The main idea behind the creation of Litecoin is for there to be a better and faster version of Bitcoin. Litecoin introduced certain features such as SegWit and lightening network that is more appealing as it makes transactions to be faster as well as cheaper. Basically like most altcoins, Litecoin is more of a refined idea of bitcoin using which is regarded as proof-of-work function when it comes to security in terms of network on one hand and transaction on the other without having to involve an outside participant. Securing the network as well as transaction taking place without any third party involvement. This is perhaps what has made it raise from $2.80 per 1 LTC in 2013, to its current market value of $261 and there are still strong signs that this Estonia-based cloud mining platform will still go higher regardless of challenges.
For miners and technical traders, Litecoin is known to possess the ability to handle a higher transactional volume which attributed to its algorithm. This gives it one of the biggest advantages hence being regarded as the silver of the cryptocurrency world. This being so it still remains to be a very good investment as it offers a more refined algorithm capable of simultaneously speeding up the hashing power and system. Thanks to its faster block time, it has the ability to prevent double spending attacks which is one of the major threats in cryptocurrency.
Its main challenge was its surge which was attributed to a rather controversial announcement by its founder and former director at cryptocurrency exchange Coinbase, Charlie Lee who announced that he would sell out so as to avoid what he termed as ‘conflict of interest’. Prior to his announcement, Litecoin was gunning for $300 a coin after undergoing weeks of steady decline. Being in the top 10 largest cryptocurrency (i.e by market capitalization) Litecoin was at one time trading at $283 beating the US dollar by more than 16%.
Lee stated that he had reaped a lot from Litecoin’s success and that he is now well off without it, sentiments that did not rub off well with the investors following ensued whereby it fell by $170 from $380 to $210 in two days after his announcement to sell off his stakes. Among the many rumors that filled the interweb is that Lee had lost confidence in its performance while others were of the belief that he was leveraging with other digital currencies which triggered Litecoin to undergo one of its biggest rallies. The situation was worsened when Lee took to Tweeter to say that Litecoin’s bearish momentum after his announcement served as a clear indication that he had made the right decision to exit. He would later on say that he intends to wait until the digital currency returns to all-time highs prior to stepping aside.
Typical of most things tech, cryptocurrency is a realm that can be a bit of a daunting task to master and remains to be a new concept to many. However, the advantage that comes with purchasing this currency still remains a worthwhile investment with regards to both time and money.