Litecoin is a popular cryptocurrency and one of the earliest altcoins ever launched, originally created in 2011 by former Google engineer, Charles Lee. The coin was a result of a fork in the Bitcoin blockchain, and it shares similarities with Bitcoin, although it has a distinct algorithm and different goals from Bitcoin. It was originally developed as a ‘lighter’, faster, cheaper alternative to Bitcoin, and is still seen that way by some users. Litecoin is now a successful and regularly traded altcoin that can be mined and is widely used as a peer-to-peer payment option. You can also buy and sell Litecoin on major crypto exchanges and with brokers that support the trading of cryptocurrencies.
Litecoin was initially developed to address concerns that Bitcoin was becoming too centrally controlled and to make it harder for largescale mining firms to dominate the mining of altcoins. Large enterprises were gaining control of the mining process at that time by using a different encryption method, and this meant that individuals could not hope to compete in the long term.
In this respect, the altcoin did not fulfill its goal, as miners quickly adapted their mining rigs and continued to grow their capacity. To this day, the majority of Litecoins are mined by large, enterprise-sized mining operations, however, there are now many smaller coins that evolved later that are regularly mined by individuals. Despite being developed from a fork in the Bitcoin blockchain, each Litecoin is now worth a fraction of the price of Bitcoin, however, it is still considered a valuable coin and is commonly traded.
How does Litecoin work?
Like other cryptocurrencies, Litecoin operates on a blockchain. It uses the Scrypt hashing algorithm, which means it runs much faster than some other digital currencies, including Bitcoin. Just like other cryptocurrencies, however, Litecoin can be very volatile. Litecoin was released with 150 pre-mined coins and has a total maximum supply of 84m coins. As of April 2022, there are around 14m Litecoins that could still be mined.
Litecoin is a fairly frequently traded altcoin and is also used for peer-to-peer transactions, paying for goods and services, and gambling at online casinos. Litecoin transactions are faster and cheaper than many other cryptocurrencies, especially when it comes to micro-transactions. If you are going to hold your Litecoin for any length of time, you will probably want to store it in a secure wallet, as with any other cryptocurrency.
Like most other digital currencies, Litecoin started off almost worthless and has gained value due to investor interest and the number of places willing to allow users to spend, trade, buy and sell Litecoin. It is a volatile asset and has varied greatly in price over the years since its launch.
Litecoin hit a big price spike in late 2017, before hitting an all-time high in late 2021, when it was briefly trading at over $250 per coin. In between, however, the coin’s value has fluctuated considerably, sometimes dropping to a little over $30 per coin. So, as with any cryptocurrency, investors should be aware that volatility is to be expected and there are no guarantees that any coin will hold its value consistently.
Litecoin price history
Like most other digital currencies, Litecoin started off almost worthless and has gained value due to investor interest and the number of places willing to allow users to spend, trade, buy and sell Litecoin. It is a volatile asset and has varied greatly in price over the years since its launch.
Litecoin hit a big price spike in late 2017, before hitting an all-time high in late 2021, when it was briefly trading at over $250 per coin. In between, however, the coin’s value has fluctuated considerably, sometimes dropping to a little over $30 per coin. So, as with any cryptocurrency, investors should be aware that volatility is to be expected and there are no guarantees that any coin will hold its value consistently.
Litecoin staking
Staking is a way that users of a particular cryptocurrency can secure and verify the network by locking away coins for a longer period of time. It is possible to earn interest on the coins you have locked, which will vary according to how long you are willing to allow them to remain locked for. Litecoin staking is a process which can be done using BlockFi, and involves adding your coins to a staking pool, which also allows you to verify new blocks and earn additional Litecoin currency.
The future of Litecoin
As previously mentioned, Litecoin is a volatile asset and there are no guarantees regarding where the price will go in the future. As of early 2022, the coin is still rated in the top 30 cryptocurrencies by market cap and there are plenty of supporters of the coin who are expecting it to gain value in the near future. Overall, the views of analysts and experts vary. As with all cryptocurrencies, a lot will depend on whether it becomes more widely accepted as a payment method, and how much popularity it gains as more investors, and more cryptocurrencies, enter the market. The fact that many online venues, such as virtual casinos and sportsbooks, are accepting Litecoin can only be a positive sign for the altcoin.
