Is Litecoin worth it? 2018 Trends
Given the rise in popularity of the cryptocurrency niche, more and more people are becoming aware of its potential. Nowadays, almost everyone with an Internet connection knows what Bitcoin is, but what about its alternatives? Litecoin is one of Bitcoin’s clone currencies, which was designed to be a faster and lighter version of it.
Should you invest in Litecoin?
Litecoin stays in the top four digital currencies by market capitalization, breaching its own record at the beginning of December 2017. Recently, it has become much easier to purchase Litecoin, with many crypto exchanges adding it to their list of accepted coins. It doesn’t seem to be a big deal, considering that a lot of similar scenarios occurred simultaneously, so why Litecoin?
The price of Bitcoin has been rising since the beginning of 2017, and as for now, many experts think that its growth will stop at this point. With Bitcoin becoming the flagship currency of the crypto-world, people began to seek other opportunities to invest in. As for now, Litecoin is already as easy to purchase as Bitcoin, and the transactions go through much faster.
The initiator of Litecoin is Charlie Lee, a former Google engineer. Back in 2011, he established that Litecoin’s transaction processing time should be four times quicker than the duration of a Bitcoin transaction. Not only that, but the number of Litecoins that can be mined is four times that of Bitcoins, at 84 million. While Bitcoin is the gold in the crypto market with a capacity of $290 billion, Litecoin is a more lightweight version, with a total market capacity of $18 billion.
Why s Litecoin a relevant cryptocurrency?
It is widely known in the community that mining cryptocurrencies requires super powerful hardware. There is already specialized hardware for mining Bitcoin, and because it is so heavy, only specially built ASIC processors that can mine it efficiently. While these machines aren’t cheap, many people could find themselves more comfortable investing in something more affordable, and that’s exactly what Litecoin could offer.
Litecoin’s function is based on an algorithm called Scrypt, while Bitcoin requires SHA-256 hashing algorithm decryption to be mined. As long as the ASIC makers didn’t develop another machine for such functionality, the currency could be mined using standard GPUs. However, nowadays, it’s nearly impossible to make any kind of profit using a GPU-based Bitcoin miner, as the ASICs are superior in both performance and speed. There are already projects which aim to bring the ASIC technology to be able to decrypt the Scrypt algorithm, and that be more affordable than the conventional gear for obtaining Bitcoin. However, right now, you can easily mine Litecoin using GPU and CPU based miners, which is much easier and more convenient for the casual user.
While Litecoin has made it this far and proved its worth on the crypto market, there are always risks when it comes to cryptocurrencies. Even Lee has warned about the high risk of purchasing Litecoin, but it is not something unheard of in the crypto world. As long as you don’t invest more than you can afford to lose, we think it’s pretty safe to say that Litecoin is a good and stable cryptocurrency to invest in.