There are many digital currencies circulating around the crypto market these days. Bitcoin is certainly the most popular, but it is far from the only big player in the crypto world. Litecoin is another form of digital currency that, while similar in its decentralized nature to other currencies like Bitcoin, also distinguishes itself through some other attributes. Its popularity is also on the rise, but certain aspects about it have perhaps held it at bay from catching up to its more prominent predecessors.
One of the primary advantages of Litecoin is that there are more tokens in circulation than are generally available through other cryptocurrencies. In fact, there is about quadruple the number of Litecoin tokens in circulation (about 84 million) than the entire limit of Bitcoin (21 million). They also utilize a faster payment confirmation schedule, which is more expedient, and therefore generally considered superior to both Bitcoin and Ethereum.
Let’s learn some more interesting facts about the lesser known, yet potentially more promising cryptocurrency that is Litecoin.
Shocking Facts About Litecoin Coins:
1. The Litecoin Origins
At its inception on October 13, 2011, Litecoin, originally designed and developed by former Google employee, inventor, and computer scientist Charlie Lee, was considered, at its start, to be the “silver” to the “gold standard” of crypto which was Bitcoin. Needless to say, much like many other cryptocurrencies, Litecoin drew its inspiration from Bitcoin, especially since Lee began the Litecoin initiative after gaining Bitcoin experience. After founding Litecoin (LTC), Lee worked with Coinbase. Eventually, Litecoin would become validated and published on various cryptocurrency exchanges.
2. The Interesting Story Behind The Name “Litecoin”
Most new entities or products, especially in the business and investment spheres, that get a name are usually drawn from a particular origin or inspiration. In Litecoin’s case, the name was thought to allude to either the person behind its invention or the social media buzz behind it. However, in this case, upon its literal namesake, “lite” simply means being light, while the self-explanatory “coin” denotes a variance of currency. The “light currency” could represent its digital nature, making it physically lighter than cash (or fiat currency). Ultimately it is just known as LTC, Litecoin, or simply and most commonly used symbol of “L.”
3. Litecoin Is A Developmental Branch Off (Or Fork) Of Bitcoin Like Bitcoin Cash
Before explaining Litecoin as a fork from Bitcoin, it is important to clarify the term “fork” in the context of cryptocurrency. In a nutshell, a fork is a change to Bitcoin’s network systematic operation, such as in an instance when two or more blocks end up having the same height as they do dimensions.
Bitcoin isn’t alone in experiencing such “forks”. Litecoin has spawned forks itself that completely altered the platform, deriving a new variant of crypto. In terms of software development, a concept certainly applicable in crypto terms, a fork is any change of direction that involves the source code being copied from one software package to an alternate location, then that copy being altered into an independently functioning entity with notable variances from the original. As it is Bitcoin’s fork, Litecoin’s founding and design were riven by the same protocols, which Litecoin continues to utilize currently.
4. Litecoin Involves Proactive Mining
Those who decide to mine cryptocurrency, need to correctly pick the most productive one, as well as pursue this goal irrespective of how time-consuming and how expensive it is. The mining process is a type of record-keeping exercise or service that is able to routinely be used to create new crypto coins. In that way, it is similar to most traditional and existing cryptocurrencies.
Litecoin blocks for the blockchain are generally more intensive and tend to be difficult to generate and produce, but miners are able to create a cryptographic hash from all of the blocks that contain specific requirements or criteria. The only way to figure out what the best method for block creation is would be to assess and formulate how many are able to fit.
5. Litecoin Incentivizes Miners To Create Coins With Rewards For Their Productivity
Recently, Litecoin has been developing into a more productive methodology with a more profitable endpoint. The platform has really stepped up its reward incentives to its users, especially in the past year. They currently offer rewards to anyone who is able to mine a block. The reward system was not always this prominent. When Litecoin started, it offered 50 LTC per block, with the reward being split in half for every 840,000 blocks.
The reward program is centered around that very block number. For every 840,000 mined blocks, a reward is generated. It is important to remember, however, that mining takes approximately 4 years, and currently the block reward is 12 and a half coins for every block. The reward gets divided when a particular target goal is reached, therefore decreasing after every block is produced. This incentivizes the early creation, helping to grow the blocks, with diminishing reward returns as the number of coins increases.
6. Litecoin Is A Very Popular Global Gambling Cryptocurrency
Along with some other digital currencies, Litecoin gambling has become increasingly popular, with the general utility of crypto coins used in contemporary gambling industry settings quite frequently. With every passing month, Litecoin is cementing a more prominent position as one of the preferred options for those looking to gamble with crypto.
This is not always a positive thing in the gambling industry though. Gaming and gambling have become increasingly outlawed in various countries around the world, while many others have intently parameterized the currency with which gambling is permitted, encouraging fiat currency at best and refusing to operate or manage crypto at worst. But is this actually a productive and wise move?
In some respects, cryptocurrency has grown and innovated gambling practices around the world. Since Litecoin is decentralized, the transactions are anonymous, or in the minds of many gamblers, hidden. Crypto coins are starting to be increasingly preferred by gambling authorities since they have a high capitalization. That makes them a more reliable payment method, and therefore, significantly trustworthy.
7. Litecoin Is Very Dependent And Affected By A Small User Group Known As Whales
Whales, a term for entities or people who possess a massive amount of a particular digital currency like Bitcoin or Litecoin, have been shown by various recent studies to heavily influence and affect cryptocurrency values and leverage. Litecoin in particular is vulnerable to such effects. Because whales own such a high volume of the particular cryptocurrency, they are able to manipulate Litecoin’s overall valuation. Recent research also shows that it takes surprisingly few accounts to build a controlling majority of ownership of nearly any cryptocurrency.
Take for instance the fact that about half of all Litecoin has been shown to be held in just 189 accounts, with the ERC20 tokens being owned by a mere 34 addresses. Therefore, nearly a quarter of the Litecoin tokens are either controlled by the project founder or majority owned. By contrast, Bitcoin requires more accounts and e-wallet purchasing power.
8. Litecoin Is More Vulnerable To Market Fluctuations And Global Events Than Rival Cryptocurrencies
Theoretically, much like fiat currency, every digital currency will be influenced by external factors such as a variety of shifting global economies. Litecoin has shown itself to be particularly vulnerable to such changes, being once forced to face a $30 to $40 collapse in value. If one financial indicator is off, many factors seem to falter, affecting Litecoin in a particularly heavy manner due to its dependency on economies of scale.
The March 2020 pressure from Covid-19, for instance, utterly wrecked Litecoin, affecting it far more severely than it did other forms of digital currency. Many things depend on the economies and the world market, with oil prices being probably the most notable example of this. But they can also intensely affect Litecoin which needs more financial viability in order to withstand the market undulations. Oil pricing and supply issues indicated that there are market forces from OPEC and other players that directly influence Litecoin’s stability and value.
9. Litecoin Works On a Peer To Peer Model Making Its Function Unique
Litecoin is a peer-to-peer crypto digital currency on the internet, meaning that its electronically held digital currency protocol gains interest over time. Peer-to-peer is a decentralized platform, that allows two parties to interact without interference from a third. Since Litecoin has no central authority helming its control, the peer-to-peer system is critical. It allows Litecoin to offer high value payments from investors around the globe.
The currency operates on a proof-of-work model which means that Litecoin is able to verify that any parties involved in any said network have put in the amount of work or effort necessary on their behalf. Many other cryptocurrencies developed with the same general principles and around the same time as Litecoin, do not operate on such a peer-to-peer model.
10. The Important Distinctions Between Litecoin And Bitcoin
While Litecoin came about as a fork of Bitcoin, the two are quite distinct with several important differences. One of the primary ones is that Bitcoin and Litecoin use different cryptography proofing methods for their work formulas or algorithms. This is relevant because Litecoin’s algorithm was intended originally to generate quadruple the number of coins that Bitcoin does.
Another important difference has to do with Market Capitalization, with Bitcoin holding a massive advantage with its market capitalization of $109 billion, to Litecoin’s $3.25 billion one. The other important distinction has to do with how Bitcoin and Litecoin process their transactions.
While transaction confirmations between blockchain network members will be time consuming in both scenarios, Litecoin’s transaction processing is notably faster than Bitcoin’s, which is one of the main reasons that many businesses that use crypto coins, and favor expediency and efficiency, could prefer Litecoin over its originating alternative.
Shocking Facts About Litecoin, Conclusion:
In conclusion, Litecoin coins have a rich history and some surprising aspects that make them stand out in the world of cryptocurrencies. From its creation as a fork of Bitcoin to its adoption by several leading companies, Litecoin has proven to be a formidable player in the crypto market. If you enjoyed reading about the top 10 shocking facts about Litecoin coins, be sure to check out our next article on the TOP 10 Shocking Facts About Ethereum Coins to broaden your understanding of the crypto world.
frequently asked questions:
What Exchanges Can Be Used To Purchase Litecoin?
Binance is one of the world’s most prominent crypto exchanges, growing to become one of the go-to destinations for crypto purchases since its origins in 2017. It hosts well over 500 different cryptocurrencies that are permitted to be purchased with crypto coins, fiat currency, credit cards, debit cards, SEPA transfers, and bank transfers. Litecoin is one of the cryptcurrencies readily available for purchase through the Binance exchange. Alternatively, Litecoin is able to be purchased through LBank, the world’s leading crypto trading platform that offers a professional and secure service for the global conduction of crypto transactions.
Is Litecoin A Good Investment?
The answer to this question largely depends on if you trust industry experts. For what it’s worth, they agree that Litecoin’s future looks quite promising in the crypto sphere. It is relatively well known and is rising in popularity, but at the current time, it isn’t one of the world’s top 10 most popular or most frequently traded cryptocurrencies. In the middle of August 2022, it ranked out at a market cap of $4.37 billion.
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