While the world has been puzzled, appreciative, bewildered or simple terrified by bitcoin’s blistering bull run, there’s another cryptocurrency that has positioned a far steeper increase this year. Bitcoin has risen 1,731% since the start of 2017 but Litecoin – often referred to as the “silver” to Bitcoin’s “gold” – has increased a whopping 7,000%.
The fifth-largest coin by market-cap has, in fact, observed its worth go up 124% since Sunday alone, when the Chicago-based switch over operator Cboe opened trading of Bitcoin futures contracts, fuelling assurance in cryptocurrency. Litecoin is at present trading at approximately $308 up from under $4.5 at the commencement of the year. If the crypto frenzy continues, and the Bitcoin bubble does not rupture, Litecoin might even hit $1,000 sometime next year.
Investors are latching on to Litecoin not only because Bitcoin is now so classy and perhaps overdone, but also because it is, in fact, a better option. According to Investopedia, the world’s largest financial education website, Litecoin is more stable and has a lifespan cap of 84 million coins, which is four times higher than the total number of Bitcoins that can be mined
Moreover, it not only brags quicker block generation – 2.5 minutes versus bitcoin’s 10 minutes so dealings will get established four times faster – but is also simpler to mine. Litecoin’s mining algorithms are appreciably simpler so it can be mined on less influential computers and consume less energy, which bodes well for its future. For watchful investors, its trading price also evaluates more favorably to Ethereum, the other biggie in the cryptocurrency market, which is twice as classy.
Litecoin was created by Charlie Lee, a former Google engineer, in late 2011. “I wanted Litecoin to balance bitcoin-not compete,” Lee reportedly said at a Coinbase talk in March this year, adding that “Bitcoin can be used for like affecting millions of dollars between banks, buying houses, buying cars. It’s really secure… Litecoin can be used for cheaper things.” The lower contract fees on Litecoin support its use in day-to-day transactions.
But before you rush to get aboard this new gravy train, be warned that Litecoin’s founder himself isn’t cracking the bubbly right now. “Sorry to spoil the party, but I require to control in the excitement a bit… Buying LTC is tremendously risky,” he tweeted on Monday. “I expect us to have a multi-year bear market like the one we just had where LTC fall 90% in value ($48 to $4). So if you can’t hold LTC dropping to $20, don’t buy!”