Good News For Litecoin Owners
Litecoin owners are happy right now because the cryptocurrency hit a new record high of $64.20. That equates to a rally of one thousand four hundred percent since the beginning of 2017. Litecoin creator Charlie Lee expresses his enthusiasm and anticipates that the crypto coin will be used more for purchases in comparison to bitcoin, which he thinks will be more of a “value storing” mechanism.
The main different between bitcoin and litecoin comes in the form of transaction speeds, overall supply, and the way it is used. With litecoin being the fifth-largest cryptocurrency based on value, it has become a popular topic among cryptocoin buyers. Its rival, bitcoin, has helped boost the awareness of digital currency and the benefits are being enjoyed across the sector.
So, What Is Litecoin
As we outlined in our article, “The Difference Between Litecoin and Bitcoin” though they are both cryptocurrencies and run on bockchain technology, Litecoin has a more limited supply with only 84 million litecoins compared to some 21 billion bitcoin issued. Furthermore, litecoin transactions take a little over two minutes to go through, which is microscopic in comparison to bitcoins average of 100 minutes.
“Bitcoin will always be the gold standard because bitcoin will have the strongest network, the most secure, the most money mining it,” litecoin creator Charlie Lee said in an interview. “Litecoin will be second to that and bitcoin being the most secure will obviously cost more … Litecoin transaction will cost less. So Litecoin will provide a niche where it will be more used for payment whereas bitcoin will be more used for storing.”
Litecoin has been able to take advantage of the larger interest in cryptocurrencies with others like Ethereum and ripple also seeing jumps in price. Digital currencies may actually have begun to see regulation models begin to be created in places like South Korea where authorities are looking to crack down on the ever-changing market.
“My vision is that with Lightning network … you wouldn’t need to hold all these coins, you could just hold all your money in bitcoin or litecoin, and if there is an application that requires ether or some other token, you can easily … convert it on the fly to the token that you need,” Lee said.
Earlier in 2017 litecoin’s community members engaged an upgrade to the system called Segregated Witness or SegWit, which ultimately bumps up the capacity of the blockchain to increase transaction speeds. Bitcoin is undergoing a similar process and the “Lightning Network” could be ready to shake things up even more for cryptocurrency. The technology targets transactions and makes them nearly instantaneous with cryptocurrency while also integrating other digital currency.