If you want to know what Litecoin is and if it is a good investment, you are in the right place.
Litecoin is one of the most popular altcoins and also one of the oldest cryptocurrencies on the market. Currently, it is the 14th largest coin in terms of market capitalization and has a value of over $12. Billion.
The value of Litecoin has experienced serious changes. Spikes in the price of the coin have been followed by sell-offs.
Does this make Litecoin a good investment for 2021? We will answer this question in this article.
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What is Litecoin?
Litecoin is a cryptocurrency that uses peer-to-peer technology to make payments anywhere in the world. It is usually considered the first successful altcoin because of its complementary nature to Bitcoin and because it has established a market for itself.
The coin was created by Charlie Lee in October 2011. It is one of the longest-standing altcoins. Litecoin was created to be a lighter version of Bitcoin. Its transactions are four times faster than Bitcoin and also have a very low transaction fee.
Unlike Bitcoin that can be mined every 10 minutes, Litecoin can be mined every 2.5 minutes. This makes it possible for the coin to handle more transactions.
Just like Bitcoin, Litecoin makes use of an open-source payment network that is not influenced by any authority. However, Litecoin has a larger supply limit of 84 million LTC (compared to Bitcoin’s 21 million). Due to this difference in supply limit, Litecoin is considered to be the silver to Bitcoin’s gold.
Is Litecoin a good investment for 2021?
Litecoin consistently ranks in the top 15 cryptocurrencies by market capitalization. This makes it stable when compared to other altcoins that were created around the same time.
Most of the supporters of Litecoin believe that an increase in the use of Litecoin will increase its value. Litecoin is a great investment opportunity for those that are interested in a technology that supports fast and cheap borderless transactions. Its affordability and stability make it a good investment option for people that want to invest in altcoins.
In terms of price, while Litecoin is currently less than $150, the price of a Bitcoin is more than $30,000.
However, Litecoin is not a good investment even though it could be a good speculative trade. The engineers and developers of Litecoin are not robust. Also, there are no good cases of investors reasonably making use of the coin.
Also, the creator of the coin has sold off all his coins, except the few he kept as collectibles. This is a questionable move.
Although Litecoin does not have any credible investment foundation, it can still be a good trade for those that do not care about the concerns we raised but are only considering the price action.
For those that think Litecoin is a good investment, it is far from being a good investment.
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