Litecoin could oust Bitcoin in the Future
Litecoin standout as the only true threat to bitcoin’s throne
With the digital currency getting more attention, litecoin is increasingly becoming popular among merchants and investors. This is happening despite the rising resistance by authorities from a growing number of nations.
Like bitcoin and other altcoins, litecoin lost a great deal of its value. Last year November, the digital currency was trading for over $48, but it currently trades for about $12. While the current price might appear very low, it is about 490% higher than it was six months ago. So in a way, Litecoin is slowly picking up!
Litecoin preys on Bitcoin’s Failure
Litecoin is based on bitcoin software, but it seeks to offer more than bitcoin. It offers improvements in the areas where bitcoin has remained redundant and failed to impress. Here are advantages of litecoin over bitcoin.
Cheap mining: It is cheap to generate, which also makes it the best alternative for new investors who want to benefit from digital currencies. Litecoin can be efficiently mined using consumer-grade hardware, though miners prefer powerful ones. In the case of bitcoin, very expensive and powerful machines are involved.
Cheap to buy: Currently $500, which is approximately the price of one bitcoin, will fetch you about 40 litecoins. Save for those willing to take much risk, most newcomers settle for litecoin.
Small transactions: Litecoin is standing out as the best option when transacting small amounts. For instance, due to litecoin’s low price, it easier for users to buy snacks or coffee using litecoin than bitcoin.
Faster transactions: Bitcoin transactions take three confirmations to be confirmed and each transaction takes at least 10 minutes. In total one transaction takes at least 30 minutes to be confirmed. Litecoin takes only 7.5 minutes to go through, that is, it is 4 times faster.
Why is Litecoin is still Silver to Bitcoin’s Gold?
While litecoin is quickly becoming a darling of cyber-currency fans, it is still small compared to bitcoin. Its transactions are 1/7 of those of bitcoin, and even the number of merchants that accept bitcoin is higher.
Bitcoin is the most popular cryptocurrency and the largest by market capitalization. It suffered most when the cyptocurrency market was shaken up the developments in China, losing over 70% of its value. One bitcoin now exchange hand for about US$490, which is still about 60% short of its price in December last year.
One thing about virtual currency is that they are very volatile, and portend high risk. In fact, it is one of the reasons why many authorities are not ready to accept it. To circumvent this risk, some of the digital currency backers invest in both bitcoins and litecoins. This makes sense because bitcoin and litecoin use different algorithms independent of one another.
Litecoin continues to play second fiddle to bitcoin, but this might change in the near future. If more newcomers continue to invest in ‘silver’ at the expense of ‘gold’, we are looking at a future dominated by silver!