Is Litecoin Giving Bitcoin a Run for its Money?
This question has been on theminds of many players in the cryptocurrency industry. Ever since itsintroduction, Bitcoin has always been at the top. This can be explained by thefact that it was the first digital currency presented to the public.Consequently, Bitcoin has gone ahead to set the bar for virtually all types ofdigital currencies that have come after it. Bitcoin also has the highest marketshare and value of in the alternative currency section.
Litecoin has firmly taken the number two slot in the alternative currencyindustry. At some point, its fate seemed to be tied to that of Bitcoin. WhenBitcoin appreciated in value, the same happened to Litecoin. If Bitcoin’s pricedropped, so did that of Litecoin. This trend became predictable and familiar.Litecoin showed that it could keep up with the pace, but just could not gainany further ground on Bitcoin.
A change of fortunes
In 2014, the predictable trend changed. Litecoin and Bitcoin have beenexchanging the lead periodically. It is worth noting that experts in thecryptocurrency industry have an interesting view of things. They have pointedout that the best days of Litecoin lie ahead. The rise of Litecoin can beexplained by the following factors:
In the last year or so, the value of Litecoin has increased phenomenally. Acomparison done by Forbes magazine is testament to this. According to thiscomparison, between January 1, 2013, and January 1, 2014, the value of Litecoinincreased an impressive 328 times. During the same period, the value ofBitcoin also saw a fifty-fold increase in its value. The superior results ofLitecoin meant that investors went for it. Litecoin had and continues to have ahigher rate of return when compared to its counterpart.Ease of the Mining Algorithms
Litecoin employs Scrypt algorithm in mining. It is not easier or faster than the SHA-256 algorithm that is used by Bitcoin, but it relies heavily on RAM calculations, with RAM being the most expensive component of ASIC designs to date. This means thatinvestors can use fewer resources and energy to mine Litecoin. The SHA-256algorithm has to be used with hardware that has been specifically designed formining. But at the moment of writing some number of Litecoin ASIC miners are already in development or have been developed, making GPU mining of Litecoin highly unprofitable or very close to it.
Transaction Turnaround Time
Faster mining is important. Because Litecoin mining is faster, it leads to morerewards and this translates to increased profitability for the miners. Theminers will also have to wait for a shorter period of time for verification andapproval of their transactions.
Bitcoin’s Bad Publicity
Bitcoin has suffered bad press recently. First, the exchange collapses thatwere experienced some time back were disastrous. Secondly, a few rogueinvestors used the currency to carry out illegal transactions. Litecoin is notimmune to any of these downfalls. Even so, the fact that these misfortuneshave not befallen Litecoin means that its reputation is only partially affected by them.
Cryptocurrency offers a means to buy, sell and also invest. This is done whileavoiding the banking systems and government oversight. Your money is nottracked. In an economy that is prone to destabilization, this system ofinvestment presents a stable force.
In 2013, Bitcoin received a great degree of media coverage. However, it isfacing a number of challenges in India and China. This, coupled with thefactors mentioned above position Litecoin as a better investment option.Furthermore, the market has seen the introduction of mining computers. Thesehave been designed specifically for Litecoin mining. These computers will go along way in enhancing the cryptocurrency industry. Alpha Technologies recentlyunveiled their ASIC machines that are Litecoin specific. They went on furtherto state that they were taking pre-orders for the same.
Anyone seeking to invest in the cryptocurrency market stands a better chance ofsuccess by investing in Litecoin. This is because of its affordability, ease ofmining and return on investment. This is the best bet for the future in as faras the alternative currency market is concerned.
We have changed some of the inaccuracies in this article. Thanks to the vigilant community members for pointing them out!