Litecoin cryptocurrency review from creator Charles Lee

Litecoin cryptocurrency review from creator Charles Lee

We are used to hearing a lot about cryptocurrencies. We have a convincing example – Bitcoin, a work of financial art recognized as revolutionary and breakthrough. However, few ordinary people know that BTC has a fellow litcoin. This virtual currency has long achieved the same popularity as that of a big brother, although already today it occupies the highest places at the top of Internet money.

What it is?

Litecoin is the currency of the same name system, which was created in the fall of 2011. It is very similar to Torrent in many ways: computers are combined by the lightcoin wallet installed on them. They represent a single network, so they can exchange cryptocurrency without any problems.

Since Lightcoin took Bitcoin as its basis, it also does not have centralized management and is anonymous. However, it is worth noting that the creators conceived it rather than as a replacement for the well-known virtual currency, but as an evolved and improved version. LTC was able to stay afloat and gain recognition as a digital “silver”. The title of “gold” received, of course, BTC.

In 2013, experts began to believe that lightcoin could replace bitcoin. However, 2014 brought unpleasant news: the reward for one mined block of digital information dropped to 25 coins, while the mining complexity increased significantly. Many miners simply abandoned the idea of ​​mining cryptocurrency and switched to other options. This led to the rollback of LTC from 2 places in the world to 4 in terms of capitalization.

A bit about the creator

There are legends about the creator of Bitcoin: it is not known who is hiding under the name Satoshi Nakamoto. But we know a lot about the creator of Litecoin. This is Charles Lee, a real person. He is a programmer by profession, previously worked at Google, and now works at Coinbase.

What is the difference between Litecoin and Bitcoin?

These are two currencies based on one open-source code. However, there are some differences between them.

  • Production. If powerful video cards allow a better generation of BTC (the difference between the efficiency of graphic devices and processors is 20 times), then in the case of LTC this figure is two times lower.
  • The number of coins. The total number of coins that can actually be obtained through mining is limited to 84 million. Bitcoin has a lower rate of about 21 million.
  • Increasing difficulty. The nuances of generating blocks are recounted after 3 and a half days. In the Bitcoin system, this figure is 7 days.
  • Creation of new blocks. As a rule, each new information brick is created within 2.5 minutes. This is 4 times faster than in the Bitcoin system, which allows you to receive data on completed transactions faster and more efficiently.
  • Reward. At the very beginning of the existence of the system, the reward for each block created was 50 lightcoins. It was halved every 840 thousand units, and in 2014 it was reduced to 25 virtual silver coins.

What are the forecasts?

Today, the cost of one lightcoin is about $ 25. At the same time, the creators introduced a deflation model for the development of cryptocurrency – this indicates its gradual rise in price as a deficit arises. However, like other currencies, LTC has some problems, so forecasting something is very difficult.

Litecoin is still at the top of the most profitable virtual currencies, and experts are predicting excellent prospects for it. If it again begins a gradual climb upward in its capitalization, then the price of one Internet coin will increase accordingly.

What at the very beginning?

To start using this cryptosystem, you need to either use your wallet through a browser or download a specialized program to your computer’s hard drive. However, you need to take into account that the wallet weighs a lot, and if you forget the password for any reason, it will not be subject to recovery.

How to replenish a wallet?

You can increase the number of virtual coins in your wallet in 3 ways.

  1. Exchanger. The most convenient and popular way to purchase lightcoins is an online exchanger. You just need to select your currency in one field and select Litecoin in another.
  2. Forex Some participants use special forex brokers for exchange purposes. This is a more complicated, but no less profitable procedure. To start operations, you need to replenish your account and then put in money to purchase Litecoin.
  3. Exchange. Cryptocurrency exchanges are another well-known way to acquire this virtual money. For example, you can go to BTC-e.com, register your account there and start trading. This is a less convenient way to get Internet coins, but with some knowledge and skills, you can increase your capital.

How to earn lightcoins?

The first most popular and often used way of earning is mining – a kind of cryptocurrency mining. At the same time, two different types of mining are distinguished – ordinary and cloud mining. In the first case, you use your equipment, in the second – rent someone else’s.

Another method of obtaining LTC is taps – special advertising sites where you need to enter the captcha and get a certain amount of litecoin for this. In addition, you can get this virtual currency in games, as well as performing various tasks, providing services and even selling goods.

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