It is now wearing the third largest market cap, which is about $414 million and still rising.
The Key Difference between Litecoin and Bitcoin?
According to the Litecoin creator, he had particularly focused on the Bitcoin’s loopholes when he was designing the Litecoin’s architecture. He says, which we all have encountered also, that Litecoin has much potential to generate a greater number of virtual coins, with its maximum limit being 84 million units. While in case of Bitcoins, only 21 million units can be generated.
This is also the reason why Litecoin’s mining speed is much faster than that of Bitcoin. Miners have confirmed it to be almost four times, with 2.5 minutes/block generation compared to Bitcoin’s 10 minutes/block generation.
The creation and exchange of Litecoin is based on an open-source protocol that is not controlled by any authority. The virtual currency has efficiently attracted the attention of mainstream media, with The New York Times, the CNBC and the Wall Street Journal predicting Litecoin to be the Bitcoin’s best alternative.
Although likewise Bitcoin, the Litecoin price is volatile and unstable. It had once dropped to 40% within 24 hours, during a frenzy against all virtual currencies originated from Mt. Gox’s transaction malleability issue. The major wrath of the whole episode however fell mostly on Bitcoin.
When Charles Lee was once asked why an investor should prefer Litecoin over Bitcoin, he replied, because it is more abundant and light.
To contact the writer: Yashu Gola at email@example.com