Due to the open source code, the Bitcoin system became the basis for creating a multitude of forks (offshoots from the main block chain). Simply put, almost anyone who wants, using Bitcoin source code, can create their own cryptocurrency. However, this is not the easiest thing, so there are not many really successful forks on the market. However, those that appeared and entrenched definitely deserve attention. The first among them is litecoin, which will be discussed further.
What is Litecoin cryptocurrency and how did it appear?
He immediately indicated that his goal was to make an improved version of Bitcoin, which, despite its popularity and rapid growth, eventually began to receive more and more negative ratings from users. In the reproach of the most famous cryptocurrency, low transaction processing speed, a small amount of blocks and insufficient network security from cyber attacks were set.
Initially, the project enjoyed great success – Litecoin quickly took second place after Bitcoin in terms of market capitalization. However, today it dropped two steps lower, letting go of the ethereum and the ripple. However, interest in this cryptocurrency does not disappear and its price is growing.
In order to confirm or refuse this statement, we will further consider what litecoin is in general, what fundamentally differs from bitcoin, how to get it, where to store it and what you can expect in the future.
Advantages of litecoin versus bitcoin
First of all, Litecoin is another peer-to-peer network with the same cryptocurrency (token – LTC). Using this cryptocurrency, you can make quick payments worldwide.
Already from the name it is clear that litecoin is a lightweight version of bitcoin. That is, there are no fundamental differences – everything is kept on the same blockchain and the use of basic program code.
Disadvantages of litecoin versus bitcoin
It’s about the threat that programmers call Time Warp. The bottom line is that a hacker, while mining the currency, may prescribe the wrong time value to the last mined block and thereby reduce the speed of coin mining. For example, the block was fully disclosed at 13 00 and the hacker introduces false information that it happened as early as 11 00. As a result, the generation of the entire chain may turn off or simply collapse due to confusion over time.
It is a direct intervention in the Litecon blockchain, which can knock the system off track for a very long time. To correct errors, mining will have to stop. Consequently, the coins will be mined less and the profit from their production will also decrease. In addition, downtime due to technical problems, harm the image of the entire network and can seriously shake its position in the market.
In the case of Bitcoin, such an attack is almost impossible – the blocks are generated slowly and their calculations are almost always 100% accurate. If the blocks are built quickly, as in Litecoin, the accuracy of the calculations decreases and it is easier for the attacker to “write” the wrong value in order to disrupt the normal functioning of the system. In other words, because of the high rate of generation of blocks, gaps appear in the network, which can be used to launch an attack like Time Warp.
According to statistics, the Litecoin network also undergoes various hacks and hacker attacks (except for the Time Warp described above), but less than Bitcoin.
On the one hand, this is due to the high level of protection against cyber attacks, including the double withdrawal of funds so widely used in the Bitcoin network (when one payment is made twice and the user simply loses money). However, on the other hand, this can not be attributed to the much lower price of litecoin (about $ 70 for litecoin versus more than $ 7,000 for bitcoin). The main victims of attacks are networks where large sums of money are spinning, and in this regard, Litecoin is noticeably inferior to Bitcoin.
However, there appears another plus for litecoin because of the smaller statistics of network hacks, more and more users prefer this currency. As you already know, it is the demand among users that determines the popularity and the cost of cryptocurrency. However, there is one significant factor that plays against litecoin. It is difficult and almost unprofitable to mine.
How to mine Litecoin?
Firstly, it is impossible to mine on processor power alone. Mining through ordinary graphics cards will also have to be forgotten – this idea often does not even go for self-sufficiency, not to mention the output to the plus. Electricity will have to spend a lot – so much that the cost of mined coins will not cover the costs of their extraction.
Much more profitable to mine Litecoins with the help of professional farms – special computer systems, sharpened for the extraction of cryptocurrency. However, the simplest farm will cost at least $ 2,000, and it will take a long time to pay off.
To get to the net profit, you need to use very powerful farms, which will be even more expensive. This option is more likely for industrial mining, which today is engaged in many companies around the world.
However, due to the low market value of Litecoin, there is a risk of going into a serious minus. This cryptocurrency is not worth enough to make sense to spend on the purchase of mining equipment. It is much more profitable just to buy coins.
The most obvious way is to get a cryptograph on the official website litecoin.org. You need to go to the site, set the settings in accordance with the browser, download the program and install it on your computer.
It is more expedient to keep savings on a multicurrency wallet that supports different cryptocurrencies. If you prioritize security and protection of personal data, pay attention to the services Litecoin Core and Cryptonator. They support more than 10 types of cryptocurrencies, including litecoin.
In favor of cryptocurrency, there is at least a wide acceptance within the framework of cryptocurrency exchanges and related services (cryptotoxices, exchangers, etc.). A number of users, as well as specialists, highly appreciate its chances of becoming an alternative to Bitcoin in the future. The high speed of processing transactions in litecoin may become a much more significant advantage than it is now. The fourth place in the world rating of cryptocurrency says a lot – at least that in the medium term, investing in litecoin is not likely to fail.
By the way, the top four cryptocurrencies differ in the fact that only their capitalization amounts to billions of dollars (in the case of Litecoin, the figure has already overcome the barrier of 3 billion). As practice shows, such projects are long-playing and promising for investors.
Moreover, experts say that litecoin will not lose relevance over the next 4-5 years and its value as early as next year could increase from 60 , 70 dollars to 300,400 dollars. Such a forecast promises a good profit to those who have already invested in litecoins or plans to buy cryptocurrency in the near future, while the course has not yet begun to grow actively.
If the Bitcoin network is faced with further difficulties, because the existing problem of scaling has not yet been completely resolved, litecoin may well expect even more rapid growth. Even despite the high level of security of etririum and ease of use of ripl, it is often litecoin that is perceived as the main successor of bitcoin.