Litecoin (LTC) referred to as ‘silver to bitcoin gold’ is becoming one of the best cryptocurrency to look forward in 2018. It was released on October 7, 2011 by Charlie Lee, former Google employee, aims to process a block every 2.5 minutes while Bitcoin requires 10 minutes.
Litecoin is supported by Coinbase (one of the largest exchange) which is another reason why investors are looking forward to invest.
Reasons for Litecoin having a bright future:
- Litecoin uses the Scrypt protocol instead of SHA256 which implies that miners using hardware to run bitcoin network cannot switch over to Litecoin.Thus is adds to the decentralized experience as the big miners cannot easily optimize their profits by swapping. Further they are working on confidence transactions as well. So overall Litecoin looks good in technical perspective.
- The faster processing, big blocks and more coins in circulation makes it easy to adopt. In a text conducted by a user to compare the speed of coins transferred from an exchange to the hardware wallet, Trezor, Litecoin performed best by transferring 23 coins in under 10 seconds.This has led to the businesses paying attention to Litecoin’s advancement and adopting it in their ecosystem as well. For example the popular ecommerce giant Overstock.com has been accepting Litecoin as a form or payment.
- Litecoin was the first to integrate Segregated Witness which will allow the use of lightning network enabling all its participants to exchange currency at virtually no cost. Its usability and relatively less volatility makes it a suitable option for the merchants.Payments of transactions for vacations, gifts and even precious metals can be easily made through Litecoin. Along with the retail adoption merchants, exchanges, wallets and other infrastructure are also integrating them in good numbers. Alza, an EU online retailer accepted Litecoin as a payment method in February 2018.
- Litecoin did not rise only because it is useful and became widely adopted, but also because of the fact that it is a great method of storing value. The limited supply makes the currency very deflationary and is one of the prime reason for the frequent rise in the prices. Litecoin is already a great concept offering real service to its users and has great inherent value.
- Litecoin today is the fifth largest cryptocurrency using blockchain technology with a market cap of 11.68 billion dollars and historic volatility of 9.46%. As most of the cryptocurrencies, Litecoin also struggled in the beginning of 2018.The value slumped from $346.37 on December 19, 2017 to $246.86 on January 5, 2018. It further declined to $117.95 on February 5, 2018 but recovered somewhat since then and was valued at $241.50 on February 20, 2018. Litecoin started at $4.33 in 2017 which depicts that it has enjoyed extraordinary growth.
- The price of Litecoin has been consistent and have a low volatility compared to Bitcoins that is why the price does not shoot up or drop down so dramatically and this is a good thing for long-term investors and people who actually intend to use Litecoin as a currency.Litecoin is usually first to implement new technologies before bitcoin. It can also handle a higher volume of transactions thanks to its algorithm.
- Adding to the obvious advantages of a design perspective and trading appeal, Litecoin is quickly becoming for the top three spots aiming to rise from the current top five spots in cryptocurrency world.Litecoin has been used even as a funding tool by a platform called Bankex which is designed to tokenize and validate illiquid assets like real estate and venture capital portfolios. The customers exchange their other cryptocurrency for Litecoins in anticipation of a transaction and may prefer to fund the ICO with Litecoin to save fees.
The steady and less volatile nature of Litecoin makes it great for spending, trading or arbitration. Many cryptocurrency enthusiasts have compared market capitalization of Litecoin with others and after doing the math based on its maximum number of coins, processing and other traits have given a view that it is undervalued.
With so much progress made on the lightning network and plans for confidence transaction, Litecoin may evolve as one of the most used cryptocurrency leaving others in the dust.
- Litecoin is expected to launch LitePay in the last of February, 2018 which will facilitate transactions through Litecoin and even store, spend and convert LTC into dollars.
- Charlie Lee has been very active and being very open about the problems that cryptocurrencies are facing at present, he is already working hard on the future of cryptocurrency.The Litecoin development team and community are supporting the cryptocurrency well. They are executing on their roadmap more effectively resulting in an easier to use platform.
Litecoin may rise in 2018 but would still remain affordable and easy to transact compared to bitcoin. Instead of being only a store of value, Litecoin would be like more of a spendable coin in the future. For instance at present there are various applications which allow to pay for things like coffee with Litecoin.
It does not have problems like some of the leading coins and given its relative strength and atomic updates, Litecoin will become more popular in the near future with the increase in price faster compared to bitcoin. However, if an individual wants to have a diversified portfolio, investment can be done in many other coins as well but with Litecoin taking the highest weight.
Disclaimer: the views expressed here are of the author and do not reflect those of Groww.