Disclosure: I currently own a small amount of Litecoin that I keep should I want to invest in other cryptocurrencies. Ironically, my reason for owning Litecoin has switched from an litecoin vs bitcoin price preference to a medium of exchange for other crypto preferences. This article may positively or negatively affect my holdings.
It’s the largest cryptocurrency out there, and regulators, traditional media and economists alike sometimes talk as if it’s the only digital currency. There are well over one thousand alternatives to Bitcoin. One way to understand cryptocurrencies is to liken digital currencies to the video game console industry of the 1980s. No one in the early ’80s could tell Nintendo would come out as the dominant player in the space. The world just knew that once you could play video games in your living room, it made little sense to travel to arcades.
Bitcoin has been the dominant player thus far, but this doesn’t mean Bitcoin is the future of cryptocurrencies. In fact, it is probably more like the Commodore 64. While Bitcoin is the original cryptocurrency, nobody should be convinced that its first-mover advantage will be maintained over the long term. But in the middle term, Litecoin could replace Bitcoin as the lead dog during the next phase of cryptocurrency evolution. The blockchain technology on which Bitcoin relies creates a bottleneck on the number of transactions that can occur at the same time.
Who wants to figure out the math on what fraction of a Bitcoin you need to pay for groceries? If we wanted to adopt a currency that costly, we all could have pushed to use gold ETFs to buy groceries years ago. It is vulnerable to quantum computing. While the technology doesn’t exist yet, some technologists believe that the evolution in artificial intelligence will soon create the breakthrough in quantum computing that renders Bitcoin and its first generation distributed ledger technology obsolete. And which coin will it be? The case for Litecoin is a simple one.
Created in 2011 by Coinbase employee Charlie Lee, LTC is the only coin currently accepted on Coinbase — one of the largest U. Litecoin as a medium of exchange and utilizing it for such transactions seems more palatable than the other coins listed on coinbase. 1,000 USD with a limited supply. That being said, there are still areas in which Litecoin could fall short.