3 Benefits of Litecoin

by Andrew McGuinness     Jun 21, 2018

As of the past couple of years, cryptocurrency has been making it big. Anyone who hasn’t yet invested in cryptocurrency may begin to feel like they’re losing their chance. Especially when it comes to the first and most successful digital currency, Bitcoin, people appear to be shying away from an investment this late in the game.

Why is that? Well, first and foremost, as someone who is making their first investment in the cryptocurrency market, investing in Bitcoin is far too expensive for the novice investors. It is far too great a risk for those of us who have no idea what we are doing but would still like to dip our toes into the action and contribute to the future fusion of technology and currency.

So, what options do we have as novice investors? The answer is alternative coins. Despite the fact that some of these may be even riskier than bitcoin due to their lack of stability, profits, or time on the market, some alternative coins are a perfect investment to start off with. One particular alternative coin that may give Bitcoin a run for its money is Litecoin. Here are three benefits Litecoin could offer you as an investor.

1. More blocks, less time

Unlike Bitcoin, Litecoin is able to produce a single block in less than three minutes. Bitcoin can take up to ten minutes to create a block. But what does this mean for its users? The time it takes to create a block correlates directly with the time it takes for a transaction to be completed.

In other words, while Litecoin will have a fairly easy time allowing transactions to swiftly be fulfilled, bitcoin is stuck taking four times as long to do the same work. When it comes to urgent situations, last minute transactions, or smaller purchases, this starts to become more of a problem. This is due to the fact that sometimes, merchants or consumers simply don’t have the time to spare.

2. Simplified mining

Litecoin uses a much more straightforward and basic algorithm than most cryptocurrencies. This algorithm is called Scrypt. It allows for mining to be carried out on far less expensive, less powerful computers, which is also a benefit when it comes to your electricity bill. This is a huge benefit of Litecoin considering the fact that the biggest disadvantage of mining has been the price of pursuing coins this way.

Between the price of incredibly powerful computers that even allow for mining, the tireless hours of work that are put in, and the electricity bill that results from supporting such expensive computers, mining bitcoin is no longer a task worth pursuing. The reason for this is that the reward of bitcoins that would be expected from mining is no longer guaranteed. It is now a bit like a raffle, with only a few lucky investors being compensated for their work, money, and time.

3. Facts and figures

Litecoins in existence, both mined and those yet to be mined, reach 84 million coins. This is exactly four times the number of minable bitcoins in existence. Due to the fact litecoins are greater in number than the total amount of bitcoins, they are able to be sold at a considerably lower price per unit. So, one advantage of litecoins is the fact that you are able to own more whole units for less money than you would spend on fractions of a bitcoin.

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