The cryptocurrency market has the wind in its sails. Although known for their instability, these dematerialized currencies have become on the front page of the stock market news. It is, therefore, safe to invest in this sector of activity, which is experiencing unprecedented global success. The family of digital currencies is growing over time, like the price of Litecoin.
What is Litecoin?
Launched in October 2011, Litecoin is a decentralized payment system. It is a fork of Bitcoin because it developed thanks to the modification of its source code. Today, some specialists in the field consider it the youngest of Bitcoin since resulting from its code. This digital money makes it possible to carry out instant financial transactions worldwide. It guarantees you speed in the validation of transactions anywhere in the world.
Your payment is validated in less than 3 minutes, and the receiver receives their funds in minutes. Contrary to some may think, Litecoin can be mined because its algorithm is Proof-of-Work. The mining operation uses equipment accessible to all, like the GTCU.
Its use is recommended for small transactions, although the process is faster. Thus, it is possible to make money transfers between individuals or professionals.
How was Litecoin created?
It was born from Charlie Lee’s desire to offer professionals and individuals faster online payment solutions. The designer is a defector from Google who also made a career at Coinbase. The goal was to duplicate Bitcoin to correct all its shortcomings. These include the famous problem of slowness in the validation of transfer processes. Charlie Lee used the hashing algorithm to achieve his goals. As a result, the speed of transactions has become four times faster than in the past.
Lee partners with a famous developer, Mike Hearn, to embark on a cryptocurrency project. In September 2011, Charlie saw his project materialize and set up Fairbix, modelled on Bitcoin and Tenebrix. Very quickly faced with several launch problems, including those of software and pre-mining, the Fairbix project was dissolved.
After a few tweaks, he launched Litecoin on the market the following month. It was not until 2013 that this new payment network prospered. In 2019, Litecoin became the official cryptocurrency of the Miami Dolphins franchise.
Features of Litecoin
It stands out from the others by:
- The speed of remittances is a gamble won because sending operations are faster. We went from 10 minutes (for Bitcoin) to less than 3 minutes. It is the challenge that Charlie has set himself, and today, Litecoin has kept its promise: optimize the time of transfers. No more long waits!
- A remittance network: transactions are open to the public. Professional or individual, it is possible to have an electronic wallet and receive payments at any time.
- Reducing transaction costs: every banking transaction has a hit. One of the features of Litecoin Wallets is that you have the assurance of sending money internationally through its network at a price close to zero. A point of honour that raises this electronic currency to the rank of crypto-currencies with high added value.
- The security of operations: you can use this payment network with the assurance that your transactions are ultra-secure thanks to the encryption process of your wallet. Your private keys are, therefore, unique, and your password is always required before spending your tokens.
- Mining accessible to all: with the help of equipment that is itself accessible, the mining process becomes more manageable. Thanks to its algorithm based on Scrypt, it is possible to mine on the CGU graphics card. Thus, securing blocks becomes more efficient and more straightforward.
- A peer-to-peer currency: being a fully decentralized network, all users can make transactions without any saturation problem. Greater independence, as the system does not have a central authority.
- A Litecoin token issue is limited to 84 million coins. For the future of Litecoine – check out our guide.
Price history of the crypto Litecoin since its inception
- It was in 2011 that the adventure of Litecoin began. Its creator, Charlie Lee, a former Google is inspired by the Bitcoin code for Litecoin. In mid-November, the price of Litecoin is around $5. In less than ten days, it is propelled to 50 dollars.
- But as with all cryptocurrencies, the bankruptcy of Mtgox in 2014 will have consequences on the price of Litecoin. It plummets slowly but surely throughout the year to a level of $ 4.
- The price of LTC then remained broadly stable between 2014 and 2017, around $4.
- Litecoin started in 2017 with a price of about 4 dollars, but in April, the price of LTC began to take off to approach $ 80 in July of this year. But it was in November 2017 that the price of Litecoin took off, as it peaked at $360 on December 19, 2017.
- The year 2018 was then prosperous for Litecoin. In February, the group experienced its first fork: Litecoin Cash. A fork is a new software created from the source code of existing software. In July 2018, Google added Litecoin to its currency conversion tool. However, the gloomy crypto market weighed on the price of Litecoin, as LTC was trading at $24 at the end of the year.
- 2019 the Litecoin price peaked in June 2019, when it will briefly exceed $140. At the end of the year, the cryptocurrency returns to its level at the beginning of the year, at around $ 40. A price level around which the cryptocurrency has oscillated throughout the year 2020 as well.
- During the crypto bull run of 2021, Litecoin regained its highs, even recording a new high of $388 on May 10, 2021. The LTC price ended the year around $150 after a sharp downward correction in the second half of the year.
- The decline then deepened in 2022, with a low of $44 in June 2022. The price of Litecoin then stabilized, closing the year with a slight rise in November and December to $66.
What influences the price of Litecoin?
Like many other assets, many factors can influence the price of a cryptocurrency like Litecoin. Here are some key points that will help to anticipate price movements better.
As with any investment, the reports of specialized experts have a real influence on cryptocurrency’s price. Good analyses have positive effects on the price of the cryptocurrency. Conversely, pessimistic forecasts can also scare some investors and create massive sell-offs.
Nevertheless, paradoxically to what we might think, a Canadian study showed that a cryptocurrency tended to see its price decrease as it was quoted on social networks. Cryptocurrencies are susceptible to the notion of “bad buzz”.
The price of Bitcoin
It is a parameter to take into account. Remember that even if you invest in another cryptocurrency, the price of Bitcoin will always influence the price of the cryptocurrency you have decided to invest in. It is because this is the largest cryptocurrency project. Regarding Litecoin, inspired by Bitcoin, the prices can be entirely linked.
Regulations in certain countries
By definition, it is unpredictable. Nevertheless, suppose a country decides to legislate, especially about cryptocurrency payments. In that case, it is possible that this could have a positive or negative influence on the price of a cryptocurrency like Litecoin. It is, therefore, a parameter to watch closely if you want to invest in Litecoin or other cryptocurrencies.
Innovation and market dilution
These two factors are also likely to vary the prices of all virtual currencies. Although this is less impactful for more prominent cryptocurrencies such as Bitcoin, Ethereum or Litecoin that have entered the market with a real value proposition, innovation impacts the price of a cryptocurrency. A new currency enters the market with a revolutionary project, and it is the price of other cryptocurrencies could be impacted because investors could lose interest in other projects.
How does Litecoin work?
Litecoin is an online payment network accessible to individuals and businesses. It is a decentralized electronic money with multiple uses. However, this payment system only uses digital currencies. No need to try your hand with physical money; only owners of Litecoin digital wallets can use this system to send or receive funds.
The mode of operation is almost identical to that of other electronic currencies. When you initiate a transfer, the emitted data passes through pools that complete the transaction for a block reward. The pool here refers to an area of memory in which miners are responsible for the effectiveness of your transfer. The miner receives 25 litecoins with each transaction. The system uses the Scrypt algorithm rather than ASIC (application-specific integrated circuit), known for its efficiency in processing a large volume of transactions without resorting to the mining community. However, Scrypt involves this community in the process of finalizing transfers. Thus, mining makes generating more Litecoin tokens (LTC) possible.
Is Litecoin a good investment?
Any investment is a risk. As a result, it is difficult to predict the price of Litecoin and cryptocurrencies. However, some information does show that Litecoin presents itself as a good investment opportunity in the medium and long term.
Where can I keep Litecoin tokens?
When you buy tokens on a crypto platform, they remain stored on the platform. To have complete control of your tokens, you must have your e-wallet. For a short-term investment, a software wallet is the solution. Finally, the hard wallet hardware model is recommended for a long-term investment.
What factors can influence the price of Litecoin?
They are numerous; among them are the legislation, the state of the global crypto market and many others.