Bitcoin continued its crazy “Bull” run over the last few weeks topping $19,000 from around $1000 in January.
Sanity has to prevail at some time though and it beggars the question, “Where will it all end?”
What does seem to have happened, as Bitcoin strides forward, is that several of the other cryptocurrencies, are coming more into focus.
One of those is Litecoin.
Litecoin is a digital currency founded in 2011 and the price of Litecoin has achieved a staggering 8000% growth, in the last 12 months. In fact, Litecoin rose to $325 on December 11th, from just around $4 at the start of the year, and has seen growth of circa 400% in the past 30 days, alone.
There’s clearly a growing interest in Litecoin as people start to worry about the long term future security for Bitcoin.
Litecoin is clearly much more affordable, so maybe users are buying into Litecoin to diversify away from Bitcoin and lock into a potentially far more lucrative, and more useful alternative, as a practical, usable currency.
What is Litecoin and who created It?
Unlike the mythical story of Bitcoin, created by the mysterious Satoshi Nakamoto, Litecoin was created by a former Google engineer, and cryptocurrency advocate, Charlie Lee.
Charlie Lee has called Litecoin the “silver to Bitcoin’s gold”.
Litecoin runs on a decentralised network, called the blockchain and aims to produce a block of information four times faster than Bitcoin, that’s every two and a half minutes, as opposed to ten minutes for Bitcoin.
It is much faster and less power intensive than Bitcoin and has significantly lower transaction fees, averaging just under $1.
Why is Litecoin’s Price Rising?
Some have attributed the rise in Litecoin to Bitcoin’s boom, dragging it up as more people become interested in cryptocurrencies. Others have suggested Bitcoin investors have been diversifying their holdings following Bitcoin’s massive price spike.
Litecoin’s founder has also proved a high profile advocate of cryptocurrencies during their recent rise. Lee has appeared across US news programmes, unlike many more secretive Bitcoin backers, advocating Litecoin and blockchain as an alternative to banks and centralised currency.
How Can You Buy Litecoin?
Litecoin can be bought by signing up to exchanges like Coinbase. However, these online marketplaces are essentially storing your currency for you, if these go down, or get hacked, you could lose access to your coins.
Right now I am just about to go over to Coinbase, set my account and then find out what I have to do to properly protect my Litecoin.
How High Will Litecoin Go?
Whilst Litecoin hit a high of more than $325 in recent days, it has since fallen back to around $320.
Lee himself has come out to claim Litecoin is unlikely to go much higher than its current value.
Litecoin previously had its own mini-bubble, with its price almost hitting $50 in 2013, before tanking to under $4 and remaining there for close to two years.
Ok, sorry to spoil the party, but I need to reign in the excitement a bit…
Buying LTC is extremely risky. I expect us to have a multi-year bear market like the one we just had where LTC dropped 90% in value ($48 to $4). So if you can't handle LTC dropping to $20, don't buy! 😀
— Charlie Lee [LTC] (@SatoshiLite) December 11, 2017