Litecoin Seen As The Bitcoin Alternative
Imagine if you bought Bitcoin just 2 years ago. A $10 investment in 2011 could be worth over $1,000 by late 2013. If the speculators have their way, it is believed by some that Bitcoin will reach $10,000 in less than 2 years (if not sooner) and even approach the $100,000 mark someday. Whether this will actually happen is anybody’s guess. However, if you want to get into the digital currency boom, and specifically cryptocurrencies, then you may want to consider alternatives – unless you can fork out the $1,000 plus to buy just a single Bitcoin. Litecoin is seen by as many as the next big cryptocurrency to Bitcoin.
As with Bitcoin, Litecoin is a peer-to-peer digital currency that is not controlled or produced by any central authority. Litecoin was intended to improve upon Bitcoin in several key aspects. However, there is still some doubt that Litecoin will really plug some of the holes that have been identified in the Bitcoin system. Although Litecoin has received significant media attention in recent months, much of it has been on the back of Bitcoin.
Litecoin is relatively new on the scene having been introduced in 2011, some 2 years after Bitcoin was launched. Even with the recent media attention, Litecoin has been unable to increase in value to the same extent as Bitcoin. While Bitcoin hovers around the $1,000 mark, a single Litecoin is bouncing around $30.
Mine or Buy
For the average Joe sitting at home with a PC, Bitcoin mining is nothing short of a mammoth task. As the number of Bitcoins (and transactions) increase, mining requires greater computing power. What could have been pulled off with the average PC about 2 years ago now needs more expensive computers with significantly superior processing power. Not an economical option for most home Bitcoiners. It is not just the cost of the equipment needed for Bitcoin mining but also the electricity consumption that has to be factored in.
In comparison, Litecoin is much easier to mine. While it could be done on a home computer, it still takes significant processing power and electricity consumption. The process may be slow but at least Litecoin mining is more likely to yield some digital currency of worth for the average home user compared to Bitcoin mining. But there is no denying that whether you are looking at Bitcoin or Litecoin, buying the digital currency or earning in it are better options than mining.
Taking Over Where Bitcoin Ends
The Bitcoin system will only allow some 21 million Bitcoins to ever be produced. In comparison, some 84 million Litecoins can be produced. This may not seem as significant to die hard Bitcoiners since these cryptocurrencies can be utilized in fractions. However, Litecoin as with other digital currencies may allow some degree of continuation once the 21 million mark is reached with Bitcoins and the value of a coin skyrockets with some people hypothesizing that a single Bitcoin could even be worth $1 million someday.
Essentially Bitcoins value may move it out of the hands of the average consumer and this is where alternative currencies like Litecoin could find its niche. Furthermore the Litecoin system is faster in processing than Bitcoin’s transactions. Fundamental features of Litecoin was intended to prevent mining groups and commercial mining but Litecoin may not be as capable in preventing this as originally surmised. While Litecoin may take over from Bitcoin, although not necessarily surpassing Bitcoin’s value, it is likely that the system will not end with Litecoin.
It is estimated that there are some 80 cryptocurrencies in use or at advanced development stages. Where the entire cryptocurrency concept will go and whether it will survive the long term is yet to be seen. What is known for sure is that Bitcoin and other ‘mature’ cryptocurrencies have fundamentally shaken the foundations of online trading and even the real world monetary system.