Litecoin, the 5th-biggest cryptocurrency by price and rival to bitcoin, has rallied almost 1,400% from begin of the year after hitting a new record high. On Monday, litecoin hit an all-time high of $64.2, marking a 1383% growth since January 1 in which it traded at $4.33, according to informationf from Coinmarketcap. The price of Litecoin pulled back barely on Tuesday and was above sixty-two dollars in early trade.
Litecoin is a cryptocurrency founded by Charlie Lee. It has a marketplace capitalization of nearly $3.28 billion. This makes it the 5th-largest digital currency in the back of ripple, bitcoin cash, ethereum, and bitcoin that is the biggest with a marketplace cap of $72.4 billion. Like bitcoin, it runs on a blockchain, which is a public ledger of transactions that cannot be tampered with. Litecoin developer Charlie Lee explained that he sees the cryptocurrency as being a key player in payments, while bitcoin is more a store of value.
Charlie Lee said:
“Bitcoin will usually be the gold popular as bitcoin will have the most powerful network, the most comfy, the most money mining it. Litecoin will be second to that and bitcoin being the most secure will obviously cost more. Litecoin transaction will cost much less. So Litecoin will offer a niche where it will be more used for payment while bitcoin will be more used for storing.”
Charlie Lee is a former Google employee who started the Litecoin cryptocurrency project in 2011. He likened litecoin to silver while bitcoin is more like gold.
“My analogy with gold and silver is type of that concept in which gold and silver were used as cash but at certain times, gold might be more used for maintaining it there while silver might be more utilized in coins for purchases. So yes you may use a gold coin to buy, but it’s not as convenient.”
Litecoin is profiting from the wider attention in cryptocurrencies. Ethereum, bitcoin and ripple have all seen huge price rises during these 12 months. On Tuesday morning, 36.9% of litecoin trading occurred in chinese yuan, accompanied by 22.4% in Korean won. Relying at the time of day, Litecoin trading in Korean won is bigger than Yuan. In South Korea, government have been looking at methods to control digital currencies, that’s buoying the marketplace.
Thomas Glucksmann, head of marketing at cryptocurrency exchange Gatecoin, stated:
“Regulation will bring an aura of legitimacy to the nations’ burgeoning speculative cryptocurrency marketplace and will inspire more participation from individual and institutional buyers.”
This year, the litecoin community activated improve to the system known as Segregated Witness. This raised the capability of the blockchain and boosted transaction speed. The equal process occurred with bitcoin some weeks ago. Now the cryptocurrency world is looking forward to something known as the Lightning community. This new technology tries to make transactions with cryptocurrency immediate as well integrate the specific digital curreccies.
So as an example, if you desired to immediately swap a few litecoin for bitcoin, Lightning network will make that possible. There are a plethora of known as altcoins in the marketplace, but Charlie Lee noted he doesn’t assume all of these to live on. Rather, bitcoin and litecoin might be the main ones but the Lightning network will permit easy access to different cryptocurrencies should they be needed for customers.
Charlie Lee stated:
“My imaginative and prescient is that with Lightning community, you would not need to hold some of these coins, you could simply maintain all your money in bitcoin or litecoin, and if there may be an utility that calls for ether or a few other token, you may without difficulty convert it on the fly to the token that you need.”