Litcoin is an E-currency that is making the way forward in the cryptocurrency market. It is not the biggest of currencies, it can’t take on the likes of the Bitcoin, but it is making its own waves. The currency is demonstrating that it has the power to take on the competition and it is certain that it is going to be around for some time.
The rise in the price of the Bitcoin, this is not going to happen to the Litcoin; there is potential for the price to rise but there is not going to be the desperate race to find that missing computer with account details stored, like the stories that unfolded with the Bitcoin rush last year.
This coin is not a new comer to the playing field, but is a widely used form of currency for paying for goods and services without the need for banking institutions to cause problems and clog up the system with red tape.
The principals of the currency is the same as the other e-currencies; there are no physical coins made, the currency is mined, traded and sold all on-line. There are no banks, credit agencies or governments that have any control of these currencies. The US have recently discussed the option of cryptocurrency and whilst they have reservations regarding the currency, they are also able to see the benefits and possibilities of the currency too.
The worry for many is the question of safety and security; are these currencies able to do what they are claiming without the possibility of fraud to either party? There are complex computer algorithms that are used to protect the users of the currency; these ensure that the transaction happens and that there is no possibility that there can be two owners of the same item at the same time.
It means that it is a safe system to use and is perfect to make those transactions where you are not known to the person receiving the funds; it means you are safe as well.
The way that the currency has been created is the same in all the different cryptocurrencies. It is through miners, this is the term given to those that are responsible for creating the currency in the virtual world.
People or businesses use computers to solve puzzles and as each puzzle is solved they are rewarded with a coin. These coins are then sold, traded for goods or services and this ensures they then enter the virtual world of the e-currency. This coin is a totally new coin to the market; it is given its own new space on the ledger.
The computers that are doing the mining are high speck computers. The normal home PC’s are seldom used for mining because they aren’t powerful enough. It is still possible, to use a home computer to mine the Litcoin. This is due to the large amount of Litcoins that are still part of the puzzles and the large quantity of coins available. The problems that required solving originally were quite easy, but as the currency grew so the need for more complicated puzzles were needed to ensure that the currency didn’t get released in one massive batch and is therefore spread out. There are some individuals that have started to mine for the smaller cryptocurrency market, but you have to outweigh the cost of finding and solving the puzzles with the amount that you receive.
Each currency has an upper limit for the amount of coins that will ever be released, the total amount of Litcoin that can be released is a staggering $615 million. The coin is a long way off from reaching this target because at the moment there are only about $25 million in circulation.
The amount that Litcoin has potential for release is a lot higher than the main cryptocurrency, the Bitcoin. The estimated ceiling limit for this coin is just $21 million, a fraction of the Litcoin.
Litcoin is a relatively new currency on the e-markets with the conception of the coin in October 2011. It makes it one of the original coins but not the oldest in the e-currency area.
Without the mining companies and individuals that have managed to take this task on, the cryptocurrencies wouldn’t be in existence today. But it is not going to be an industry that you can go into without understanding the complexity of the tasks involved and the actual income that you can potentially generate from the mining.
What this means for the future of the Litcoin currency; it is not going to be leaving the e–currency market in the near future. It has a place in the markets along with the other currencies. It is going to be the currency that is able to be used by the general population to pay for goods and services because of the vast number of coins and the potential for each and every one of them.