Litecoin prices have exploded over the last month. They gained over 100% since mid-September. Now it’s at $66.19, after dropping to $32 on September 15. Litecoin’s sharp rise is caused by two primary variables according to analysts.
Several analysts have pointed out that Bitcoin’s recent gains are due to the rise in Litecoin’s prices. The two digital currencies have often shown strong price correlation. For some, the LTC has followed the trend of his most famous digital brother. The leading cause of the rise seems to be the recent Bitcoin rally. I remember that the total market capitalization of these currencies exceeded 176 billion dollars. Another explanation for the LTC’s steady increase in value could be investor coverage against a potential decline of Bitcoin. In fact, being prepared for such a reduction would make sense, given that this year the latter’s currency exceeded 500%. Investors may use LTC as a hedge if Bitcoin is adjusted.
What is LTC? How does it work? But above all, what are its differences with Bitcoin?
Litecoin is a crypto-evaluation and was born in 2011 thanks to a former Googler graduated at MIT, Charlie Lee. He took inspiration from Bitcoin, an ingenious invention. So, Lee said he had created modifications that today make Litecoin a better virtual currency.
The crypto value boom
Today we are experiencing the growth of crypto-evaluations and knowing all of them is an almost necessary job. Litecoin, or LTC, is a P2P (peer-to-peer) crypto-evaluation. It is based on an open source system that eschews the control of any central authority. Independence is a similar feature of all crypto-evaluations. Litecoin is the fifth virtual currency by market capitalization and is a real innovation compared to Bitcoin. Despite its innovative potential, LTC has lost much vs. value after the Ethereum boom. But still, it has a certain prestige in the crypto value market and has also broken through its historical heights.
Now that we have understood what Litecoin is, we try to find out more about how it works. LTC, like all crypto-evaluations, is not issued by any central authority. Mining procedures created it. Through this activity, miners solve complex mathematical problems for crypto-exchange. It is another similar feature between Litecoin and Bitcoin.
Every 2.5 minutes
The incentive for miners is 50 LTC each block verified. Every 2.5 minutes the network generates a block that is added to the others. So, with them, it goes to compose the blockchain, the public register of all transactions in Litecoin. I remember, however, how the number of Litecoins in circulation was already established at the time of its creation: the limit is 84 million. The LTC is exchangeable against a basket of different currencies, including not only virtual coins. But also the euro or the US dollar. The Netherlands, Czech Republic, Finland, and Russia are the countries where crypto-evaluation has been most successful in recent years.
The difference with Bitcoin
Although the LTC has been conceived and designed on the Bitcoin pillars, the two crypto-guidelines have some differences. Litecoin is better than Bitcoin because it is possible to add more virtual wallets and the higher limit. 84 million compared to 21 million Bitcoins). It is therefore not surprising to know that Litecoin’s mining times are four times lower than those of Bitcoin. The LTC takes 2.5 minutes to generate a block, while Bitcoin takes at least 10 minutes.
In addition to the total number of units and the transaction speed, a third Bitcoin-Litecoin difference is the encryption algorithm. LTC uses Scrypt which, being a sequential memory-hard function requires more memory. Why is the Litecoin better than the Bitcoin? Lee replied: “Because it is more plentiful and lighter“!