Litecoin Price UK
Litecoin is a digital currency that has firmly established itself in the cryptocurrency market. The network's core values are centred around offering the market a faster and cheaper means of transacting value and making payments across a decentralized peer to peer network.
With an affordable price point, Litecoin offers investors, traders and business people the opportunity to conduct digital payments much faster and more cost-effectively than Bitcoin.
As Bitcoin was referred to as Digital Gold, Litecoin became known as the Digital Silver of investing in cryptocurrencies. Since its creation, Litecoin has established one of the top market caps in the cryptocurrency industry and has seen a steady increase in volume despite the bull and bear market conditions over the years, securing its rankings as a top cryptocurrency.
Litecoin at a glance
Litecoin is a decentralized digital currency that operates off of blockchain technology. The cryptocurrency offers a transparent and immutable monetary system that enables peer to peer transactions, without the need for a government or central authority.
When considering what is Litecoin known for, one of the key aspects to this digital currency is that it offers 4x faster transaction speeds than that of its predecessor, Bitcoin. By increasing the block size on the blockchain, the team was able to speed up the time it takes for transactions to be verified. To illustrate this, in 2017 0.00000001 LTC was transferred from Zürich to San Francisco in under one second.
Instead of Bitcoin’s SHA-256 hashing algorithm, Litecoin built their network to function off of a different hashing algorithm called Scrypt. This offers a lower hash rate and is more memory intensive than the original cryptocurrency. This allows smaller miners to operate on the network, as opposed to only large mining pools.
Who Created Litecoin?
Litecoin was created in 2011 by a former Google engineer and MIT graduate, Charlie Lee, to improve Bitcoin's functionalities and has made a lot of news headlines since. Intended to complement the network and not replace it, Litecoin was designed to provide a "lite" version of the original cryptocurrency (Bitcoin).
Litecoin was one of the first generations of altcoins to come into existence and cover significant ground in market capitalization. Altcoins are "alternative" cryptocurrencies to Bitcoin and the term was coined in the early days of the crypto industry when referring to new cryptocurrencies entering the market. Litecoin was released prior to the now second-biggest cryptocurrency, Ethereum. Litecoin is a popular trading and investing asset in the crypto space.
Charlie Lee had a large portion of the cryptocurrency when it was created and continued to buy more over the years until 2017 when he disclosed to the community that he had sold all of his Litecoin holdings to separate himself from the market and so as not to seem biased when speaking about Litecoin. This had an impact at the time on the Litecoin price UK.
What is Litecoin worth?
What purpose does it serve?
Value of Litecoin
In the decade that Litecoin has been around, the altcoin has seen a rise in value of approximately 960%. The value of LTC can be established by viewing a reputable exchange and checking what the value is at that given moment, as with any market related asset. Litecoin is a prominent feature in the top 10 cryptocurrencies based on overall market capitalization, and is a popular cryptocurrency based on its quick and inexpensive transactions.
Due to Litecoin’s low cost transactions fees and fast transaction speeds, Litecoin offers an excellent means to send money internationally. Far surpassing the tiresome and costly process of transferring fiat funds across borders, Litecoin allows anyone anywhere in the world to instantly send funds no matter how big or small.
Low Transaction Fees
Another feature of the Litecoin network is the very small transaction fees charged when transacting the cryptocurrency. Litecoin offers users a flat rate, as opposed to a percentage of the transaction as many other cryptocurrencies do. The Litecoin transaction fee is set at 1/1,000 LTC, and this fee is paid directly to the miner verifying the transaction.
Why was Litecoin Created?
Litecoin was created as a hard fork off of the Bitcoin network, meaning that it was created by "duplicating" the Bitcoin blockchain and implementing changes to the coding. To set itself apart from the original cryptocurrency, Litecoin implemented several changes including increasing its maximum supply, changing its hashing algorithm and reducing the block creation time.
These cryptocurrencies (altcoins) typically provided very similar use cases to Bitcoin, in that they also offered a digital payment system. Litecoin is celebrated for having a lower price (Litecoin price UK at the time of writing is trading at under £120) and offering cheaper and faster transactions compared to many other payment-driven cryptocurrencies, and fiat currencies in general. Litecoin proves to deliver on these criteria with its impressive market cap, high trading volume and low-risk functionality.
What Is The Difference Between Litecoin and Bitcoin?
Let's start with the block creation time. On the Bitcoin network, a new block is created every 10 minutes, meaning that transactions are executed every 10 minutes (when the network is not congested). Using the same peer-to-peer functionality, the Litecoin network opted to decrease this feature to 2.5 minutes, ensuring that the network can operate faster and provide a stronger medium of exchange to the market while still maintaining security.
By reducing the transaction time by a quarter, the Litecoin team also chose to increase the total supply of coins on the market by four. Compared to Bitcoin's cap of 21 million coins, Litecoin has a maximum of 84 million coins that will ever enter circulation. At the time of writing, there are 66.7 million coins in circulation, approximately 79% of the total supply. It is estimated that the last LTC will be mined in 2140.
Why Tap Global is the best for buying Litecoin
How Does Litecoin Work?
While not the last change Litecoin implemented to its digital network, certainly one of the more important ones. Litecoin changed the hashing algorithm from SHA-256 to Scrypt, requiring less energy and being a faster and easier algorithm in general. Scrypt also allows people to mine LTC without investing in expensive and complicated hardware and in some cases, property to house the mining equipment.
Litecoin and Bitcoin use the same mining process and both use a proof of work consensus mechanism. The networks also both undergo halvings every (roughly) 4 years, Bitcoin's is triggered every 210,000 blocks while Litecoin's halving takes place every 840,000 blocks. This automatically reduces the miner's rewards by half, used as a tool to manage the number of coins entering circulation each year.
What Influences Litecoin Price?
To date, Litecoin reached its all-time highest price of $412.96 in May 2021 and has since corrected to around half of that. Typically, the Litecoin price is based on supply and demand, however other attributes like the news, Bitcoin's price activity and general market sentiment can all play a role in the pace at which the currency increases in value.
How To Buy Litecoin?
If you would like to get your hands on Litecoin, users can easily buy LTC through the Tap app. Simply follow these easy steps and as a result, you'll have a piece of one of the top 20 biggest cryptocurrencies in no time.