What is Litecoin?
Litecoin is the first altcoin in the world. We call all currencies that are not bitcoin altcoin. The coin was developed in 2011 by Charlie Lee, a former Google employee.
He wanted to develop a faster and cheaper version of bitcoin. Like bitcoin, litecoin was created as a digital payment system that is completely peer-to-peer, without the need for untrusted third parties.
How does Litecoin work?
Litecoin shares similarities with bitcoin. By using litecoin you will be able to quickly transfer a certain value from one person to another. All transactions are connected on the blockchain. Blockchain works as a decentralized transaction book in which all transaction information is stored chronologically. There are thousands of computers in the world with a copy of the complete transaction history. It makes it impossible to fool this system. Transactions are collected and placed in so-called blocks. That block is then added to the existing blockchain: blockchain.
The payment system is maintained by nodes and miners. You can compare a node with a counter. Each node in the network has a copy of the entire transaction data. This means that the transaction information is not controlled by a centralized institution, it is controlled by a decentralized network.
Miners are computers on the network that collect transactions, put them in a block, and then add that block to the existing blockchain. These computers are specifically designed to solve all kinds of mathematical 'puzzles'. The miner who solves it first can add his block to the chain and receive the reward that comes with it. Every miner is a node, but every node is not a miner.
What can you do whit LTC?
Payment method
Litecoin was developed as a decentralized digital payment method. With litecoin you can transfer values ??directly without the need for a third party, such as a bank. There are a wide number of places that accept litecoin as a payment method. Currently, bitcoin is the most popular payment method, but litecoin has a large presence.
Quick transactions
Do you want to transfer money to a member of your family abroad? If you depend on the bank, you will pay a 23% commission and the recipient will have to wait a few days before receiving the funds. When you use litecoin for the same transaction it only takes a few minutes and you will pay approximately as little as 20 cents in fees. No matter where in the world you send your coins, the transaction cost and the delay time will always be the same.
Hodl and investment
Many people speculate on the price of litecoin. They see litecoin as the currency of the future and expect its value to increase. Unlike euros, the amount of litecoins that will be created has already been predetermined. Supply is limited - if demand increases the price will subsequently increase. A litecoin consists of billions of units, making it possible to transfer only a fraction of a litecoin to another person. How else could you afford a coffee if the price continues to rise?
Litecoin price prediction for 2021
The price of Litecoin has been struggling to rebound from the selloffs in February and March, when essentially all financial assets collapsed to the lowest levels in years as investors hoarded cash amid the uncertainty it produced. the virus situation.
Cryptocurrencies were no exception to this risky move - despite repeated speeches about how crypto assets should not behave in correlation with traditional assets such as stocks and bonds - and Litecoin was among the hardest hit, losing sharply 75%. of its value in a matter of weeks.
