The word is Litecoin. Does it ring a bell? If it does not, then keep reading this article to the end. This article is going to serve as a complete beginner’s guide on LiteCoin. LiteCoin is one of the lesser-known Cryptocurrencies; it has a market capital value of $12,886,413,053 and is ranked 8th on the list of Cryptocurrencies.
The price of one Litecoin is equal to $193.95. Bitcoin always seems to steal the spotlight from the other relevant Cryptocurrency just because of its soaring market value. But other Cryptcurecnies like LiteCoins also have the potential to make their own mark.
I am an investor, and I have been investing in LiteCoins for the last two years, and honestly, I have found them to be quite lucrative. I would even go further to say that investing in LiteCoins is better than Bitcoins since LiteCoins are not as volatile as Bitcoins.
So without wasting any further time, let us take a closer look at the lesser-known child in the world of CryptoCurrency. In this article, I will tell you everything from how Litecoin originated to the differences it has with Bitcoins.
LiteCoin is a Cryptocurrency and, at the same time, is a payment system. LiteCoins, just like Bitcoins, serve as a cryptographic digital currency that is used as an investment option and an alternative to fiat currency. Bitcoin is the eighth largest Cryptocurrency in terms of market capital value.
Since you are reading this article, I am going to assume that you know a thing or two about Bitcoin. As you already know, Bitcoin was first invented in the year of 2009 by a person called Satoshi Nakamoto. A person called Charlie Lee was responsible for producing LiteCoin.
It was created as a substitute for Bitcoin. At the time of writing this article, the value of one Bitcoin is a staggering USD 50,693, whereas the price of a Litecoin is only $193.95.
How Are Litecoin Brought Into Circulation?
Mining is the only process of how Litecoin is brought into Circulation. If you want to mine a Litecoin, you need to have access to very powerful computers as mining is a very resource-demanding activity.
The powerful computers need to solve a set of complicated mathematical equations in order to mine a LiteCoin. After solving those complicated equations, a newly minted Litecoin is produced. Mining is the only way how a Bitcoin or any Cryptocurrency, for that matter, can be brought into Circulation.
For now, the mining cap of LiteCoin has been set to 83 million. After crossing 83 million, there will be no more rewards for mining LiteCoin.
What Are The Rewards For Mining LiteCoin?
There are a lot of rewards that you can get while mining Litecoins. Their rewards are mainly 50 litecoins for successfully verifying a single block.
Like I already mentioned, the value received after mining is reduced; that is why a mining cap has been set to 84 million. The mining cap is set so that Litecoins remain deflationary in nature.
Difference Between LiteCoin vs Bitcoin
These are some of the major differences between Litecoin and Bitcoin that you should definitely keep in mind while learning about LiteCoin.
As A Source Of Investment
Bitcoins serve as a very lucrative source of Investment as Bitcoins are very volatile in nature. After Elon Musk’s investment of a whopping 1.5 Billion changed the game for Bitcoins forever, add to that deflation, since there is going to be a limited number of Bitcoins in Circulation, the prices of Bitcoins are going to go only higher.
Litecoin, on the other hand, does not prove to be as lucrative as Bitcoin since the value of bitcoin is not as high as Bitcoins. People do not invest in Litecoins as aggressively as they do in Bitcoins, so there has been no major price shift in Litecoin.
LiteCoins prove to be a good form of digital currency and can be used as a mode of payment, but it certainly is not a lucrative investment option.
As A Store Of Value
Store of value means something that is not just valuable but has the potential of staying valuable in the foreseeable future. Take Gold, for example; Gold can be considered as a material with a good store of value. Just like Gold, Bitcoins and LiteCoins are also considered to be inflation-proof.
But here is the catch, Bitcoins are more valuable than LiteCoins. The more the value of the commodity, the better it is as a store of value. For the long term, Bitcoin, of course, serves as a better store of value than Litecoin.
Use As A Substitute To Fiat Currencies
Many countries have become much lenient with Bitcoins. Highly developed countries have welcomed the use of Bitcoins with open arms. Bitcoins are used as a substitute for fiat currencies in many countries like Japan, South Korea, and Germany. Huge business enterprises like Tesla and Paypal have also started accepting Bitcoin as a legitimate payment option.
Most people are not familiar with Litecoins, and also major business organizations do not accept Litecoins as a legitimate payment option. It is mainly because LiteCoins is not that popular as Bitcoins.
(FAQ) Frequently Asked Questions On LiteCoin
In this section, we decided to address some of the frequently asked questions by our audience
Can LiteCoin Beat Bitcoin?
LiteCoin does not show the potential to beat Bitcoin. As there have been no major developments or major investments in Litecoins, it seems very highly unlikely that it will ever beat Bitcoin.
Is LiteCoin Legal?
Whether LiteCoin is legal or not depends on the region you are from. In simple words, if you are from the US, it is legal, and you are from some African country, then it is illegal.
Final Thought On LiteCoin
There you go; I hope now you know the basics of Litecoin. If you have comments or any feedback for us, then you can post it in the section down below. We will try our best to reply to your comments.