Litecoin’s Heavy Potential
Litecoin currently weighs in at #5 in the altcoin world, and some refer to it as “bitcoin-lite.” But many are realizing that its benefits and potential may be underestimated, particularly given its recent rapid growth in value.
Many cryptocurrency enthusiasts value Litecoin simply for the fact that founder Charlie Lee is still actively involved. In fact, he recently left his day job to pursue Litecoin full time. Mr. Lee’s expressed objective is to attract merchants and exchanges, bringing it further into the crypto coin mainstream.
Mr. Lee originally wanted his Litecoin to be complementary to industry mega-leader Bitcoin. So, for example, since most of Litecoin’s code is similar to Bitcoin’s, transactions easier and more familiar to operators. Other firsts by Mr. Lee are the Lightning network for immediate, no-fee transactions; the cross-chain atomic swap (with Dedred); and new technology upgrades without the inhibiting disagreements often found among large communities. He simply exercises more control more efficiently.
One of the recent moves by Litecoin is the Segregated Witness (SegWit) upgrade, which expanded blockchain capacity, increased transaction settlement speeds and lowered transaction costs. This gave Litecoin clear advantages in the minds of retailers who accept cryptocurrency. Transactions that used to take ten minutes to verify can now be verified in just 2-1/2 minutes. The Litecoin blockchain also has a maximum capacity of 56 transactions per second, compared to common industry rates of 7-15 tps.
Litecoin is “memory-intensive” versus “processor-intensive,” so it can be mined with less costly graphics processing units (GPUs). And with its 85-million coin limit, Litecoin has substantially more upside than those with lower limits, so more transactions can be accomplished before new currency releases reach their limit.
Lastly, smaller can be better in terms of market caps since lower dollar values can multiply more quickly than higher values. Of course, as in all investment opportunities, nothing is for certain and caution is key. Nevertheless, Litecoin’s #5 ranking may not reflect this coin’s true potential.