Cryptocurrencies have come a long way ever since Bitcoin was launched way back in 2009. There have been various ups and downs , but generally many people are getting attracted towards it as a viable long term investment opportunity. This is because Bitcoin and other cryptocurrencies have seen its values increase dramatically in the times to come- Ever since it was launched, Bitcoin has seen its value increase 1,731 percent while its lesser known competitor Litecoin has gained a whopping 7,000 percent. There is no doubt that due to this fantastic increase people are converting their Dogecoin To Litecoin, their Bitcoin To Litecoin to invest for a better future. For those of you who are still wondering why Litecoin has gained so much against Bitcoin, here are 3 main reasons why investing in Litecoin is a much better prospect than investing in other cryptocurrencies.
The improved blockchain
Litecoin has developed its blockchain to be much more efficient than that of Bitcoin and other cryptocurrencies. Whenever anyone mines a block for Litecoin, an electronic signature is used to ensure a relatively good amount of anonymity. This also ensures that the Litecoin transaction is extremely secure. True, whenever a transaction takes place, the fact that the transaction is taking place is public knowledge, but the details of the purchaser or miner of the coins remains anonymous.
Moreover, even though Litecoin uses the Blockchain technology that other cryptocurrencies use, Litecoin transactions are done way faster at 2.5 minutes, as against the 10 minutes or more of Bitcoin and other cryptocurrencies.
The better supply of coins
All cryptocurrencies are currently being ‘mined’ from a source, they are a finite resource. There are varying dates on which it is estimated that they are going to diminish. Litecoin too comes in this category, but it has a far greater supply of coins than other cryptocurrencies.
With the passage of time, as the number of cryptocurrencies wane, so will they become more expensive to mine and trade, but with Litecoin, this will not happen anytime soon.
Simplicity in mining the algorithm
When you ‘mine’ a cryptocurrency, you ensure to solve the algorithm which can help you to procure the coins. This can be a tricky process as the algorithms for many cryptocurrencies are very complex.
This is not the case with Litecoin. It uses a scrypt-hashing algorithm that is much easier to solve than other cryptocurrencies’ algorithms.
In fact, some of the algorithms of other cryptos need the help of powerful hardware to solve the code. For many crypto miners, this is a big put off, who instead are now choosing the much simpler Litecoin cryptocurrency algorithm to buy their Litecoins.
With these many benefits, there is no doubt that Litecoin has a bright future ahead. However, lately there has been a lot of volatility in the cryptocurrency markets, with many converting Litecoin to Bitcoin and other currencies. The people behind Litecoin too are warning that before climbing on the Litecoin band wagon, you must be prepared for a lot of volatility of this virtual currency.